WELLNEO SUGAR Co.Ltd. (2117) AI Stock Analysis

• Market Cap: ¥72.63B
• Dividend Yield: 4.97%
• Average Volume (3M): 35.45K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.47
• Revenue Growth: 5.29%
• EPS Growth: 0.87%
• Country: JP
• Employees: 644
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Food Confectioners
• EPS (TTM): 5.23
• Shares Outstanding: 32,800,095
• 10 Day Avg. Volume: 30,160
• 30 Day Avg. Volume: 35,446
• PEG Ratio: -0.87
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,538.00 ▲(12.75%Upside)

WELLNEO SUGAR Co. Ltd. scores a solid 76, driven primarily by its strong financial performance and fair valuation. The stock's technical indicators suggest bearish sentiment, which slightly offsets the positive financial health and valuation metrics. The absence of earnings call data and corporate events does not affect the overall score calculation.

WELLNEO SUGAR Co.Ltd. Business Overview & Revenue Model

Company Description

WELLNEO SUGAR Co.Ltd. (2117) is a leading company in the sugar industry, specializing in the production, processing, and distribution of high-quality sugar products. Its core offerings include refined sugar, raw sugar, and specialty sugar products catering to both industrial clients and direct consumers. The company operates within the agricultural and food processing sectors, leveraging advanced technology and sustainable practices to ensure top-notch product quality and environmental responsibility.

How the Company Makes Money

WELLNEO SUGAR Co.Ltd. generates revenue primarily through the sale of its sugar products to various market segments, including industrial clients such as food and beverage manufacturers, and direct consumers through retail distribution channels. Key revenue streams include bulk sales of refined and raw sugar to industrial clients, which constitute a significant portion of its earnings. The company also diversifies its revenue by offering specialty sugar products aimed at niche markets demanding organic or health-focused alternatives. Strategic partnerships with agricultural producers and distribution networks enhance its market reach and operational efficiency, contributing to its profitability. Additionally, WELLNEO SUGAR Co.Ltd. may engage in export activities, expanding its market presence beyond domestic boundaries and tapping into global demand for sugar products.

WELLNEO SUGAR Co.Ltd. Financial Statement Overview

Summary

WELLNEO SUGAR Co. Ltd. demonstrates strong financial health with impressive revenue and profitability growth, efficient cost management, and solid cash flow generation. The balance sheet shows an increase in leverage, but the company maintains a robust equity base. The focus should be on improving net profit margins and managing leverage.

Income Statement

WELLNEO SUGAR Co. Ltd. has demonstrated impressive revenue growth from 2020 to 2025, with a notable increase in total revenue from 46,062 million to 97,069 million JPY. The gross profit margin improved over time, reaching 20.06% in 2025, indicating efficient cost management. The EBIT and EBITDA margins have also shown upward trends, with current margins at 8.77% and 10.88% respectively. However, the net profit margin remained relatively stable, currently at 5.73%, suggesting room for improvement in net profitability.

Balance Sheet

The company's balance sheet reflects a strong equity base with a significant increase in stockholders' equity to 72,892 million JPY. The debt-to-equity ratio has increased to 0.24, indicating a rise in leverage but still within a manageable range. The return on equity (ROE) is 7.63%, showcasing the company's ability to generate returns from its equity base. The equity ratio stands at 66.05%, highlighting a solid financial structure with a majority of assets funded by equity.

Cash Flow

WELLNEO SUGAR Co. Ltd. shows strong cash flow management, with a significant rise in free cash flow from 2,443 million JPY in 2020 to 8,886 million JPY in 2025. The operating cash flow to net income ratio is 1.60, indicating efficient conversion of income to cash. The free cash flow to net income ratio is 1.60, reflecting robust cash generation capabilities. The consistent positive free cash flow growth rate underscores the company's solid cash position.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
97.07B	92.19B	58.35B	46.06B	43.77B
	Gross Profit
19.47B	16.24B	9.27B	8.21B	8.75B
	EBIT
8.51B	5.71B	1.61B	2.16B	2.21B
	EBITDA
10.56B	9.81B	3.61B	3.68B	4.20B
	Net Income Common Stockholders
5.57B	5.52B	1.06B	1.72B	1.13B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.45B	12.51B	12.29B	13.79B	14.72B
	Total Assets
110.35B	95.92B	93.57B	61.13B	61.32B
	Total Debt
17.76B	10.52B	12.61B	5.15B	5.15B
	Net Debt
2.31B	-1.99B	1.34B	-2.50B	-3.38B
	Total Liabilities
35.98B	24.81B	25.31B	12.23B	12.77B
	Stockholders Equity
72.89B	71.11B	68.26B	48.90B	48.54B
Cash Flow		Free Cash Flow
8.89B	4.87B	-2.21B	1.42B	2.70B
	Operating Cash Flow
8.93B	6.66B	-1.63B	2.18B	3.32B
	Investing Cash Flow
-8.98B	-822.00M	4.61B	-651.00M	-482.00M
	Financing Cash Flow
2.99B	-4.59B	-3.68B	-2.40B	-2.40B

WELLNEO SUGAR Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2251.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2117, the sentiment is Negative. The current price of 2251 is below the 20-day moving average (MA) of 2260.55, below the 50-day MA of 2298.78, and above the 200-day MA of 2216.74, indicating a neutral trend. The MACD of -12.41 indicates Negative momentum. The RSI at 41.96 is Neutral, neither overbought nor oversold. The STOCH value of 21.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2117.

WELLNEO SUGAR Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2114	78 Outperform	¥27.29B	9.91		3.57%	8.96%	21.96%
2112	78 Outperform	¥9.09B	4.29		2.98%	3.07%	44.34%
2117	76 Outperform	¥72.63B	13.26		4.97%	5.29%	0.87%
2108	71 Outperform	¥32.80B	10.88		3.42%	-6.50%	48.53%
Sector *	65 Neutral	$8.73B	15.10	4.69%	4.08%	3.64%	-2.90%
2109	61 Neutral	¥96.14B	15.77		4.23%	4.69%	-25.47%

WELLNEO SUGAR Co.Ltd. Corporate Events

WELLNEO SUGAR Co., Ltd. Affirms Independence Amidst Major Shareholder Relationships

WELLNEO SUGAR Co., Ltd. announced its relationships with controlling shareholders, ITOCHU Corporation and Sumitomo Corporation, emphasizing its operational independence and adherence to market-based transactions. The company ensures fair transaction terms with its affiliates, safeguarding the interests of minority shareholders.

WELLNEO SUGAR Announces Key Personnel Changes Post-Merger

WELLNEO SUGAR Co., Ltd. announced personnel changes effective October 1, 2025, following its merger with its subsidiary, DAIICHI TOGYO CO., LTD. The merger will dissolve the subsidiary and integrate its operations, with key executives from DAIICHI TOGYO assuming new roles within WELLNEO SUGAR. This strategic move is expected to enhance operational efficiency and strengthen the company’s market position.

WELLNEO SUGAR Announces Strategic Merger with Toyo Sugar Refining

WELLNEO SUGAR Co., Ltd. has resolved to conduct an absorption-type merger with its wholly owned subsidiary, Toyo Sugar Refining Co., Ltd., effective October 1, 2026. This strategic move aims to enhance integrated management, improve efficiency, and maximize synergies within the Sugar and Food & Wellness Segments, following the company’s recent acquisition of Toyo Sugar Refining.

WELLNEO SUGAR Co., Ltd. Unveils FY3/25 Financial Results and Strategic Vision for 2027

WELLNEO SUGAR Co., Ltd. has announced its financial results for FY3/25 and provided forecasts for FY3/26, alongside progress on its medium-term management plan, WELLNEO Vision 2027. The company is prioritizing strategies such as expanding its food and wellness sectors, strengthening its sugar production, promoting human capital management, and enhancing sustainability management. These initiatives are expected to improve the company’s market position and provide better returns to shareholders.

WELLNEO SUGAR Co., Ltd. Achieves Compliance with TSE Prime Market Criteria

WELLNEO SUGAR Co., Ltd. has successfully met all the continued listing maintenance criteria for the Tokyo Stock Exchange Prime Market as of March 2025. This achievement follows the company’s strategic efforts to increase the liquidity of its shares and improve its tradable share ratio, ensuring compliance and positioning the company for sustainable growth and enhanced corporate value.

WELLNEO SUGAR Announces Merger with Subsidiary to Streamline Operations

WELLNEO SUGAR Co., Ltd. has announced a merger with its wholly-owned subsidiary, DAIICHI TOGYO CO., LTD., as part of a strategic move to streamline operations. The merger, which is expected to result in a loss on extinguishment of shares, is scheduled to be effective from October 1, 2025, pending shareholder approval. This consolidation is likely to enhance WELLNEO SUGAR’s operational efficiency and market positioning.

WELLNEO SUGAR Co., Ltd. Announces 2025 Financial Results and Strategic Changes

WELLNEO SUGAR Co., Ltd. reported its consolidated financial results for the year ended March 31, 2025, showing a revenue increase of 5.3% to 97,069 million yen and a 38.3% rise in operating profit to 8,024 million yen. The company also announced changes in its scope of consolidation, with the inclusion of Toyo Sugar Refining Co., Ltd. and TOHAN CORPORATION, and the exclusion of Nissin Sugar Co., Ltd. and ITOCHU Sugar Co., Ltd., which may impact its market positioning and stakeholder interests.

WELLNEO SUGAR Co., Ltd. Increases Annual Dividend Amid Strong Financial Performance

WELLNEO SUGAR Co., Ltd. announced an increase in its annual dividend to 102 yen per share, up from the previous forecast of 92 yen, due to better-than-expected financial performance. The decision reflects the company’s policy to prioritize shareholder returns, with a dividend payout ratio of 60% or a dividend on equity of 3%, whichever is higher, indicating a strong commitment to rewarding its shareholders.

WELLNEO SUGAR Introduces New Performance-Linked Remuneration System

WELLNEO SUGAR Co., Ltd. announced the introduction of a new performance-linked share-based remuneration system for its directors, aiming to align their remuneration more closely with the company’s business performance and share value. This system replaces previous remuneration plans and is designed to enhance corporate value by linking director incentives to long-term business success, pending approval at the upcoming General Meeting.

WELLNEO SUGAR Completes Acquisition of Toyo Sugar Refining

WELLNEO SUGAR Co., Ltd. announced the successful completion of its tender offer for Toyo Sugar Refining Co., Ltd., which will become a consolidated subsidiary by March 31, 2025. This acquisition is expected to strengthen WELLNEO SUGAR’s market position and expand its operational capabilities in the sugar refining industry.