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

• Market Cap: ¥63.98B
• Dividend Yield: 2.67%
• Average Volume (3M): 39.10K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.58
• Revenue Growth: 11.18%
• EPS Growth: 28.19%
• Country: JP
• Employees: 678
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Food Confectioners
• EPS (TTM): 235.80
• Shares Outstanding: 15,315,604
• 10 Day Avg. Volume: 29,880
• 30 Day Avg. Volume: 39,100
• PEG Ratio: 0.21
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.41
• 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: 77 Outperform
• Price Target: ―

KANRO Co., Ltd. scores well due to strong financial performance marked by improving profit margins and robust cash flow. The technical analysis shows positive momentum, though caution is advised due to potential overbought conditions. The valuation is reasonable, providing a balanced outlook.

KANRO Co., Ltd. Business Overview & Revenue Model

Company Description

KANRO Co., Ltd. (2216) is a renowned Japanese company primarily engaged in the production and sale of confectionery products. Established in 1950, the company is well-known for its wide range of candies, including hard candies, gummies, and throat lozenges. KANRO Co., Ltd. operates within the food and beverage sector, with a strong focus on creating innovative and high-quality sweet products that cater to the diverse tastes of consumers both domestically and internationally.

How the Company Makes Money

KANRO Co., Ltd. generates revenue primarily through the production and sale of its diverse confectionery product lineup. The company's key revenue streams include domestic sales in Japan through retail channels such as supermarkets, convenience stores, and online platforms. Additionally, KANRO Co., Ltd. benefits from export sales, as its products have a significant international presence. Partnerships with distributors and retailers play a crucial role in expanding the company's market reach. Furthermore, KANRO Co., Ltd. invests in marketing and brand promotion to enhance its product visibility and consumer loyalty, which in turn drives sales growth.

KANRO Co., Ltd. Financial Statement Overview

Summary

KANRO Co., Ltd. shows strong financial performance with consistent revenue growth, improving profit margins, and low financial leverage. The company demonstrates effective cost management and profitability, supported by strong cash flow generation and liquidity.

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
	EBIT
4.28B	3.39B	1.93B	1.25B	836.50M
	EBITDA
5.86B	4.60B	3.08B	2.38B	2.02B
	Net Income Common Stockholders
3.26B	2.46B	1.35B	879.02M	610.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.04B	3.82B	2.31B	2.16B	1.31B
	Total Assets
29.11B	25.84B	22.32B	21.20B	19.78B
	Total Debt
120.16M	163.76M	61.31M	561.98M	1.10B
	Net Debt
-4.86B	-3.66B	-2.25B	-1.60B	-213.56M
	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: 4350.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 4350 is above the 20-day moving average (MA) of 4174.75, above the 50-day MA of 3888.16, and above the 200-day MA of 3423.35, indicating a bullish trend. The MACD of 150.46 indicates Negative momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 43.99 is Neutral, 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	77 Outperform	¥63.98B	18.45		2.67%	11.18%	28.19%
2208	76 Outperform	¥63.23B	11.39		0.38%	9.41%	80.83%
2207	73 Outperform	¥33.97B	7.20		1.59%	15.08%	―
2221	72 Outperform	¥34.57B	10.66		0.84%	13.43%	60.07%
Sector *	65 Neutral	$8.82B	14.91	4.71%	6.22%	3.60%	-2.66%
2211	62 Neutral	¥60.44B	37.27		1.28%	3.75%	44.95%
2217	59 Neutral	¥33.17B	26.92		1.82%	0.62%	-32.02%

KANRO Co., Ltd. Corporate Events

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.

KANRO Co., Ltd. Reports Strong First Quarter Financial Results for 2025

KANRO Co., Ltd. reported a 7.8% increase in net sales for the first quarter of 2025 compared to the previous year, with operating and ordinary profits also experiencing significant growth. The company’s financial position remains strong with a notable equity ratio improvement, indicating robust operational performance and stability.