First Baking Co., Ltd. (2215) AI Stock Analysis

• Market Cap: ¥3.63B
• Dividend Yield: N/A
• Average Volume (3M): 9.91K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 0.70
• Revenue Growth: 1.52%
• EPS Growth: 118.65%
• Country: JP
• Employees: 868
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 5.63
• Shares Outstanding: 6,929,900
• 10 Day Avg. Volume: 9,140
• 30 Day Avg. Volume: 9,906
• PEG Ratio: -0.17
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 67 Neutral
• Price Target: ¥582.00 ▲(11.71%Upside)

First Baking Co., Ltd. shows strong financial recovery and attractive valuation, indicating potential for growth and stability. However, technical analysis suggests bearish momentum, which could pose short-term challenges. The substantial improvements in profitability and balance sheet strength are key positives, but market sentiment appears cautious, impacting the overall score.

First Baking Co., Ltd. Business Overview & Revenue Model

Company Description

First Baking Co., Ltd. (2215) is a Japanese company specializing in the production and distribution of baked goods. Founded in 1947, the company operates primarily in the food industry, offering a wide range of products including bread, pastries, and confectionery items. With a focus on quality and innovation, First Baking Co., Ltd. serves both domestic and international markets, catering to a diverse customer base through retail, wholesale, and private label channels.

How the Company Makes Money

First Baking Co., Ltd. generates revenue through the sale of its baked products, which include bread, pastries, and sweets, to various customer segments. The company's revenue model is primarily based on direct sales to consumers through retail outlets and supermarkets, as well as sales to businesses such as restaurants and hotels. Additionally, the company engages in private label manufacturing for other brands, which provides a significant revenue stream. Partnerships with retail chains and foodservice companies help expand its market reach, while innovation in product development and marketing strategies contribute to maintaining and growing its customer base.

First Baking Co., Ltd. Financial Statement Overview

Summary

First Baking Co., Ltd. exhibits a robust financial recovery with significant improvements in profitability and cash flow. The reduction in debt and enhancement of equity position strengthens the balance sheet. While revenue growth is positive, careful attention to asset management and sustaining operational efficiencies will be key for future stability.

Income Statement

First Baking Co., Ltd. has shown a positive revenue growth trend with a 2.8% increase from 2023 to 2024 and a more significant growth from 2022. The gross profit margin improved to 27.43% in 2024, indicating stronger cost management. The net profit margin saw a notable improvement from a loss in previous years to 7.56% in 2024, highlighting a return to profitability. EBIT and EBITDA margins also turned positive, reflecting operational improvements.

Balance Sheet

The company's debt-to-equity ratio drastically decreased due to the reduction in total debt and an increase in equity, now at 0.004, showcasing a stronger equity position. The return on equity improved significantly to 25.51% in 2024, indicating efficient use of equity to generate profits. The equity ratio is at 51.05%, showing a stable capital structure, though the decrease in total assets from previous years needs monitoring.

Cash Flow

First Baking Co., Ltd. experienced strong free cash flow growth, with an increase in free cash flow from ¥142 million in 2022 to ¥282 million in 2024. The operating cash flow to net income ratio of 0.46 reflects a healthy cash generation relative to reported income, and the free cash flow to net income ratio is 0.14, indicating potential for reinvestment and debt reduction.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.18B	26.44B	24.39B	23.86B	24.02B
Gross Profit	7.46B	7.04B	5.73B	6.26B	6.45B
EBITDA	2.37B	1.06B	-500.00M	-67.00M	385.00M
Net Income	2.06B	474.00M	-1.15B	-738.00M	-367.00M
Balance Sheet
Total Assets	15.78B	17.73B	17.08B	18.01B	18.54B
Cash, Cash Equivalents and Short-Term Investments	3.96B	3.06B	2.17B	1.45B	1.92B
Total Debt	32.00M	3.89B	3.58B	4.44B	4.33B
Total Liabilities	7.73B	11.52B	11.23B	10.52B	10.36B
Stockholders Equity	8.05B	6.21B	5.84B	7.49B	8.18B
Cash Flow
Free Cash Flow	114.00M	178.00M	142.00M	-530.00M	-360.00M
Operating Cash Flow	952.00M	494.00M	473.00M	-10.00M	233.00M
Investing Cash Flow	3.90B	-304.00M	788.00M	-646.00M	-537.00M
Financing Cash Flow	-3.84B	698.00M	-543.00M	88.00M	287.00M

First Baking Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 521.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2215, the sentiment is Negative. The current price of 521 is below the 20-day moving average (MA) of 531.25, below the 50-day MA of 543.42, and below the 200-day MA of 581.56, indicating a bearish trend. The MACD of -5.02 indicates Positive momentum. The RSI at 31.99 is Neutral, neither overbought nor oversold. The STOCH value of 2.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2215.

First Baking Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2212	72 Outperform	$633.68B	17.55	8.78%	1.21%	4.25%	4.06%
Sector *	68 Neutral	¥196.08B	21.31	8.29%	2.30%	4.93%	0.78%
2215	67 Neutral	¥3.63B	1.99		―	1.52%	118.65%
2264	63 Neutral	¥297.51B	51.92		2.68%	2.58%	-90.84%
2204	62 Neutral	¥18.48B	20.32		2.10%	-1.38%	120.33%
2206	56 Neutral	€289.78B	52.19	2.04%	2.01%	-3.24%	-63.77%
2224	54 Neutral	¥10.93B	256.24		0.22%	-2.72%	1.41%