BR 31 Ice Cream Co., Ltd. (2268) AI Stock Analysis

• Market Cap: ¥38.74B
• Dividend Yield: 1.36%
• Average Volume (3M): 29.01K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.13
• Revenue Growth: 14.83%
• EPS Growth: 12.35%
• Country: JP
• Employees: 269
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): -22.56
• Shares Outstanding: 9,644,554
• 10 Day Avg. Volume: 15,560
• 30 Day Avg. Volume: 29,013
• PEG Ratio: 1.48
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 164.75
• 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: 67 Neutral
• Price Target: ¥4,362.00 ▲(8.64% Upside)
• Action: Downgraded Date: 02/11/26
• Date: Action: Downgraded 02/11/26

The score is driven primarily by solid financial strength—steady growth and low leverage—offset by weak recent free-cash-flow conversion. Technical signals are mixed/neutral with a potentially stretched near-term oscillator, and valuation is fair but not compelling given the modest dividend yield.

Positive Factors

Steady revenue growth

Consistent top-line expansion through 2025 indicates durable demand for the company's Baskin‑Robbins retail and take‑home channels. Re-accelerating sales support unit economics, scale benefits and capacity to invest in store network or product innovation, strengthening medium-term growth potential.

Conservative balance sheet

Low leverage and steadily expanding equity provide resiliency versus industry cyclicality and competitive shocks. A conservative capital structure preserves financial flexibility to fund store rollout, withstand temporary cash volatility, and pursue opportunistic investments without pressuring operations.

Healthy gross margin and operating profit

Sustained elevated gross margins and improving operating profit point to pricing power, product mix advantages, or franchise economics. That operating leverage supports reinvestment and long-term profitability even if top-line growth moderates, underpinning structural earnings quality.

Negative Factors

Volatile, compressed free cash flow

Thinner and inconsistent free cash flow reduces the company's ability to finance dividends, buybacks, debt paydown, or incremental store investment from operations. If reinvestment or working‑capital needs persist, management may need external funding, constraining strategic flexibility and raising execution risk.

Modest net margins; margin pressure

Relatively low net margins and a downward gross margin trend suggest rising input or operating costs, or increased competitive pricing pressure. Persistent margin compression would limit retained earnings and returns on capital, reducing the firm's capacity to reinvest profitably or improve shareholder returns over time.

Rising debt versus prior year

An uptick in debt, even from a low base, heightens leverage sensitivity if free cash flow remains unreliable. Additional interest or principal obligations could limit capital allocation choices and raise refinancing or liquidity risk during slower demand periods, pressuring strategic options over the medium term.

BR 31 Ice Cream Co., Ltd. Business Overview & Revenue Model

Company Description

B-R 31 Ice Cream Co.,Ltd. manufactures, imports, exports, and sells ice cream and related products. It also offers ice cream shop franchise development, product supply, and management services. The company sells its products through ice cream specialty stores. B-R 31 Ice Cream Co.,Ltd. was incorporated in 1973 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company makes money through multiple revenue streams including direct sales of ice cream products in its retail outlets, partnerships with restaurants and cafes for bulk sales, and distribution agreements with supermarkets and convenience stores. Additionally, BR 31 Ice Cream Co., Ltd. generates income from seasonal promotions and special product launches that attract customers. The company's strong brand presence and marketing strategies, along with its commitment to quality and innovation, contribute to its overall earnings.

BR 31 Ice Cream Co., Ltd. Financial Statement Overview

Summary

Fundamentals are solid overall: steady revenue growth and improved operating profit in 2025, plus a conservative balance sheet with low leverage and expanding equity. The main drag is cash conversion—free cash flow has become volatile and notably thinner in 2024–2025 despite higher profits, reducing financial flexibility.

Income Statement

Revenue has grown steadily from 2021–2025, with growth re-accelerating in 2025. Profitability is healthy for the category: gross margin has remained strong (roughly ~47%–56%) and operating profitability has improved versus earlier years, with 2025 showing higher operating profit and net income than 2024. Offsetting this, net margin remains modest (~4%–6%) and gross margin has trended down from the 2021 peak, suggesting some cost pressure even as sales rise.

Balance Sheet

The balance sheet looks conservative: leverage is low with debt-to-equity in the low-teens in 2025 and below 0.20 across the period, while equity has steadily expanded. Returns on equity are solid and improving versus 2020, indicating better earnings power on a stronger capital base. The main watch item is that debt increased in 2024–2025 versus 2023 (though still very manageable), which could matter if cash generation remains choppy.

Cash Flow

Operating cash flow is consistently positive and reached a period high in 2025, which supports earnings quality. However, free cash flow is volatile and has compressed sharply since 2021—dropping from very strong levels to relatively thin levels in 2024–2025—implying higher reinvestment needs or less favorable working-capital timing. Free cash flow as a share of net income is also low in 2024–2025, reducing flexibility for buybacks/dividends or faster debt paydown.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.31B	34.29B	30.69B	24.76B	22.04B	19.39B
Gross Profit	15.98B	17.02B	15.11B	11.75B	11.36B	10.95B
EBITDA	3.74B	4.06B	3.70B	3.31B	3.13B	2.55B
Net Income	1.65B	1.77B	1.54B	1.20B	1.23B	778.89M
Balance Sheet
Total Assets	28.61B	31.80B	26.31B	21.35B	19.96B	18.95B
Cash, Cash Equivalents and Short-Term Investments	6.51B	7.19B	8.03B	6.38B	5.80B	5.44B
Total Debt	2.25B	2.03B	2.46B	744.08M	974.09M	1.20B
Total Liabilities	14.24B	16.82B	12.68B	8.98B	8.56B	8.76B
Stockholders Equity	14.37B	14.98B	13.63B	12.37B	11.40B	10.19B
Cash Flow
Free Cash Flow	0.00	234.83M	455.23M	1.23B	887.18M	3.66B
Operating Cash Flow	0.00	4.46B	3.54B	2.72B	1.96B	4.04B
Investing Cash Flow	0.00	-4.34B	-3.24B	-1.59B	-1.30B	-661.06M
Financing Cash Flow	0.00	-959.58M	1.34B	-567.07M	-519.04M	-567.18M

BR 31 Ice Cream Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4015.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2268, the sentiment is Positive. The current price of 4015 is below the 20-day moving average (MA) of 4015.50, above the 50-day MA of 4013.29, and below the 200-day MA of 4094.55, indicating a neutral trend. The MACD of 2.50 indicates Negative momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2268.

BR 31 Ice Cream Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7698	69 Neutral	¥9.97B	17.75	―	0.89%	6.46%	80.02%
2268	67 Neutral	¥38.74B	21.87	―	1.36%	14.83%	12.35%
8079	64 Neutral	¥69.18B	22.67	―	1.48%	8.41%	-3.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2586	62 Neutral	¥12.23B	35.94	―	―	106.61%	―
3182	61 Neutral	¥50.47B	10.78	―	0.52%	20.97%	-56.39%
5884	41 Neutral	¥5.51B	120.20	―	―	6.26%	―