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

• Market Cap: ¥64.61B
• Dividend Yield: 4.63%
• Average Volume (3M): 156.24K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.51
• Revenue Growth: 7.74%
• EPS Growth: 0.96%
• Country: JP
• Employees: 678
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 24.96
• Shares Outstanding: 45,946,810
• 10 Day Avg. Volume: 120,930
• 30 Day Avg. Volume: 156,243
• PEG Ratio: 6.02
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 2.01
• P/FCF Ratio: -613.72
• 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): 79.5
• Revenue Forecast (FY): ¥35.16B

• Rating: 69 Neutral
• Price Target: ¥1,543.00 ▼(-7.33% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily supported by strong financial performance (improving profitability and low leverage), with a reasonable valuation and dividend yield as secondary positives. These are partially offset by notably weak technical indicators and price trading below major moving averages.

Positive Factors

Improving profitability and steady revenue growth

KANRO’s multi-year revenue growth and a large step-up in net income to ¥3.4B by 2025 reflect durable demand and improved pricing/mix and operating leverage. This stronger earnings base supports reinvestment, dividend capacity, and resilience against cyclical dips over the medium term.

Conservative balance sheet with low leverage

Very low leverage and steadily expanding equity provide long-term financial flexibility, lowering refinancing and solvency risk. Strong ROE indicates efficient capital use, enabling the company to fund growth internally and withstand shocks without materially changing capital structure.

Solid operating cash flow generation

Consistent improvement in operating cash flow signals sustainable core cash generation, underpinning working-capital needs, capex, and shareholder returns. Reliable OCF reduces dependence on external financing and supports strategic investments over the next several quarters to years.

Negative Factors

Free cash flow volatility and negative FCF in 2025

A turn to negative free cash flow in 2025 and historical FCF volatility can constrain capital allocation choices, limit ability to sustain higher dividends or fund unexpected investments, and may force short-term financing or deferred projects, raising medium-term execution risk.

Gross margin compression and limited 2025 margin transparency

Noted gross margin compression and absent 2025 margin detail create uncertainty whether operating-profit gains are durable. If input-cost or mix pressures persist, sustained margin recovery may be at risk, weakening earnings quality over a multi-quarter horizon.

Concentration in domestic confectionery retail channels

High dependence on domestic packaged confectionery and retail channels concentrates demand and distribution risk. Slower secular growth, changes in Japanese consumer preferences, or retail-channel consolidation could materially affect top-line growth and limit diversification options over the medium term.

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

Strong profitability trend with steady revenue growth and a large net income step-up into 2025, supported by a conservatively financed balance sheet and strong ROE in 2023–2024. The main offset is cash-flow volatility, with free cash flow turning slightly negative in 2025, reducing near-term flexibility.

Income Statement

Revenue has grown steadily from 2022–2025 (2025 up ~5.6% year over year), with a strong step-up in profitability versus earlier years: net income rose from ~¥0.6B (2020) to ~¥3.4B (2025). Margins also improved meaningfully from 2021–2024 (2024 net margin ~10.3% and EBIT margin ~13.7%), signaling better pricing/mix and operating leverage. The main watch-out is some gross margin compression versus 2020 (despite higher operating profitability), and 2025 margin details aren’t provided, limiting visibility into whether 2024’s margin strength held.

Balance Sheet

The balance sheet looks conservatively financed with very low leverage across the period (debt-to-equity remained near zero in 2022–2024), and equity expanded steadily alongside asset growth (equity ~¥11.2B in 2020 to ~¥19.0B in 2025). Returns on equity were strong in 2023–2024 (~16.9%–19.4%), suggesting profitable reinvestment and efficient capital use. The only notable concern is 2025 shows higher total debt (¥1.07B) versus prior years, though it still appears manageable relative to the equity base.

Cash Flow

Operating cash flow is solid and improving over time (about ¥1.4B in 2020 to ~¥5.1B in 2025), supporting earnings quality and internal funding capacity. However, free cash flow is more volatile: positive in 2021–2024 but turned slightly negative in 2025 (about -¥0.11B), indicating a heavier investment year or working-capital pressure. While earlier years showed healthy conversion of earnings into free cash flow (e.g., 2022–2024 free cash flow at roughly half of net income), the 2025 dip reduces near-term cash flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.94B	34.77B	31.78B	29.02B	25.12B	21.59B
Gross Profit	13.80B	14.70B	13.19B	11.74B	9.67B	8.35B
EBITDA	5.76B	6.30B	5.86B	4.60B	3.08B	2.38B
Net Income	3.37B	3.38B	3.26B	2.46B	1.35B	879.02M
Balance Sheet
Total Assets	30.47B	33.61B	29.11B	25.84B	22.32B	21.20B
Cash, Cash Equivalents and Short-Term Investments	5.26B	4.32B	5.04B	3.82B	2.31B	2.16B
Total Debt	127.22M	1.07B	120.16M	163.76M	61.31M	561.98M
Total Liabilities	12.60B	14.62B	12.27B	11.31B	9.76B	9.45B
Stockholders Equity	17.87B	18.98B	16.83B	14.53B	12.56B	11.75B
Cash Flow
Free Cash Flow	0.00	-113.77M	1.99B	2.10B	1.24B	1.46B
Operating Cash Flow	0.00	5.05B	4.40B	3.94B	2.37B	2.62B
Investing Cash Flow	0.00	-5.25B	-2.17B	-1.84B	-1.12B	-1.00B
Financing Cash Flow	0.00	-526.11M	-1.01B	-585.12M	-1.11B	-770.89M

KANRO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1665.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2216, the sentiment is Negative. The current price of 1665 is above the 20-day moving average (MA) of 1483.60, above the 50-day MA of 1582.32, and below the 200-day MA of 1668.89, indicating a bearish trend. The MACD of -68.61 indicates Positive momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 54.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2216.

KANRO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2201	76 Outperform	¥237.57B	12.43	13.33%	3.47%	4.21%	23.86%
2207	75 Outperform	¥44.58B	14.40	―	1.51%	5.86%	57.87%
2209	75 Outperform	¥33.59B	13.70	―	1.23%	6.74%	29.20%
2208	72 Outperform	¥80.48B	15.26	―	1.55%	5.78%	14.23%
2216	69 Neutral	¥64.61B	17.77	―	4.63%	7.74%	0.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2211	49 Neutral	¥65.00B	32.01	―	1.14%	8.17%	10.65%

KANRO Co., Ltd. Corporate Events

KANRO Releases Supplementary Materials on FY2025 Financial Results and Market Trends

KANRO Co., Ltd. released supplementary materials detailing its financial results for the fiscal year ended December 31, 2025, including statements of income, multi-year financial indicators covering FY2022 to FY2026 forecasts, and market trend analysis. The disclosure, structured by quarter and half-year periods, is aimed at providing investors and stakeholders with a clearer view of performance, forward financial expectations, and evolving market conditions in the confectionery segment.

The most recent analyst rating on (JP:2216) stock is a Buy with a Yen1867.00 price target. To see the full list of analyst forecasts on KANRO Co., Ltd. stock, see the JP:2216 Stock Forecast page.

Kanro posts solid first consolidated results and forecasts steady growth for 2026

Kanro Inc. reported consolidated net sales of ¥34.8 billion and profit attributable to owners of parent of ¥3.4 billion for the fiscal year ended December 31, 2025, its first year of consolidated reporting. The company posted an operating margin of 13.5%, an equity ratio of 56.5%, and robust operating cash flow, despite significant investment outflows.

The confectioner implemented a three-for-one stock split in July 2025 and maintained shareholder returns with total dividends of roughly ¥1.4 billion, targeting a consolidated payout ratio just under 40%. For fiscal 2026, Kanro forecasts modest growth, with net sales rising 5% and profit attributable to owners of parent up 2.1%, signaling expectations of steady but not rapid expansion in its core business.

The most recent analyst rating on (JP:2216) stock is a Buy with a Yen1867.00 price target. To see the full list of analyst forecasts on KANRO Co., Ltd. stock, see the JP:2216 Stock Forecast page.