KANRO Co., Ltd. (2216) AI Stock Analysis

• Market Cap: ¥90.77B
• Dividend Yield: 3.82%
• Average Volume (3M): 183.82K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.56
• Revenue Growth: 8.76%
• EPS Growth: 11.82%
• Country: JP
• Employees: 678
• Sector: Consumer Defensive
• Sector Strength: 52
• Industry: Food Confectioners
• EPS (TTM): 20.92
• Shares Outstanding: 45,946,810
• 10 Day Avg. Volume: 322,960
• 30 Day Avg. Volume: 183,820
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: 76 Outperform
• Price Target: ¥1,949.00 ▼(-1.91% Downside)

KANRO Co., Ltd. presents a strong investment case with excellent financial health and attractive valuation metrics. The stock's upward momentum is noteworthy, though potential overbought conditions could pose short-term risks. The absence of earnings call and corporate event data limits further analysis.

KANRO Co., Ltd. Business Overview & Revenue Model

Company Description

KANRO Co., Ltd. (2216) is a Japanese company primarily engaged in the production and sale of confectionery products. Established in 1950, the company is renowned for its wide range of candies, including hard candies, gummies, and throat lozenges. KANRO is especially known for its flagship product, Kanro Ame, a popular hard candy in Japan. The company operates in the food processing sector, focusing on delivering high-quality, innovative sweet treats that cater to diverse consumer tastes both domestically and internationally.

How the Company Makes Money

KANRO Co., Ltd. generates revenue primarily through the sale of its confectionery products. The company markets its products under various brand names, appealing to different consumer segments. Retail distribution is a significant revenue stream, with products available in supermarkets, convenience stores, and through online platforms. KANRO also engages in strategic partnerships and collaborations to enhance its market reach and product offerings. Additionally, the company invests in research and development to innovate new flavors and products, which helps maintain consumer interest and drive sales. Export sales to international markets also contribute to the company's earnings, as it seeks to expand its global footprint.

KANRO Co., Ltd. Financial Statement Overview

Summary

KANRO Co., Ltd. demonstrates strong financial health with consistent revenue growth, improved profit margins, low financial leverage, and robust cash flow generation. The company's ability to manage costs and leverage equity effectively contributes to its high financial performance score.

Income Statement

KANRO Co., Ltd. displays strong financial health with consistent revenue growth over the years. The gross profit margin has increased, reaching about 41.5% in the latest year. Net profit margin has shown a consistent improvement, rising to 10.3% from 3.8% over five years, indicating an increase in operational efficiency. The EBIT and EBITDA margins have also improved, reflecting better cost management and profitability.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.007, which indicates low financial leverage and risk. The return on equity (ROE) has improved significantly, reaching approximately 19.4%, showcasing effective use of equity capital. The equity ratio stands at a healthy 57.8%, underlining financial stability. However, there is room for improvement in asset utilization.

Cash Flow

KANRO Co., Ltd. has displayed strong cash flow generation, with operating cash flow consistently exceeding net income, indicative of high-quality earnings. The free cash flow growth rate is robust, although the free cash flow to net income ratio has seen some fluctuations. The company maintains a strong liquidity position, enabling strategic financial maneuvers.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.78B	29.02B	25.12B	21.59B	23.32B
Gross Profit	13.19B	11.74B	9.67B	8.35B	10.86B
EBITDA	5.86B	4.60B	3.08B	2.38B	2.02B
Net Income	3.26B	2.46B	1.35B	879.02M	610.51M
Balance Sheet
Total Assets	29.11B	25.84B	22.32B	21.20B	19.78B
Cash, Cash Equivalents and Short-Term Investments	5.04B	3.82B	2.31B	2.16B	1.31B
Total Debt	120.16M	163.76M	61.31M	561.98M	1.10B
Total Liabilities	12.27B	11.31B	9.76B	9.45B	8.60B
Stockholders Equity	16.83B	14.53B	12.56B	11.75B	11.18B
Cash Flow
Free Cash Flow	1.99B	2.10B	1.24B	1.46B	-284.81M
Operating Cash Flow	4.40B	3.94B	2.37B	2.62B	1.44B
Investing Cash Flow	-2.17B	-1.84B	-1.12B	-1.00B	-1.57B
Financing Cash Flow	-1.01B	-585.12M	-1.11B	-770.89M	-48.13M

KANRO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1987.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2216, the sentiment is Positive. The current price of 1987 is above the 20-day moving average (MA) of 1667.10, above the 50-day MA of 1545.94, and above the 200-day MA of 1230.18, indicating a bullish trend. The MACD of 119.60 indicates Negative momentum. The RSI at 84.73 is Negative, neither overbought nor oversold. The STOCH value of 97.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2216.

KANRO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2216	76 Outperform	¥90.77B	25.05		3.82%	8.76%	11.82%
2207	74 Outperform	¥36.27B	7.64		1.56%	15.08%	―
2221	74 Outperform	¥34.68B	10.63		0.84%	13.43%	60.08%
Sector *	68 Neutral	¥216.30B	20.87	8.19%	2.25%	4.81%	0.40%
2211	65 Neutral	¥64.75B	38.68		1.21%	5.37%	-2.18%
2217	64 Neutral	$32.73B	26.56		1.32%	0.62%	-32.02%
2208	63 Neutral	¥61.50B	12.13		0.72%	8.26%	24.25%

KANRO Co., Ltd. Corporate Events

Kanro Co., Ltd. Reports Strong H1 2025 Financial Results and Announces Share Split

Kanro Co., Ltd. reported its non-consolidated financial results for the first half of 2025, showing a 7.5% increase in net sales and a 13.7% rise in operating profit compared to the previous year. The company also announced a three-for-one share split effective July 1, 2025, and revised its full-year financial forecast, indicating a cautious yet positive outlook for the remainder of the year.

KANRO Co., Ltd. Announces Share Split and Dividend Forecast Revision

KANRO Co., Ltd. has announced a series of strategic changes including a three-for-one share split, amendments to its Articles of Incorporation, and revisions to its dividend forecast and shareholder benefit plan. These measures are intended to enhance share liquidity and attract a wider investor base, with no significant change to the overall dividend payout anticipated.

KANRO Co., Ltd. Reports Strong Q1 2025 Financial Results

KANRO Co., Ltd. reported a positive financial performance for the first quarter of 2025, with net sales increasing by 7.8% and operating profit rising by 15.2% compared to the same period in the previous year. The company maintained a strong equity ratio of 63.1%, indicating a stable financial position. While the company forecasts a modest increase in net sales for the full year, it anticipates a slight decline in operating and ordinary profits, reflecting potential challenges in maintaining profit margins.