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

• Market Cap: ¥24.41B
• Dividend Yield: 1.57%
• Average Volume (3M): 26.51K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.51
• Revenue Growth: -1.14%
• EPS Growth: 3.35%
• Country: JP
• Employees: 457
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 16.00
• Shares Outstanding: 21,452,124
• 10 Day Avg. Volume: 26,910
• 30 Day Avg. Volume: 26,510
• PEG Ratio: 0.19
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 8.13
• 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: 62 Neutral
• Price Target: ¥1,336.00 ▲(6.37% Upside)

Rokko Butter Co., Ltd. has a stable financial foundation with strong cash flow management and moderate leverage, which are significant strengths. However, the high P/E ratio suggests potential overvaluation, and the technical indicators show a neutral trend, which tempers the overall score.

Positive Factors

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Balance Sheet Health

A low debt-to-equity ratio indicates moderate leverage, providing financial stability and reducing risk during economic fluctuations.

Gross Profit Margin

A strong gross profit margin suggests effective cost management, which is crucial for maintaining profitability and competitive pricing.

Negative Factors

Revenue Growth Decline

Declining revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term business expansion.

Net Profit Margin

A low net profit margin indicates higher relative expenses, which can limit profitability and reduce funds available for reinvestment.

Asset Growth Stagnation

Stagnant asset growth may hinder the company's ability to expand operations and improve market position, affecting long-term competitiveness.

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

Company Description

Rokko Butter Co., Ltd. (2266) is a prominent Japanese company specializing in the production and distribution of dairy products, particularly butter and margarine. Established in the early 20th century, the company has established itself as a key player in the food sector, catering to both consumer and industrial markets. Rokko Butter is known for its high-quality dairy offerings, focusing on innovation and sustainability in its production processes.

How the Company Makes Money

Rokko Butter Co., Ltd. generates revenue primarily through the sale of its dairy products, including butter, margarine, and related items. The company operates through various channels, including direct sales to retailers, food service providers, and large-scale distributors. Key revenue streams include consumer sales through supermarkets and grocery stores, as well as bulk sales to restaurants and food manufacturers. Partnerships with suppliers and distributors enhance its market reach, while the company's commitment to quality and brand reputation helps to maintain customer loyalty and drive sales growth.

Rokko Butter Co., Ltd. Financial Statement Overview

Summary

Rokko Butter Co., Ltd. presents a stable financial position with strong cash flow management and moderate debt levels. The company shows efficient cost management with a gross profit margin of 19.3%, but faces challenges in revenue growth and net profit margins. The balance sheet suggests moderate leverage, providing a solid foundation for potential growth, although asset growth has been stagnant.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.53B	42.92B	44.30B	41.92B	55.07B	54.95B
Gross Profit	3.83B	8.31B	6.67B	6.47B	22.89B	22.46B
EBITDA	1.32B	3.44B	2.88B	2.86B	6.39B	4.58B
Net Income	199.45M	1.04B	446.31M	219.96M	2.27B	956.78M
Balance Sheet
Total Assets	50.59B	51.40B	50.99B	51.42B	54.21B	57.00B
Cash, Cash Equivalents and Short-Term Investments	2.87B	6.18B	6.33B	5.29B	7.68B	7.64B
Total Debt	6.89B	7.14B	8.16B	9.17B	11.18B	16.20B
Total Liabilities	19.77B	20.54B	20.89B	22.19B	24.51B	29.25B
Stockholders Equity	30.83B	30.86B	30.10B	29.23B	29.70B	27.74B
Cash Flow
Free Cash Flow	0.00	3.17B	2.73B	271.26M	3.76B	3.31B
Operating Cash Flow	0.00	3.67B	3.24B	1.09B	5.73B	5.77B
Investing Cash Flow	0.00	-1.65B	-995.54M	-1.25B	-363.07M	-2.46B
Financing Cash Flow	0.00	-1.50B	-1.40B	-2.40B	-5.40B	-1.39B

Rokko Butter Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1256.00
• 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:2266, the sentiment is Positive. The current price of 1256 is above the 20-day moving average (MA) of 1199.75, above the 50-day MA of 1226.12, and above the 200-day MA of 1236.08, indicating a bullish trend. The MACD of 5.86 indicates Negative momentum. The RSI at 64.42 is Neutral, neither overbought nor oversold. The STOCH value of 90.40 is Negative, 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	72 Outperform	¥32.24B	12.14	―	2.20%	-0.25%	-41.09%
2805	70 Outperform	¥91.23B	11.12	―	1.33%	0.48%	-4.27%
2270	69 Neutral	¥208.01B	12.56	―	2.61%	0.32%	-20.60%
2264	65 Neutral	¥293.61B	39.42	―	2.48%	2.33%	-8.76%
2831	64 Neutral	¥30.73B	12.45	―	1.83%	0.16%	10.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2266	62 Neutral	¥24.41B	24.65	―	1.57%	-1.14%	3.35%

Rokko Butter Co., Ltd. Corporate Events

Rokko Butter Co., Ltd. Acquires Full Ownership of Mitsuya Group

Rokko Butter Co., Ltd. has announced its decision to acquire an additional 51% of Mitsuya Group Honsha Co., Ltd., making it a wholly-owned subsidiary. This acquisition aims to foster growth by leveraging synergies in branding, product development, and sales channels, as well as expanding into new markets and increasing overseas exports.

The most recent analyst rating on (JP:2266) stock is a Hold with a Yen1294.00 price target. To see the full list of analyst forecasts on Rokko Butter Co., Ltd. stock, see the JP:2266 Stock Forecast page.

Rokko Butter Co., Ltd. Shifts to Consolidated Financial Reporting

Rokko Butter Co., Ltd. announced its transition to consolidated financial statements starting in the fourth quarter of 2025 due to acquiring Mitsuya Group Honsha Co., Ltd. as a subsidiary. This strategic move aims to enhance financial transparency and streamline reporting by including results from Mitsuya and three other subsidiaries, with the company ceasing non-consolidated forecasts. The consolidated earnings forecast for the fiscal year ending December 31, 2025, includes net sales of 43,500 million yen and a profit attributable to owners of 1,200 million yen.

The most recent analyst rating on (JP:2266) stock is a Hold with a Yen1294.00 price target. To see the full list of analyst forecasts on Rokko Butter Co., Ltd. stock, see the JP:2266 Stock Forecast page.

Rokko Butter Co., Ltd. Reports Decline in First Half 2025 Financial Results

Rokko Butter Co., Ltd. reported a decline in its financial performance for the first half of 2025, with net sales dropping by 3.8% and profits significantly decreasing compared to the previous year. Despite the downturn, the company maintains its dividend forecast and is making adjustments to its accounting policies, which may impact future financial results.

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.