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

• Market Cap: ¥34.16B
• Dividend Yield: 0.85%
• Average Volume (3M): 9.84K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.25
• Revenue Growth: 13.43%
• EPS Growth: 60.07%
• Country: JP
• Employees: 828
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Food Confectioners
• EPS (TTM): 22.11
• Shares Outstanding: 11,990,000
• 10 Day Avg. Volume: 3,290
• 30 Day Avg. Volume: 9,843
• PEG Ratio: 0.00
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 64.93
• 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: 72 Outperform
• Price Target: ¥3,304.00 ▲(11.43%Upside)

Iwatsuka Confectionery Co., Ltd. showcases strong financial performance, which is the primary contributor to its stock score. The company's stable profitability and robust cash flow management provide a strong foundation. However, weak technical indicators and moderate valuation metrics weigh down the overall score. The absence of notable earnings call insights and corporate events means the score is primarily driven by financial performance and technical analysis.

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

Company Description

Iwatsuka Confectionery Co., Ltd. is a Japan-based company primarily engaged in the manufacture and sale of rice crackers and other confectionery products. The company operates in the food processing industry and is known for its wide range of rice-based snacks, which include traditional Japanese rice crackers, flavored senbei, and other types of snacks. Iwatsuka Confectionery Co., Ltd. is committed to delivering high-quality and innovative products that cater to the evolving tastes of consumers.

How the Company Makes Money

Iwatsuka Confectionery Co., Ltd. generates revenue primarily through the production and sale of its rice cracker products. The company's revenue model is based on direct sales to retailers and distributors, both domestically in Japan and through export markets. Key revenue streams include the sale of various types of rice crackers, which are distributed through multiple channels, including supermarkets, convenience stores, and online platforms. The company's earnings are also supported by its focus on product innovation and quality assurance, which helps in maintaining consumer loyalty and expanding its market presence. Additionally, Iwatsuka Confectionery may engage in strategic partnerships with retailers and distributors to enhance its product reach and market penetration.

Iwatsuka Confectionery Co., Ltd. Financial Statement Overview

Summary

Iwatsuka Confectionery Co., Ltd. demonstrates solid financial performance with consistent revenue growth and strong profitability. The company has efficient cost management, a strong equity ratio, and robust cash flow generation. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
24.22B	24.95B	22.00B	20.39B	18.04B	22.17B
	Gross Profit
6.68B	6.96B	5.76B	4.66B	4.26B	8.54B
	EBIT
657.72M	815.22M	603.26M	-213.56M	-326.86M	181.14M
	EBITDA
1.85B	5.52B	4.26B	6.93B	2.49B	3.71B
	Net Income Common Stockholders
2.71B	2.91B	1.96B	3.97B	828.07M	2.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.86B	4.06B	2.84B	4.54B	1.78B	1.27B
	Total Assets
90.21B	91.10B	85.75B	83.56B	96.28B	76.37B
	Total Debt
504.00M	405.20M	806.00M	1.21B	2.01B	2.02B
	Net Debt
-2.36B	-3.66B	-2.04B	-3.33B	230.32M	745.08M
	Total Liabilities
22.43B	23.15B	21.95B	21.49B	26.59B	20.32B
	Stockholders Equity
67.78B	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: 2965.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2965 is below the 20-day moving average (MA) of 2973.95, below the 50-day MA of 3024.12, and above the 200-day MA of 2703.29, indicating a neutral trend. The MACD of -33.19 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 is Neutral, 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	77 Outperform	¥65.90B	19.00		2.59%	11.18%	28.19%
2221	72 Outperform	¥34.16B	10.53		0.85%	13.43%	60.07%
2207	72 Outperform	¥34.11B	7.23		1.59%	15.08%	―
2209	69 Neutral	¥31.59B	14.34		1.49%	6.01%	14.07%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
2211	62 Neutral	¥60.21B	37.12		1.28%	3.75%	44.95%
2217	59 Neutral	¥33.70B	27.35		1.79%	0.62%	-32.02%