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

• Market Cap: ¥72.23B
• Dividend Yield: 4.58%
• Average Volume (3M): 156.24K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.52
• Revenue Growth: 7.74%
• EPS Growth: 0.96%
• Country: JP
• Employees: 678
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 11.68
• Shares Outstanding: 45,946,810
• 10 Day Avg. Volume: 120,930
• 30 Day Avg. Volume: 156,243
• PEG Ratio: 0.16
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 8.35
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,801.00 ▲(13.99% Upside)

KANRO Co., Ltd. scores well due to its strong financial performance and attractive valuation. However, technical analysis indicates potential bearish momentum, which tempers the overall score.

Positive Factors

Revenue Growth

KANRO's consistent revenue and EPS growth indicate strong market demand and effective business strategies, supporting long-term expansion.

Margin Improvement

Improved margins reflect enhanced operational efficiency and cost management, contributing to sustainable profitability.

Low Financial Leverage

Low financial leverage reduces risk and enhances financial stability, providing flexibility for future investments and growth.

Negative Factors

Asset Utilization

Suboptimal asset utilization can limit efficiency and profitability, potentially hindering growth and competitive positioning.

Free Cash Flow Fluctuations

Fluctuating free cash flow ratios may indicate variability in cash generation, impacting financial predictability and investment capacity.

Bearish Technical Indicators

While technical indicators suggest short-term pressure, persistent bearish trends could affect investor confidence and market perception.

KANRO Co., Ltd. Business Overview & Revenue Model

Company Description

Kanro Inc. manufactures and sells confectionery and food products. The company's products include throat drops, candies, gummies, marshmallows, and ingredient-driven snacks. It offers its products under the Kanro candy, pure gummy, Candemina Gumi, Gold milk, Play! Gummy, Marosh, Hitotsubukanro, Fluffy and chewy gummies, Breongumi, Kanro Ame, Candemy Nagumi, Kin no Milk, Puré Gummy, healthy throat lozenges, herbal good, voice care throat lozenges, and Candemina Gummy brands, as well as various other brands. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

KANRO generates revenue through the sale of its confectionery products, which include a range of candies and gummies, often emphasizing health benefits such as low-calorie options and functional ingredients. The company has a diversified revenue model, relying on both direct sales through retail channels and partnerships with distributors and wholesalers. KANRO also engages in promotional activities and seasonal marketing campaigns to boost sales. Additionally, the company may benefit from strategic partnerships with other food and beverage brands, enabling it to expand its product offerings and reach new customer segments.

KANRO Co., Ltd. Financial Statement Overview

Summary

KANRO Co., Ltd. demonstrates strong financial health with consistent revenue growth and improved profit margins. The company shows effective cost management and profitability, with a low debt-to-equity ratio indicating low financial risk.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.94B	31.78B	29.02B	25.12B	21.59B	23.32B
Gross Profit	13.80B	13.19B	11.74B	9.67B	8.35B	10.86B
EBITDA	5.76B	5.86B	4.60B	3.08B	2.38B	2.10B
Net Income	3.37B	3.26B	2.46B	1.35B	879.02M	610.51M
Balance Sheet
Total Assets	30.47B	29.11B	25.84B	22.32B	21.20B	19.78B
Cash, Cash Equivalents and Short-Term Investments	5.26B	5.04B	3.82B	2.31B	2.16B	1.31B
Total Debt	127.22M	120.16M	163.76M	61.31M	561.98M	1.10B
Total Liabilities	12.60B	12.27B	11.31B	9.76B	9.45B	8.60B
Stockholders Equity	17.87B	16.83B	14.53B	12.56B	11.75B	11.18B
Cash Flow
Free Cash Flow	0.00	1.99B	2.10B	1.24B	1.46B	-284.81M
Operating Cash Flow	0.00	4.40B	3.94B	2.37B	2.62B	1.44B
Investing Cash Flow	0.00	-2.17B	-1.84B	-1.12B	-1.00B	-1.57B
Financing Cash Flow	0.00	-1.01B	-585.12M	-1.11B	-770.89M	-48.13M

KANRO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1580.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2216, the sentiment is Neutral. The current price of 1580 is above the 20-day moving average (MA) of 1514.75, below the 50-day MA of 1592.14, and below the 200-day MA of 1582.59, indicating a neutral trend. The MACD of -9.08 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 94.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2216.

KANRO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2208	76 Outperform	¥59.82B	12.04	―	1.55%	5.78%	14.23%
2207	75 Outperform	¥39.96B	11.45	―	1.51%	5.86%	57.87%
2211	71 Outperform	¥68.07B	35.58	―	1.14%	8.17%	10.65%
2216	68 Neutral	¥72.23B	20.22	―	4.58%	7.74%	0.96%
2217	68 Neutral	¥31.92B	35.18	―	1.34%	0.87%	-50.41%
2221	66 Neutral	¥34.66B	15.14	―	0.84%	15.03%	-26.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

KANRO Co., Ltd. Corporate Events

KANRO Co., Ltd. Reports Increased Sales and Announces Share Split

KANRO Co., Ltd. reported its non-consolidated financial results for the nine months ending September 30, 2025, showing a 7.6% increase in net sales compared to the previous year. The company also announced a three-for-one share split effective July 1, 2025, and revised its financial results forecast for the fiscal year, indicating a positive outlook for stakeholders despite a slight decrease in profit growth rates.

KANRO Co., Ltd. Reports Increased Sales and Share Split for 2025

KANRO Co., Ltd. reported a 7.6% increase in net sales for the nine months ending September 30, 2025, compared to the same period in the previous year. Despite a modest rise in profits, the company implemented a three-for-one share split to enhance shareholder value. The financial results indicate a stable growth trajectory, with a focus on maintaining profitability and shareholder returns. The company also revised its financial results forecast for the fiscal year, signaling confidence in its operational strategies.