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

• Market Cap: ¥38.68B
• Dividend Yield: 0.84%
• Average Volume (3M): 5.66K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.22
• Revenue Growth: 15.03%
• EPS Growth: -26.43%
• Country: JP
• Employees: 828
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 54.13
• Shares Outstanding: 11,990,000
• 10 Day Avg. Volume: 7,010
• 30 Day Avg. Volume: 5,663
• PEG Ratio: 0.17
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 15.12
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,605.00 ▲(18.59% Upside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

Iwatsuka Confectionery Co., Ltd. has a strong financial foundation with consistent revenue growth and profitability, contributing significantly to the overall score. However, technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is reasonable, suggesting potential undervaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance sheet strength

A 74.6% equity ratio and almost zero leverage give durable financial flexibility. Low debt reduces refinancing and interest risk, enabling steady operations, funding for capex or dividends, and resilience to commodity cost swings over the next several quarters.

Cash generation

A 131.4% jump in free cash flow and OCF exceeding net income demonstrate strong cash conversion. Reliable cash generation supports reinvestment, working capital needs, and optional shareholder returns while lowering dependence on external financing for growth.

Revenue and margin trends

Sustained revenue growth with improved net margin to 11.7% reflects resilient product demand and effective cost control. This combination underpins longer-term earnings durability and better cash flow potential in Japan's packaged snack market.

Negative Factors

EPS decline

Reported EPS fell about 14.7% despite revenue gains, indicating per‑share earnings volatility. Persistent EPS contraction can limit dividend growth and investor returns, and suggests underlying issues (non-operating items or share-base changes) that need resolution for long-term confidence.

Modest ROE

A 4.3% ROE is modest given a strong equity base, signaling limited ability to convert capital into high returns. Over months, low ROE can constrain shareholder value creation unless management improves asset efficiency or raises operating profitability.

Operating margin pressure

The firm's EBIT margin remains relatively modest, limiting operating leverage. This reduces buffer against rising input costs (e.g., rice, packaging) and curtails internal funding for strategic initiatives, making sustained margin improvement critical for durable profit growth.

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

Company Description

Iwatsuka Confectionery Co., Ltd. manufactures and sells rice crackers in Japan. It offers black soybean rice crackers; vegetable rice crackers with carrot, cabbage, and spinach; fish rice crackers with domestic sardine powder and carrot; quick-dissolving crackers; and rice crackers with soy sauce, roasted salt, and sugar coating. The company was formerly known as Iwatsuka Nosan Kakojo Co., Ltd. and changed its name to Iwatsuka Confectionery Co., Ltd. in 1960. Iwatsuka Confectionery Co., Ltd. was founded in 1947 and is headquartered in Nagaoka, Japan.

How the Company Makes Money

Iwatsuka Confectionery makes money mainly by selling branded packaged rice-cracker snack products to the Japanese domestic market. Revenue is generated from (1) wholesale shipments of its products to retailers and distributors (e.g., supermarkets, convenience stores, drugstores, and other food retailers) and (2) direct sales arrangements where applicable, with pricing based on unit volumes and product mix across its portfolio of rice crackers and snack items. Earnings are influenced by repeat consumer demand for established brands, new product launches and seasonal/limited offerings that support volumes, and the company’s ability to manage manufacturing costs (especially rice and other raw materials), packaging, and logistics. Specific details on material partnerships, customer concentration, licensing, or non-core revenue streams are null.

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 maintains robust margins and effective cost management. The balance sheet shows financial stability with low leverage, and cash flow analysis indicates strong cash generation capabilities. 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	26.11B	24.95B	22.00B	20.39B	18.04B	22.17B
Gross Profit	7.12B	6.86B	5.68B	4.57B	4.18B	8.47B
EBITDA	2.44B	2.40B	2.04B	1.14B	936.84M	1.04B
Net Income	2.86B	2.91B	1.96B	3.97B	828.07M	2.01B
Balance Sheet
Total Assets	94.77B	91.10B	85.75B	83.56B	96.28B	76.37B
Cash, Cash Equivalents and Short-Term Investments	3.31B	4.06B	2.84B	4.54B	1.78B	1.27B
Total Debt	796.16M	536.01M	862.12M	1.26B	2.09B	2.10B
Total Liabilities	24.40B	23.15B	21.95B	21.49B	26.59B	20.32B
Stockholders Equity	70.37B	67.95B	63.81B	62.06B	69.69B	56.05B
Cash Flow
Free Cash Flow	0.00	1.95B	885.97M	3.79B	684.21M	-2.41B
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: 3040.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3040 is below the 20-day moving average (MA) of 3297.75, below the 50-day MA of 3158.40, and below the 200-day MA of 3050.77, indicating a bullish trend. The MACD of 38.22 indicates Positive momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 88.41 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
2201	76 Outperform	¥221.87B	12.35	13.33%	3.47%	4.21%	23.86%
2209	75 Outperform	¥32.28B	10.02	―	1.23%	6.74%	29.20%
2208	72 Outperform	¥77.96B	6.88	―	1.55%	5.78%	14.23%
2216	69 Neutral	¥56.95B	17.25	―	4.63%	7.74%	0.96%
2221	66 Neutral	¥38.68B	14.06	―	0.84%	15.03%	-26.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2211	49 Neutral	¥63.41B	14.49	―	1.14%	8.17%	10.65%