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

• Market Cap: ¥23.38B
• Dividend Yield: 1.61%
• Average Volume (3M): 26.51K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.52
• Revenue Growth: -1.14%
• EPS Growth: 3.35%
• Country: JP
• Employees: 457
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 27.36
• Shares Outstanding: 21,452,124
• 10 Day Avg. Volume: 26,910
• 30 Day Avg. Volume: 26,510
• PEG Ratio: 0.37
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -11.34
• 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: 60 Neutral
• Price Target: ¥1,285.00 ▲(7.44% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weak 2025 cash conversion (negative operating and free cash flow despite positive earnings), which outweighs otherwise improving profitability and a generally solid balance sheet. Technical indicators are moderately supportive with the stock above key moving averages and positive MACD, while valuation looks broadly fair with a modest dividend yield.

Positive Factors

Conservative balance sheet

A strong equity base and historically moderate leverage provide financial flexibility for capital spending, working-capital swings, or downturns. This conservatism supports durability in a packaged foods business and reduces refinancing and solvency risk over the medium term.

Earnings recovery and revenue stability

The company has demonstrated resilience, recovering earnings meaningfully from the 2022 trough while maintaining broadly stable revenue. That ability to regain profitability indicates operational adaptability and supports sustainable earnings potential over the next several quarters.

Prior strong cash generation (pre-2025)

Consistent operating and free cash flow in 2023–2024 shows the business can convert profits to cash under normal conditions. If the 2025 weakness is temporary, the historical cash conversion track record supports medium-term funding self-sufficiency and reinvestment capacity.

Negative Factors

Weak 2025 cash conversion

Negative operating and free cash flow in 2025 despite reported net income signals cash conversion issues that undermine earnings quality. Persistent weak cash generation would constrain capex, dividends or debt servicing and raise the risk of requiring external funding within months to a couple years.

Renewed uptick in borrowing

An increase in borrowings after a period of lower debt elevates leverage and interest obligations. If higher debt persists while cash generation remains weak, financial flexibility will be reduced and refinancing or cost-of-debt exposure could pressure margins and investment plans over the medium term.

Margin volatility and EBIT softness

A meaningful drop in EBIT year-over-year highlights margin sensitivity and operational volatility. Unstable operating profits complicate forecasting, weaken free cash flow resilience, and increase execution risk for sustaining investments or dividends across 2–6 month horizons if cost or pricing pressures continue.

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

Company Description

Rokko Butter Co., Ltd. manufactures and sells food products in Japan. It offers cheese, nuts, desserts, and chocolate products under the QBB brand. The company was formerly known as peace Oil Industries Co., Ltd. and changed its name to Rokko Butter Co., Ltd. in July 1954. Rokko Butter Co., Ltd. was incorporated in 1948 and is headquartered in Kobe, Japan.

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

Earnings recovered meaningfully from the 2022 trough and the balance sheet remains conservatively positioned, but 2025 cash generation is a major concern with negative operating cash flow and free cash flow despite positive net income, raising quality-of-earnings and near-term funding-risk questions. A modest uptick in debt in 2025 also bears watching.

Income Statement

Revenue has been broadly stable from 2020–2025, with a small dip in 2024 and a slight rebound in 2025. Profitability improved meaningfully off the 2022 trough (net income rising from 0.22B in 2022 to 1.49B in 2025), but operating profit softened in 2025 versus 2024 (EBIT down from 1.87B to 1.44B). Overall, the company shows recovery and resilience, but margins and earnings power appear somewhat volatile year-to-year.

Balance Sheet

The balance sheet looks conservatively positioned for a packaged foods business, supported by a solid equity base (equity of 33.3B in 2025 vs. debt of 11.2B). Leverage has generally been moderate (debt-to-equity around 0.23–0.31 in 2022–2024), though total debt increased in 2025 versus 2024. Asset base has also expanded (assets rising to 60.9B in 2025), but the key watch item is the renewed uptick in borrowing after a lower-debt 2024.

Cash Flow

Cash generation is the main concern: 2025 shows negative operating cash flow (-1.67B) and negative free cash flow (-2.06B) despite positive net income (1.49B), indicating weaker cash conversion in the most recent year. Prior years (2023–2024) were healthy with solid positive operating and free cash flow, so the 2025 reversal may be timing/working-capital related, but it still raises near-term quality-of-earnings and funding-risk questions if it persists.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.53B	43.29B	42.92B	44.30B	41.92B	55.07B
Gross Profit	3.83B	8.39B	8.31B	6.67B	6.47B	22.89B
EBITDA	1.32B	3.42B	3.44B	2.88B	2.86B	6.39B
Net Income	199.45M	1.49B	1.04B	446.31M	219.96M	2.27B
Balance Sheet
Total Assets	50.59B	60.94B	51.40B	50.99B	51.42B	54.21B
Cash, Cash Equivalents and Short-Term Investments	2.87B	5.09B	6.18B	6.33B	5.29B	7.68B
Total Debt	6.89B	11.19B	7.14B	8.16B	9.17B	11.18B
Total Liabilities	19.77B	27.62B	20.54B	20.89B	22.19B	24.51B
Stockholders Equity	30.83B	33.33B	30.86B	30.10B	29.23B	29.70B
Cash Flow
Free Cash Flow	0.00	-2.06B	3.17B	2.73B	271.26M	3.76B
Operating Cash Flow	0.00	-1.67B	3.67B	3.24B	1.09B	5.73B
Investing Cash Flow	0.00	-2.17B	-1.65B	-995.54M	-1.25B	-363.07M
Financing Cash Flow	0.00	1.58B	-1.50B	-1.40B	-2.40B	-5.40B

Rokko Butter Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1196.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1196 is below the 20-day moving average (MA) of 1209.55, below the 50-day MA of 1201.54, and below the 200-day MA of 1214.22, indicating a bearish trend. The MACD of 2.23 indicates Positive momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 53.84 is Neutral, 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
2602	69 Neutral	¥197.70B	8.38	12.56%	3.44%	3.80%	63.03%
4404	69 Neutral	¥23.93B	2.52	―	2.54%	2.80%	154.89%
2613	65 Neutral	¥69.28B	18.79	―	3.77%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2269	62 Neutral	¥1.11T	23.73	5.97%	2.96%	2.79%	-6.46%
2266	60 Neutral	¥23.38B	16.04	―	1.61%	-1.14%	3.35%
2607	57 Neutral	¥333.62B	15.70	―	1.45%	20.02%	―

Rokko Butter Co., Ltd. Corporate Events

Rokko Butter Posts Solid First Consolidated Results and Projects Strong Growth for 2026

Rokko Butter Co., Ltd. reported its first set of consolidated financial statements for the fiscal year ended December 31, 2025, posting net sales of ¥43.29 billion, operating profit of ¥1.44 billion, and profit attributable to owners of the parent of ¥1.49 billion, translating into basic earnings per share of ¥76.26. The company closed the year with total assets of ¥60.94 billion, equity of ¥33.33 billion, an equity ratio of 54.7%, and continued its stable shareholder returns with an annual dividend of ¥20 per share and a consolidated payout ratio of 26.2%.

Cash flows from operating activities were negative at ¥1.67 billion, offset by ¥1.58 billion in financing inflows, while cash and cash equivalents at year-end stood at ¥3.92 billion, highlighting active capital use alongside a solid liquidity position. For fiscal 2026, management forecasts strong top-line and profit growth, guiding for net sales of ¥55.0 billion, operating profit of ¥2.3 billion, and profit attributable to owners of the parent of ¥1.5 billion, implying roughly flat earnings per share but a 27% rise in sales and materially higher margins, which underscores an ambition to strengthen profitability and reinforce its market position while maintaining the current dividend level.

The most recent analyst rating on (JP:2266) stock is a Hold with a Yen1224.00 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 Lifts Profit Outlook Despite Slight Sales Downgrade on Weaker Cheese Demand

Rokko Butter has revised its full-year consolidated forecast for the fiscal year ending December 31, 2025, trimming expected net sales slightly to ¥43.2 billion due to weaker-than-planned cheese product sales. Despite the top-line downgrade, the company now anticipates significantly stronger profitability, raising projections for operating, ordinary and net profit on the back of improved cost efficiency, including lower raw material and logistics expenses, a development that enhances earnings quality and may be viewed positively by investors focused on margins and cost control.

The most recent analyst rating on (JP:2266) stock is a Hold with a Yen1224.00 price target. To see the full list of analyst forecasts on Rokko Butter Co., Ltd. stock, see the JP:2266 Stock Forecast page.