Kameda Seika Co., Ltd. (2220) AI Stock Analysis

• Market Cap: ¥81.49B
• Dividend Yield: 1.47%
• Average Volume (3M): 53.38K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.21
• Revenue Growth: 20.44%
• EPS Growth: 1199.18%
• Country: JP
• Employees: 4,040
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 14.05
• Shares Outstanding: 22,318,650
• 10 Day Avg. Volume: 46,020
• 30 Day Avg. Volume: 53,380
• PEG Ratio: 0.11
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 53.36
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥4,682.00 ▲(21.14% Upside)

Kameda Seika Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability. The valuation is attractive with a low P/E ratio, suggesting potential undervaluation. Technical analysis indicates neutral momentum, with no significant bullish or bearish signals. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, strengthening the company's position in the snack food industry.

Strategic Acquisition

The acquisition of TH FOODS, INC. enhances Kameda Seika's operational control and market influence, potentially boosting long-term financial performance.

Profitability Improvement

Improved profitability through increased net profit margin reflects effective cost management and operational efficiency, supporting sustainable growth.

Negative Factors

Free Cash Flow Concerns

Decreased free cash flow due to high capital expenditures may limit financial flexibility and impact the company's ability to invest in growth opportunities.

Net Income Growth Adjustment

The adjustment in net income growth expectations may impact stakeholder confidence and suggests potential challenges in maintaining previous growth forecasts.

Ordinary Income Decline

A significant decline in ordinary income could indicate underlying operational challenges, potentially affecting long-term profitability and stability.

Kameda Seika Co., Ltd. Business Overview & Revenue Model

Company Description

Kameda Seika Co.,Ltd. manufactures and sells rice crackers and snacks in Japan. It offers food, preservation food, low-protein rice, easy-to-eat rice porridge, rice based food, and food supplement products; and operates Kakitane Kitchen, a specialty shop for souvenir and gift products, as well as produces, processes and sells agricultural products. The company also imports and exports food products. In addition, it provides freight transportation services; and warehousing services, as well as engages in selling and repairing automobiles. The company offers its products under the KAMEDA no Kaki no Tane, Happy Turn, Usuyaki, KAMEDA no Magari Senbei, Potapota Yaki, Soft Salad, Teshioya, Waza no Kodawari, Katabutsu, HaiHain, Arare Toyosu, Edo Sen Sharaku, and Nikko Mochi Honpo brands. It sells its products through supermarkets; convenience, department, and drug stores; and discount and 100-yen shops. Kameda Seika Co.,Ltd. was founded in 1946 and is headquartered in Niigata, Japan.

How the Company Makes Money

Kameda Seika Co., Ltd. generates revenue through the sale of its wide range of snack products, primarily focusing on rice crackers. The company employs a multi-channel distribution strategy, selling its products through supermarkets, convenience stores, and online platforms, which contributes to its broad market reach. Key revenue streams include both domestic sales in Japan and exports to international markets, where the company has established a growing presence. Additionally, Kameda Seika engages in promotional partnerships and collaborations with other brands, enhancing its visibility and sales. The company's commitment to quality and innovation, along with effective marketing strategies, further supports its financial performance.

Kameda Seika Co., Ltd. Financial Statement Overview

Summary

Kameda Seika Co., Ltd. exhibits solid financial health with robust revenue growth and improved profitability. The balance sheet is strong, characterized by moderate leverage and high equity. While operating cash flow generation is strong, the focus should be on maximizing free cash flow efficiency.

Income Statement

Kameda Seika Co., Ltd. shows strong revenue growth with an increase from ¥95.53 billion in 2024 to ¥103.26 billion in 2025, a growth rate of 8.1%. The gross profit margin improved slightly to 27.2%, reflecting efficient cost management. Net profit margin increased to 5.2%, indicating improved profitability. The EBIT and EBITDA margins are stable, showing consistent operational efficiency.

Balance Sheet

The company's balance sheet is robust with a strong equity base, as indicated by an equity ratio of 61%. The debt-to-equity ratio is manageable at 0.33, suggesting moderate leverage. Return on Equity (ROE) increased to 7.2%, demonstrating effective use of equity to generate profit. The company maintains a healthy liquidity position with a good cash and short-term investments balance.

Cash Flow

Operating cash flow remains strong at ¥9.44 billion, although free cash flow decreased to ¥1.54 billion due to higher capital expenditures. The operating cash flow to net income ratio of 1.74 indicates strong cash generation capability relative to net income. The company needs to focus on improving free cash flow to net income conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.07B	103.26B	95.53B	94.99B	85.16B	103.31B
Gross Profit	31.05B	28.07B	25.77B	24.53B	23.88B	44.63B
EBITDA	34.99B	12.57B	11.38B	9.09B	11.39B	11.10B
Net Income	26.21B	5.42B	2.26B	1.89B	4.42B	4.76B
Balance Sheet
Total Assets	167.05B	123.86B	120.51B	111.18B	102.95B	92.89B
Cash, Cash Equivalents and Short-Term Investments	16.93B	10.10B	9.22B	8.28B	6.87B	6.51B
Total Debt	46.03B	24.72B	23.78B	23.52B	19.12B	15.67B
Total Liabilities	71.52B	44.95B	46.79B	43.19B	37.23B	32.99B
Stockholders Equity	92.58B	75.59B	69.94B	64.86B	63.42B	58.22B
Cash Flow
Free Cash Flow	0.00	1.54B	1.96B	534.00M	-236.00M	2.58B
Operating Cash Flow	0.00	9.44B	9.73B	8.29B	8.30B	8.67B
Investing Cash Flow	0.00	-7.83B	-8.14B	-8.44B	-9.84B	-6.34B
Financing Cash Flow	0.00	-1.22B	-1.25B	972.00M	1.20B	-257.00M

Kameda Seika Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3865.00
• 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:2220, the sentiment is Negative. The current price of 3865 is below the 20-day moving average (MA) of 3941.00, below the 50-day MA of 3927.40, and below the 200-day MA of 3978.69, indicating a bearish trend. The MACD of -19.61 indicates Positive momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 45.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2220.

Kameda Seika Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2220	74 Outperform	¥81.49B	3.04	―	1.47%	20.44%	1199.18%
2805	70 Outperform	¥101.36B	12.42	―	1.09%	0.48%	-4.27%
2811	66 Neutral	¥230.62B	19.82	―	2.11%	3.69%	-50.13%
2264	65 Neutral	¥327.76B	29.55	―	2.44%	2.33%	-8.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2206	62 Neutral	¥352.38B	48.87	2.66%	1.66%	8.40%	-23.50%
2226	61 Neutral	¥49.08B	22.30	―	1.20%	3.71%	-4.44%

Kameda Seika Co., Ltd. Corporate Events

Kameda Seika Updates Growth Strategy with Focus on U.S. Expansion

Kameda Seika Co., Ltd. has updated its Medium-to-Long-Term Growth Strategy 2030, emphasizing the importance of the United States for its overseas expansion. The company has made TH FOODS, INC. a consolidated subsidiary and revised its growth strategy in North America. In response to significant changes in the business environment, including rising raw rice prices, Kameda Seika is also reviewing its domestic business plans. The updated strategy includes revised financial targets for 2030, aiming for increased net sales and adjusted operating profit.

Kameda Seika Reports Strong Financial Growth and Strategic Subsidiary Changes

Kameda Seika Co., Ltd. reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 35.4% year-on-year to ¥65,767 million. The company’s net income attributable to owners of the parent surged to ¥22,283 million, reflecting a substantial improvement from the previous year. The company also announced changes in its subsidiary structure, including the inclusion of TH FOODS, INC., and Watch City Properties, LLC., and the exclusion of Mary’s Gone Crackers, Inc., which may impact its strategic positioning and operational focus.