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

• Market Cap: ¥54.23B
• Dividend Yield: 4.63%
• Average Volume (3M): 156.24K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.62
• 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: ¥1,310.00 ▼(-21.32% 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

Profitability Trend

KANRO has delivered a sustained step-up in net income into 2025 alongside steady revenue growth, reflecting durable improvements in pricing, mix and operating leverage. This strengthens long-term earnings power and supports reinvestment capacity and shareholder distributions.

Conservative Balance Sheet

Very low historical leverage and steady equity expansion provide financial resilience and optionality. A conservative capital structure supports funding of working capital, targeted investments, and payout policies without pressing refinancing needs in most downturn scenarios.

Operating Cash Flow Strength

Rising operating cash flow demonstrates durable cash generation from core confectionery operations, underpinning internal funding for growth, capex and dividends. Reliable OCF enhances earnings quality and reduces dependence on external financing over the medium term.

Negative Factors

Free Cash Flow Volatility

A move to slightly negative free cash flow in 2025 signals that investment or working-capital demands can outstrip cash generation in some years. Persistent FCF volatility undermines flexibility to sustain capex, dividends or M&A without raising external funds.

Margin Pressure / Visibility

Evidence of gross margin compression since 2020 raises concerns about structural cost pressure or tougher pricing environments. Coupled with limited disclosure on 2025 margin composition, this reduces confidence in sustaining recent margin gains long term.

Rising Debt in 2025

An uptick in total debt after years of near-zero leverage signals a shift in financing mix. If higher indebtedness persists while free cash flow is uneven, interest and principal obligations could constrain flexibility and elevate funding risk 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 primarily makes money by selling branded confectionery products (especially candy) that it plans and develops, manufactures (internally and/or via contracted production where applicable), and distributes to the market. Its core revenue stream is wholesale and retail-channel sales of packaged sweets to distributors and retailers (e.g., supermarkets, convenience stores, drugstores, and other consumer outlets), with revenue recognized from product shipments/sales. Additional revenue may come from supplying products for specific channels or limited-edition/seasonal offerings that support higher turnover and product mix; however, detailed stream-by-stream revenue breakdowns and material partnership arrangements are null.

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	13.00B	11.56B	9.50B	8.18B
EBITDA	6.18B	6.30B	5.79B	4.60B	3.08B	2.37B
Net Income	3.37B	3.38B	3.26B	2.46B	1.35B	879.02M
Balance Sheet
Total Assets	30.47B	33.61B	29.19B	25.94B	22.40B	21.29B
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	12.36B	11.40B	9.85B	9.53B
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	2.31B	1.34B	1.53B
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: 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 Negative. The current price of 1665 is above the 20-day moving average (MA) of 1282.90, above the 50-day MA of 1475.96, and above the 200-day MA of 1664.79, indicating a bearish trend. The MACD of -74.16 indicates Negative momentum. The RSI at 33.15 is Neutral, neither overbought nor oversold. The STOCH value of 56.13 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	¥219.44B	12.35	13.33%	3.47%	4.21%	23.86%
2207	75 Outperform	¥47.31B	13.94	―	1.51%	5.86%	57.87%
2209	75 Outperform	¥31.82B	10.02	―	1.23%	6.74%	29.20%
2208	72 Outperform	¥77.36B	6.88	―	1.55%	5.78%	14.23%
2216	69 Neutral	¥54.23B	20.67	―	4.63%	7.74%	0.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2211	49 Neutral	¥63.25B	32.06	―	1.14%	8.17%	10.65%

KANRO Co., Ltd. Corporate Events

Kanro Shifts to Consolidated Reporting as It Sets FY2026 Outlook

Kanro Inc. presented its FY2025 results and outlined its full-year consolidated forecast and management policy for FY2026, marking a shift to consolidated reporting that now incorporates Kanro America Inc. While the U.S. unit’s contribution remains limited, the move to consolidated financials signals a step toward greater transparency and potential future expansion of its international operations.

The company compared FY2025 performance against non-consolidated FY2024 figures to maintain consistency during the transition period. By framing forecasts and policies within this new reporting structure, Kanro is positioning stakeholders to better track its performance as it gradually integrates overseas business into its core financial reporting and strategic planning.

The most recent analyst rating on (JP:2216) stock is a Hold with a Yen1315.00 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 Guides for Modest 2026 Growth

Kanro Inc. reported consolidated net sales of ¥34.8 billion and profit attributable to owners of parent of ¥3.38 billion for the fiscal year ended December 31, 2025, its first year of consolidated reporting. Profitability metrics were solid, with operating margin at 13.5%, return on equity at 17.8% and an equity ratio of 56.5%, supported by positive operating cash flow of ¥5.05 billion despite net cash outflows from investing and financing activities.

The company maintained a robust shareholder return policy, with FY2025 dividends totaling the equivalent of ¥96 per share on a pre-split basis and a consolidated payout ratio of 39.9%, while implementing a three-for-one stock split effective July 1, 2025. For FY2026, Kanro forecasts modest growth, guiding for a 5.0% rise in net sales to ¥36.5 billion and a 2.1% increase in profit attributable to owners of parent to ¥3.45 billion, signaling expectations of steady but moderate earnings expansion.

The most recent analyst rating on (JP:2216) stock is a Hold with a Yen1454.00 price target. To see the full list of analyst forecasts on KANRO Co., Ltd. stock, see the JP:2216 Stock Forecast page.

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.