Rokko Butter Co., Ltd. (2266) AI Stock Analysis

• Market Cap: ¥24.43B
• Dividend Yield: 1.58%
• Average Volume (3M): 24.53K
• Price to Earnings (P/E): 39.3
• Beta (1Y): 0.52
• Revenue Growth: -3.88%
• EPS Growth: -39.50%
• Country: JP
• Employees: 457
• Sector: Consumer Defensive
• Sector Strength: 65
• Industry: Packaged Foods
• EPS (TTM): -2.60
• Shares Outstanding: 21,452,124
• 10 Day Avg. Volume: 31,110
• 30 Day Avg. Volume: 24,533
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,339.00
• Price Target Upside: 6.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥1,354.00 ▲(7.55% Upside)

Rokko Butter Co., Ltd. scores a 66, driven primarily by its stable financial performance and strong cash flow management. However, the stock's valuation appears high, limiting its attractiveness. Technical indicators are mixed, suggesting neutral market sentiment. The absence of earnings call insights and corporate events means these factors did not influence the score.

Rokko Butter Co., Ltd. Business Overview & Revenue Model

Company Description

Rokko Butter Co., Ltd. (2266) is a Japanese company primarily engaged in the production and sale of dairy products. The company specializes in manufacturing butter and margarine, catering to both consumer and industrial markets. With a focus on quality and innovation, Rokko Butter Co., Ltd. offers a range of products that meet diverse customer needs, while maintaining a strong presence in Japan's food industry.

How the Company Makes Money

Rokko Butter Co., Ltd. generates revenue through the sale of its dairy products, primarily butter and margarine. The company's revenue streams include retail sales to consumers via supermarkets and grocery stores, as well as wholesale distribution to food service businesses and industrial clients. Rokko Butter Co., Ltd. may also engage in partnerships or alliances with other food manufacturers or distributors to expand its market reach and enhance its product offerings. Additionally, the company might explore export opportunities to international markets, leveraging its established brand reputation for high-quality dairy products.

Rokko Butter Co., Ltd. Financial Statement Overview

Summary

Rokko Butter Co., Ltd. demonstrates strong cash flow management and moderate debt levels. The company has efficient cost management but faces challenges in improving revenue growth and net profit margins. The balance sheet suggests moderate leverage, providing a solid foundation for potential growth despite stagnant asset growth.

Income Statement

Rokko Butter Co., Ltd. shows a strong gross profit margin of 19.3% in the latest year, indicating effective management of production costs. However, the net profit margin is lower at 2.4%, suggesting higher relative expenses or other financial obligations impacting the net income. The EBIT margin of 4.3% and EBITDA margin of 8% suggest reasonable operating efficiency. The revenue growth rate is negative at -3.1%, indicating a slight decline compared to the previous year, which could be a concern if it continues.

Balance Sheet

The company's balance sheet reflects a healthy debt-to-equity ratio of 0.23, which implies moderate leverage and potential financial stability. The return on equity is modest at 3.4%, indicating room for improved profitability from shareholder funds. An equity ratio of 60.1% showcases a strong reliance on equity financing, providing a buffer against potential downturns. However, declining total assets and equity over the years may indicate challenges in asset growth.

Cash Flow

Rokko Butter Co., Ltd. demonstrates robust cash flow management with a free cash flow growth rate of 16.1%, highlighting efficient capital expenditure and cash generation strategies. The operating cash flow to net income ratio of 3.5 suggests strong operational cash generation relative to net income. The free cash flow to net income ratio is notably high at 3.0, indicating effective conversion of net income into free cash flow, enhancing financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.92B	44.30B	41.92B	55.07B	54.95B
Gross Profit	8.31B	6.67B	6.47B	22.89B	22.46B
EBITDA	3.44B	2.88B	2.86B	6.39B	4.58B
Net Income	1.04B	446.31M	219.96M	2.27B	956.78M
Balance Sheet
Total Assets	51.40B	50.99B	51.42B	54.21B	57.00B
Cash, Cash Equivalents and Short-Term Investments	6.18B	6.33B	5.29B	7.68B	7.64B
Total Debt	7.14B	8.16B	9.17B	11.18B	16.20B
Total Liabilities	20.54B	20.89B	22.19B	24.51B	29.25B
Stockholders Equity	30.86B	30.10B	29.23B	29.70B	27.74B
Cash Flow
Free Cash Flow	3.17B	2.73B	271.26M	3.76B	3.31B
Operating Cash Flow	3.67B	3.24B	1.09B	5.73B	5.77B
Investing Cash Flow	-1.65B	-995.54M	-1.25B	-363.07M	-2.46B
Financing Cash Flow	-1.50B	-1.40B	-2.40B	-5.40B	-1.39B

Rokko Butter Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1259.00
• 50DMA: Positive
• 100DMA: Positive
• 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:2266, the sentiment is Positive. The current price of 1259 is above the 20-day moving average (MA) of 1257.00, above the 50-day MA of 1239.40, and below the 200-day MA of 1277.34, indicating a neutral trend. The MACD of 1.05 indicates Positive momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 47.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2266.

Rokko Butter Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2915	80 Outperform	¥30.96B	8.58		2.00%	3.36%	29.57%
2805	78 Outperform	¥79.40B	10.48		1.82%	-0.76%	-8.38%
2270	72 Outperform	¥196.59B	14.14		2.75%	1.72%	-28.42%
2831	68 Neutral	¥30.96B	12.59		1.67%	1.56%	40.56%
2266	66 Neutral	¥24.43B	39.33		1.58%	-3.88%	-39.50%
Sector *	63 Neutral	$20.31B	12.53	-7.33%	3.14%	2.92%	-10.02%
2264	59 Neutral	¥296.27B	51.71		2.69%	2.58%	-90.84%

Rokko Butter Co., Ltd. Corporate Events

Rokko Butter Co., Ltd. Revises Interim Earnings Forecasts

Rokko Butter Co., Ltd. has revised its earnings forecasts for the first half of the fiscal year ending December 31, 2025, due to lower-than-expected sales of cheese products. Despite a decrease in net sales, the company anticipates higher operating, ordinary, and interim net profits due to postponed expenses and favorable exchange rates. The full-year forecasts remain unchanged due to economic uncertainties.

Rokko Butter Co., Ltd. Reports Significant Q1 2025 Financial Decline

Rokko Butter Co., Ltd. reported a significant decline in its financial performance for the first quarter of 2025, with net sales dropping by 6.6% and operating profit plummeting by 90.1% compared to the same period in 2024. Despite this downturn, the company maintains its forecast for the fiscal year ending December 31, 2025, with slight growth in net sales but a substantial decrease in profits, indicating ongoing challenges in its operational efficiency and market conditions.

Rokko Butter Co., Ltd. Reports Deferred Income Tax Gain

Rokko Butter Co., Ltd. has announced a significant financial update, recording a deferred income tax gain of ¥450,978,000 for the first quarter of 2025. This adjustment reflects the company’s assessment of future taxable income and the recoverability of deferred tax assets, indicating a positive impact on its financial performance.