Yamazaki Baking Co (2212) AI Stock Analysis

• Market Cap: ¥652.92B
• Dividend Yield: 1.18%
• Average Volume (3M): 421.77K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.53
• Revenue Growth: 4.25%
• EPS Growth: 4.06%
• Country: JP
• Employees: 33,393
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 55.39
• Shares Outstanding: 220,282,870
• 10 Day Avg. Volume: 373,490
• 30 Day Avg. Volume: 421,766
• PEG Ratio: 1.26
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.99
• 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: ¥3,431.50
• Price Target Upside: 6.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: ―

Yamazaki Baking Co.'s strong financial performance, highlighted by robust revenue growth and solid cash flow, is the primary driver of its stock score. The company's stable balance sheet further supports its growth initiatives. The technical analysis indicates a positive long-term trend despite short-term fluctuations. Valuation metrics, including a reasonable P/E ratio and a modest dividend yield, add a moderate level of attractiveness. Overall, the stock is well-positioned, but room for improvement in profitability and short-term price momentum remains.

Yamazaki Baking Co Business Overview & Revenue Model

Company Description

Yamazaki Baking Co., Ltd., through its subsidiaries, manufactures and sells baked goods in Japan. Its products include loaf bread, sweet buns, donuts, hard rolls, and Danish pastries; Japanese, Western style, and rice-derived and based confectionery; processed bread and noodles, prepared rice, and side dishes; and chocolates, candies, stevia-based and other sweeteners, snack foods, and soup and soup stocks, as well as jams, marmalades, jelly and yokan products, and ready-to-eat curries in retort pouches. The company also manufactures biscuits, cookies, crackers, and frozen bread dough; provides coffee and juice under the Yamazaki brand; creams, curry fillings, stuffing for Chinese filled buns, croquettes, meat patties, and mayonnaise products; and prepared mixes for bread, tempura, and fried chicken, as well as sells products procured from other companies. In addition, it is involved in the manufacture and sale of cleaning and disinfecting agents for food production equipment; operation of bread and pastry shops, restaurants, convenience stores, and supermarkets; provision of retail bakery and cafe management, in-store bakery management, general truck transport and freight forwarding, and insurance services; and design of equipment for manufacturing bread and confectionery, installation of production facilities, and other services. Further, the company offers logistics management services; and manufactures and sells stevia-based and other sweeteners. As of December 31, 2021, it operated 1,389 stores. Yamazaki Baking Co., Ltd. was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Yamazaki Baking Co. generates revenue primarily through the production and sale of its extensive range of bakery products, including bread, pastries, and sweet buns. The company operates numerous production facilities that enable it to maintain a steady supply of fresh products to supermarkets, convenience stores, and other retail outlets. In addition to its domestic operations, Yamazaki has expanded its presence internationally, further contributing to its revenue streams. The company's earnings are also bolstered by strategic partnerships and collaborations, which enhance its product offerings and market reach. Yamazaki Baking's significant market share in Japan, coupled with its commitment to quality and innovation, plays a crucial role in sustaining its profitability.

Yamazaki Baking Co Financial Statement Overview

Summary

Yamazaki Baking Co. demonstrates a strong financial performance with robust revenue growth and solid cash flow generation. The company's stable balance sheet, marked by low leverage and a healthy equity ratio, supports its growth initiatives. While profitability at the net level could be enhanced, the company's operational efficiency remains commendable. Continued focus on margin improvement and cash flow optimization would further solidify its financial standing.

Income Statement

The company shows a solid growth trajectory with a revenue growth rate of 5.86% from the previous year. The gross profit margin stands robust at 32.55%, indicating strong cost management. However, the net profit margin is moderate at 2.89%, suggesting room for improvement in overall profitability. EBIT and EBITDA margins are healthy, reflecting efficient operational management.

Balance Sheet

The balance sheet reveals a stable financial position with a low debt-to-equity ratio of 0.25, signifying prudent leverage management. The return on equity is satisfactory at 8.74%, indicating effective use of shareholders' equity to generate profits. The equity ratio is strong at 47.65%, showcasing a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow, which grew by 6.98% year-over-year. The operating cash flow to net income ratio is favorable at 2.05, indicating strong cash generation capability relative to net income. The free cash flow to net income ratio of 0.86 suggests efficient conversion of net income into free cash flow, although there is potential for further improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.24T	1.18T	1.08T	1.05T	1.01T
	Gross Profit
405.25B	379.05B	343.61B	367.86B	353.62B
	EBIT
51.87B	41.96B	22.03B	18.36B	17.44B
	EBITDA
99.99B	88.53B	65.05B	61.36B	56.01B
	Net Income Common Stockholders
36.02B	30.17B	12.37B	10.38B	6.96B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.44B	134.94B	125.18B	138.14B	108.59B
	Total Assets
865.11B	802.03B	758.03B	757.35B	714.44B
	Total Debt
101.05B	80.13B	86.21B	97.86B	71.69B
	Net Debt
-51.40B	-54.81B	-38.98B	-40.28B	-36.89B
	Total Liabilities
404.62B	355.90B	350.14B	375.14B	352.06B
	Stockholders Equity
412.15B	400.14B	363.74B	342.57B	330.49B
Cash Flow		Free Cash Flow
30.89B	33.23B	12.21B	18.37B	10.15B
	Operating Cash Flow
73.97B	73.69B	52.77B	57.07B	47.16B
	Investing Cash Flow
-43.49B	-45.66B	-41.98B	-37.79B	-38.62B
	Financing Cash Flow
-15.04B	-18.83B	-26.70B	2.07B	-11.59B

Yamazaki Baking Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3223.00
• 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:2212, the sentiment is Positive. The current price of 3223 is below the 20-day moving average (MA) of 3252.95, above the 50-day MA of 3199.41, and above the 200-day MA of 2907.61, indicating a neutral trend. The MACD of -8.77 indicates Positive momentum. The RSI at 48.78 is Neutral, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2212.

Yamazaki Baking Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2212	77 Outperform	¥652.92B	17.86	8.78%	1.18%	4.25%	4.06%
Sector *	65 Neutral	$8.82B	14.91	4.71%	6.22%	3.60%	-2.66%
NPFUF		$1.13B	7.37	10.43%	2.85%	―	―
2215	67 Neutral	¥3.72B	2.05		―	1.52%	118.65%
2266	64 Neutral	¥23.50B	37.83		1.66%	-3.88%	-39.50%
2264	63 Neutral	¥293.88B	51.29		2.72%	2.58%	-90.55%
2002	60 Neutral	¥487.82B	14.66		3.49%	-0.79%	9.92%

Yamazaki Baking Co Corporate Events

Yamazaki Baking Co. Reports First Quarter 2025 Financial Results

Yamazaki Baking Co. reported a 3.9% increase in net sales for the first quarter of 2025, with operating profit rising by 1.8%. Despite a slight decrease in ordinary profit, the company maintained stable profitability with a minor increase in profit attributable to owners of the parent. The equity-to-asset ratio improved slightly, indicating a stable financial position. The company also announced a forecasted increase in annual dividends per share, reflecting confidence in its ongoing financial performance.