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

• Market Cap: ¥23.03B
• Dividend Yield: 1.72%
• Average Volume (3M): 19.07K
• Price to Earnings (P/E): 37.1
• Beta (1Y): 0.50
• Revenue Growth: -3.88%
• EPS Growth: -39.50%
• Country: JP
• Employees: 457
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): -2.60
• Shares Outstanding: 21,452,124
• 10 Day Avg. Volume: 18,760
• 30 Day Avg. Volume: 19,070
• PEG Ratio: -1.26
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 92.36
• 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: 64 Neutral
• Price Target: ¥1,339.00 ▲(15.13%Upside)

Rokko Butter Co., Ltd. shows strong financial stability and excellent cash flow management, which are the most significant strengths. However, the lack of revenue growth and low net profit margins pose challenges. Technical indicators provide mixed signals, and the valuation appears high, suggesting cautious optimism. The absence of earnings call and corporate events data limits further insights.

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 butter and other dairy products. Founded in Japan, the company operates in the food processing sector, offering a range of high-quality butter products that cater to both domestic and international markets. Rokko Butter Co. is known for its commitment to quality and traditional production methods, providing consumers with authentic and flavorful butter options.

How the Company Makes Money

Rokko Butter Co., Ltd. generates revenue through the production and sale of its dairy products, with butter being its flagship offering. The company sources raw dairy materials, which are processed in its facilities to produce butter and related products. Revenue streams include direct sales to retail outlets, wholesale distribution to restaurants and foodservice providers, and exports to international markets. The company may also engage in partnerships with other food producers and retailers to expand its market reach. By maintaining a strong brand presence and focusing on product quality, Rokko Butter Co. secures a stable customer base, contributing to its financial success.

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 gross profit margin is strong, but revenue growth is slightly negative, and net profit margins are low. The balance sheet shows moderate leverage, suggesting financial stability, though asset growth is 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
44.30B	42.92B	44.30B	41.92B	55.07B	54.95B
	Gross Profit
6.71B	8.31B	6.67B	6.47B	22.89B	22.46B
	EBIT
626.57M	1.87B	626.58M	345.78M	2.37B	1.94B
	EBITDA
2.88B	3.44B	2.88B	2.86B	6.39B	4.58B
	Net Income Common Stockholders
446.31M	1.04B	446.31M	219.96M	2.27B	956.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.33B	6.18B	6.33B	5.29B	7.68B	7.64B
	Total Assets
50.99B	51.40B	50.99B	51.42B	54.21B	57.00B
	Total Debt
8.16B	7.14B	8.16B	9.17B	11.18B	16.20B
	Net Debt
2.50B	964.42M	2.50B	3.88B	3.50B	8.56B
	Total Liabilities
20.89B	20.54B	20.89B	22.19B	24.51B	29.25B
	Stockholders Equity
30.10B	30.86B	30.10B	29.23B	29.70B	27.74B
Cash Flow		Free Cash Flow
4.49B	3.17B	2.73B	271.26M	3.76B	3.31B
	Operating Cash Flow
4.49B	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: Negative
• Last Price: 1163.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2266, the sentiment is Negative. The current price of 1163 is below the 20-day moving average (MA) of 1225.65, below the 50-day MA of 1252.82, and below the 200-day MA of 1316.65, indicating a bearish trend. The MACD of -17.05 indicates Positive momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 5.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2805	79 Outperform	¥82.91B	10.19		1.16%	-2.31%	12.63%
2270	78 Outperform	¥184.30B	13.25		2.93%	1.72%	-28.41%
2915	75 Outperform	¥28.71B	7.96		2.15%	3.36%	30.33%
Sector *	65 Neutral	$8.75B	15.13	4.69%	4.84%	3.64%	-2.51%
2266	64 Neutral	¥23.03B	37.07		1.72%	-3.88%	-39.50%
2831	64 Neutral	¥30.82B	12.53		1.83%	1.56%	40.56%
2264	63 Neutral	¥294.14B	51.34		2.71%	2.58%	-90.55%

Rokko Butter Co., Ltd. Corporate Events

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.