Iwatsuka Confectionery Co., Ltd. (2221) AI Stock Analysis

• Market Cap: ¥35.67B
• Dividend Yield: 0.81%
• Average Volume (3M): 4.64K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.23
• Revenue Growth: 15.24%
• EPS Growth: 43.88%
• Country: JP
• Employees: 828
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Food Confectioners
• EPS (TTM): 26.00
• Shares Outstanding: 11,990,000
• 10 Day Avg. Volume: 3,260
• 30 Day Avg. Volume: 4,640
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,322.00
• Price Target Upside: 7.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥3,322.00 ▲(7.51% Upside)

Iwatsuka Confectionery Co., Ltd. scores well due to its strong financial performance, underscored by revenue growth, profitability, and prudent financial management. The stock's valuation is attractive with a low P/E ratio. However, technical analysis presents mixed signals with no clear momentum, slightly lowering the overall score.

Iwatsuka Confectionery Co., Ltd. Business Overview & Revenue Model

Company Description

Iwatsuka Confectionery Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of rice crackers and other related confectionery products. Established in the food industry, the company has built a reputation for producing high-quality snacks that cater to a diverse range of palates. Iwatsuka Confectionery leverages traditional Japanese recipes alongside modern manufacturing techniques to offer a variety of products that appeal to both domestic and international markets.

How the Company Makes Money

Iwatsuka Confectionery Co., Ltd. generates revenue through the production and sale of its rice cracker and confectionery products. The company's primary revenue stream comes from its extensive product line, which includes various flavors and types of rice crackers. These products are distributed through multiple channels, including retail outlets, supermarkets, and online platforms, ensuring wide availability to consumers. Additionally, the company may engage in partnerships with other food manufacturers or distributors to expand its market reach. Factors such as brand reputation, product quality, and innovation in flavor and packaging contribute significantly to its earnings. While the company primarily serves the Japanese market, it also explores opportunities in international markets to diversify its revenue streams.

Iwatsuka Confectionery Co., Ltd. Financial Statement Overview

Summary

Iwatsuka Confectionery Co., Ltd. demonstrates solid financial performance with strong revenue growth, profitability, and efficient cash flow management. The company benefits from low leverage, financial stability, and a high equity ratio. However, there is room for improvement in operating efficiency and return on equity.

Income Statement

Iwatsuka Confectionery Co., Ltd. shows strong profitability with a consistent increase in total revenue over the years, marking a 13.4% growth from 2024 to 2025. The company has maintained solid gross and EBIT margins, indicating efficient cost management and operational effectiveness. The net profit margin also improved significantly, reaching 11.7% in 2025, which is a strong indicator of net profitability. However, the EBIT margin remains relatively modest, highlighting some potential inefficiencies in converting revenue into operating profit.

Balance Sheet

The balance sheet of Iwatsuka Confectionery Co., Ltd. is strong, with a high equity ratio of 74.6% in 2025, indicating financial stability and low leverage. The debt-to-equity ratio is minimal at 0.01, showcasing prudent financial management and low reliance on debt. Return on Equity (ROE) stands at a healthy 4.3%, although there is potential room for improvement in terms of generating higher returns on shareholders' equity.

Cash Flow

Cash flow analysis reveals robust financial health, with a substantial increase in free cash flow by 131.4% from 2024 to 2025. The operating cash flow to net income ratio is 1.35, reflecting efficient cash generation relative to net earnings. Free cash flow to net income ratio is 0.67, indicating a solid capacity to generate cash surplus after covering capital expenditures. These metrics emphasize strong cash flow management and the company's ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.95B	24.95B	22.00B	20.39B	18.04B	22.17B
Gross Profit	6.96B	6.96B	5.76B	4.66B	4.26B	8.54B
EBITDA	5.52B	5.52B	4.26B	6.93B	2.49B	3.71B
Net Income	2.91B	2.91B	1.96B	3.97B	828.07M	2.01B
Balance Sheet
Total Assets	91.10B	91.10B	85.75B	83.56B	96.28B	76.37B
Cash, Cash Equivalents and Short-Term Investments	4.06B	4.06B	2.84B	4.54B	1.78B	1.27B
Total Debt	405.20M	405.20M	806.00M	1.21B	2.01B	2.02B
Total Liabilities	23.15B	23.15B	21.95B	21.49B	26.59B	20.32B
Stockholders Equity	67.95B	67.95B	63.81B	62.06B	69.69B	56.05B
Cash Flow
Free Cash Flow	0.00	1.95B	842.78M	3.74B	662.41M	-2.43B
Operating Cash Flow	0.00	3.94B	2.76B	5.34B	2.38B	3.57B
Investing Cash Flow	0.00	-2.07B	-1.84B	-1.56B	-1.76B	-5.83B
Financing Cash Flow	0.00	-653.71M	-2.61B	-1.02B	-108.53M	1.77B

Iwatsuka Confectionery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3090.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2221, the sentiment is Positive. The current price of 3090 is above the 20-day moving average (MA) of 3023.15, above the 50-day MA of 2987.32, and above the 200-day MA of 2818.41, indicating a bullish trend. The MACD of 21.41 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2221.

Iwatsuka Confectionery Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2216	76 Outperform	¥90.82B	25.07		3.58%	8.76%	11.82%
2221	74 Outperform	¥35.67B	11.10		0.81%	15.24%	43.88%
2207	74 Outperform	¥36.22B	7.65		1.54%	12.80%	―
2209	73 Outperform	¥33.33B	15.01		1.22%	6.19%	7.92%
2211	65 Neutral	¥65.18B	39.27		1.18%	5.37%	-2.18%
2217	64 Neutral	¥32.62B	26.48		1.32%	0.62%	-32.02%
Sector *	63 Neutral	$20.54B	14.34	-2.77%	3.14%	2.08%	-6.12%