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

• Market Cap: ¥4.16B
• Dividend Yield: N/A
• Average Volume (3M): 22.40K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.63
• Revenue Growth: 2.99%
• EPS Growth: -87.21%
• Country: JP
• Employees: 868
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 4.49
• Shares Outstanding: 6,929,900
• 10 Day Avg. Volume: 30,720
• 30 Day Avg. Volume: 22,400
• PEG Ratio: <0.01
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 34.07
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥645.00 ▲(6.79% Upside)

First Baking Co., Ltd. demonstrates strong financial recovery and operational improvements, which are the most significant factors driving the score. Technical indicators suggest bullish momentum, though caution is advised due to overbought signals. The valuation is reasonable, but the lack of a dividend yield may limit appeal to some investors.

Positive Factors

Financial Recovery

The company's financial recovery, marked by improved profitability and cash flow, strengthens its ability to invest in growth and weather economic fluctuations.

Balance Sheet Strength

A low debt-to-equity ratio indicates a strong balance sheet, providing financial stability and flexibility for future investments and growth.

Cash Flow Growth

Strong free cash flow growth enhances the company's ability to reinvest in its operations, pay down debt, and pursue strategic opportunities.

Negative Factors

Asset Management Concerns

A decline in total assets may indicate challenges in asset management, potentially impacting long-term growth and operational efficiency.

Earnings Volatility

Significant volatility in earnings per share suggests potential instability in profitability, which could affect investor confidence and long-term planning.

Equity Ratio Stability

While the equity ratio is stable, maintaining this balance is crucial for financial health, as shifts could impact leverage and risk profile.

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

Company Description

First Baking Co., Ltd. (2215) is a prominent player in the food manufacturing sector, specializing in the production and distribution of a wide range of baked goods. The company offers an extensive portfolio that includes bread, pastries, cookies, and specialty items, catering to both retail and wholesale markets. With a commitment to quality and innovation, First Baking Co. leverages modern baking techniques and premium ingredients to deliver products that meet diverse consumer preferences.

How the Company Makes Money

First Baking Co., Ltd. generates revenue primarily through the sale of its baked goods across various channels. The company has established key revenue streams from direct sales to supermarkets, convenience stores, and foodservice establishments. Additionally, First Baking Co. has strategically partnered with local and international distributors to expand its market reach, increasing overall sales volume. The company's revenue model benefits from seasonal promotions and product launches that attract consumer interest and drive sales. Furthermore, First Baking Co. invests in brand marketing and advertising to enhance brand visibility, which contributes to customer loyalty and repeat purchases.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.63B	27.18B	26.44B	24.55B	23.86B	24.02B
Gross Profit	7.18B	7.46B	7.04B	5.86B	6.26B	6.45B
EBITDA	812.25M	2.37B	1.06B	-503.00M	-70.00M	385.00M
Net Income	261.00M	2.06B	474.00M	-1.15B	-738.00M	-367.00M
Balance Sheet
Total Assets	14.95B	15.78B	17.73B	17.08B	18.01B	18.54B
Cash, Cash Equivalents and Short-Term Investments	3.47B	3.96B	3.06B	2.17B	1.45B	1.92B
Total Debt	5.00M	32.00M	3.89B	3.58B	4.44B	4.33B
Total Liabilities	6.82B	7.73B	11.52B	11.23B	10.52B	10.36B
Stockholders Equity	8.13B	8.05B	6.21B	5.84B	7.49B	8.18B
Cash Flow
Free Cash Flow	0.00	114.00M	178.00M	142.00M	-530.00M	-360.00M
Operating Cash Flow	0.00	952.00M	494.00M	473.00M	-10.00M	233.00M
Investing Cash Flow	0.00	3.90B	-304.00M	788.00M	-646.00M	-537.00M
Financing Cash Flow	0.00	-3.84B	698.00M	-543.00M	88.00M	287.00M

First Baking Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 604.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 604 is below the 20-day moving average (MA) of 614.25, below the 50-day MA of 612.86, and above the 200-day MA of 578.06, indicating a neutral trend. The MACD of -3.27 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 13.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	¥668.92B	16.82	9.18%	1.15%	3.53%	4.88%
2215	71 Outperform	¥4.16B	15.41	―	―	2.99%	-87.21%
2204	67 Neutral	¥18.36B	23.09	―	2.12%	-1.97%	7.25%
2264	65 Neutral	¥293.61B	39.42	―	2.48%	2.33%	-8.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2206	62 Neutral	¥354.65B	48.58	2.66%	1.65%	8.40%	-23.50%
2224	52 Neutral	¥11.59B	―	―	0.21%	-5.06%	-122.27%