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

• Market Cap: ¥90.25B
• Dividend Yield: 3.9%
• Average Volume (3M): 37.07K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.49
• Revenue Growth: 11.70%
• EPS Growth: -3.61%
• Country: JP
• Employees: 644
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Inputs
• EPS (TTM): 56.95
• Shares Outstanding: 32,800,095
• 10 Day Avg. Volume: 33,510
• 30 Day Avg. Volume: 37,066
• PEG Ratio: 15.93
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 8.58
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,149.00 ▲(11.79% Upside)

WELLNEO SUGAR Co.Ltd. benefits from strong technical indicators and a solid valuation, which are the primary drivers of its score. Financial performance is robust, but cash flow concerns slightly temper the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth of 11.7% indicates robust demand for products and effective market penetration, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests conservative leverage, providing financial stability and flexibility for future investments and growth.

Product Diversification

Product diversification across various sugar types and markets reduces risk and enhances resilience against market fluctuations, supporting sustainable growth.

Negative Factors

Cash Flow Concerns

Negative free cash flow growth indicates potential challenges in liquidity management, which could impact the company's ability to fund operations and investments.

Operational Efficiency

Declining EBIT and EBITDA margins suggest pressure on operational efficiency, which may affect profitability if not addressed through cost management or process improvements.

Equity Ratio Decline

A declining equity ratio may indicate a shift towards higher debt usage, potentially increasing financial risk if not managed carefully.

WELLNEO SUGAR Co.Ltd. Business Overview & Revenue Model

Company Description

Nissin Sugar Co., Ltd. manufactures and sells sugar and other food products primarily in Japan. The company offers white soft, frost, granulated, powdered, brown soft, light brown crystal, white crystal, rock, liquid, kibi zato, calcium fortified, and cup sugar products. It also provides individually packed gum syrup, low calorie sweetener, cup oligo/GOS, and large pack for commercial use. In addition, the company operates a chain of Do Sports Plaza fitness club. Further, it is involved in the warehousing business. The company was founded in 1944 and is headquartered in Tokyo, Japan.

How the Company Makes Money

WELLNEO SUGAR Co.Ltd. generates revenue primarily through the sale of its sugar products to various sectors, including food manufacturers, wholesalers, and retailers. The company has established long-term contracts with key clients, which provide a stable revenue stream. Additionally, WELLNEO SUGAR engages in export activities, supplying sugar to international markets, which further diversifies its income sources. The company also benefits from strategic partnerships with food and beverage companies, allowing for co-branded products and collaborative marketing efforts. Furthermore, WELLNEO SUGAR invests in sustainability initiatives, which can lead to cost savings and potential government incentives, contributing positively to its overall profitability.

WELLNEO SUGAR Co.Ltd. Financial Statement Overview

Summary

WELLNEO SUGAR Co.Ltd. demonstrates robust financial health with strong revenue growth and profitability. The balance sheet is solid with low leverage, and cash flows are generally healthy despite recent declines in free cash flow growth. The company is well-positioned in the food confectioners industry, but should monitor debt levels and cost pressures to sustain its financial performance.

Income Statement

WELLNEO SUGAR Co.Ltd. shows strong revenue growth with a 5.93% increase in the TTM period. The company maintains healthy profitability with a gross profit margin of 20.06% and a net profit margin of 5.73%. EBIT and EBITDA margins are also solid at 8.33% and 10.75%, respectively, indicating efficient operational management. However, the slight decline in EBIT margin compared to the previous annual report suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.24, indicating conservative leverage. The return on equity is modest at 7.68%, suggesting efficient use of equity capital. The equity ratio stands at 66.41%, highlighting a strong equity base. However, the increase in total debt over the periods warrants monitoring for potential leverage risks.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -2.77% in the TTM period, which could impact future liquidity. The operating cash flow to net income ratio is 1.73, indicating strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, showing effective conversion of income to cash. Despite the recent decline, the company maintains a solid cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.62B	97.07B	92.19B	58.35B	46.06B	43.77B
Gross Profit	20.75B	19.47B	16.24B	9.27B	8.21B	8.75B
EBITDA	11.03B	10.56B	9.81B	3.57B	3.88B	3.96B
Net Income	5.68B	5.57B	5.52B	1.06B	1.72B	1.13B
Balance Sheet
Total Assets	104.87B	110.35B	95.92B	93.57B	61.13B	61.32B
Cash, Cash Equivalents and Short-Term Investments	12.21B	15.45B	12.51B	11.26B	7.65B	8.52B
Total Debt	14.48B	17.76B	10.52B	12.61B	5.15B	5.15B
Total Liabilities	29.11B	35.98B	24.81B	25.31B	12.23B	12.77B
Stockholders Equity	75.76B	72.89B	71.11B	68.26B	48.90B	48.54B
Cash Flow
Free Cash Flow	8.16B	8.89B	4.87B	-2.21B	1.42B	2.70B
Operating Cash Flow	9.45B	8.93B	6.66B	-1.63B	2.18B	3.32B
Investing Cash Flow	-11.69B	-8.98B	-822.00M	4.61B	-651.00M	-482.00M
Financing Cash Flow	1.73B	2.99B	-4.59B	-3.68B	-2.40B	-2.40B

WELLNEO SUGAR Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2817.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 2817 is above the 20-day moving average (MA) of 2798.45, above the 50-day MA of 2693.48, and above the 200-day MA of 2412.12, indicating a bullish trend. The MACD of 32.85 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 77.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2112	80 Outperform	¥14.18B	5.54	―	1.91%	2.73%	59.02%
2117	76 Outperform	¥90.25B	16.23	―	3.90%	11.70%	-3.61%
2114	71 Outperform	¥30.32B	11.32	―	2.92%	6.64%	10.48%
2109	68 Neutral	¥101.61B	18.62	―	3.97%	3.69%	-27.70%
2108	63 Neutral	¥45.33B	-24.48	―	2.13%	3.82%	-131.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

WELLNEO SUGAR Co.Ltd. Corporate Events

WELLNEO SUGAR Co., Ltd. Reports Strong Interim Financial Results

WELLNEO SUGAR Co., Ltd. reported a 19.8% increase in revenue for the six months ending September 30, 2025, reaching 57,772 million yen. The company also saw a rise in operating profit by 7.5% to 5,190 million yen, indicating a positive financial performance. The interim dividend is set at 54 yen per share, with no revisions to the previously announced earnings forecast. The finalized provisional accounting treatment related to a business combination has been reflected in the financial results.

WELLNEO SUGAR Co., Ltd. Completes Treasury Share Acquisition

WELLNEO SUGAR Co., Ltd. has completed the acquisition of 9,000 treasury shares, which represents 0.03% of the total issued shares excluding treasury shares, for a total purchase price of 23,007,700 yen. This acquisition, conducted through the Tokyo Stock Exchange, was based on a resolution passed by the Board of Directors on September 17, 2025, and signifies the company’s strategic move to manage its capital structure effectively.

WELLNEO SUGAR Announces Treasury Share Acquisition for Employee Incentive Plan

WELLNEO SUGAR Co., Ltd. announced a resolution to acquire treasury shares to implement an incentive plan for its Employee Stock Ownership Association. This move is part of a strategic effort to boost employee motivation and corporate value ahead of a merger with DAIICHI TOGYO CO., LTD. The acquisition involves purchasing up to 9,000 common shares through the Tokyo Stock Exchange, with a maximum acquisition price of 28,000,000 yen, scheduled between October 6 and October 17, 2025.

WELLNEO SUGAR Announces Disposal of Treasury Shares to Boost Employee Engagement

WELLNEO SUGAR Co., Ltd. has announced the disposal of 9,000 treasury shares through a third-party allotment to its Employee Stock Ownership Association. This move is part of a broader strategy to merge with DAIICHI TOGYO CO., LTD., aiming to foster sustainable growth and increase corporate value by integrating corporate cultures and creating synergies. The disposal is intended to motivate employees by contributing to their asset formation and aligning their interests with the company’s success.