Prima Meat Packers,Ltd. (2281) AI Stock Analysis

• Market Cap: ¥133.97B
• Dividend Yield: 3.02%
• Average Volume (3M): 166.91K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.41
• Revenue Growth: 2.16%
• EPS Growth: -24.33%
• Country: JP
• Employees: 3,643
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 27.05
• Shares Outstanding: 50,524,400
• 10 Day Avg. Volume: 105,060
• 30 Day Avg. Volume: 166,910
• PEG Ratio: -2.85
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 22.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥2,774.00 ▲(4.05% Upside)

Prima Meat Packers' overall stock score is driven by a stable financial performance and positive technical indicators. The company's strong balance sheet and consistent revenue growth are offset by pressure on profitability margins and cash flow conversion challenges. The technical analysis suggests a bullish trend, while the valuation indicates the stock is fairly priced with a moderate dividend yield.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates prudent financial management, providing the company with flexibility to invest in growth opportunities or weather economic downturns.

Revenue Growth

Consistent revenue growth reflects the company's ability to maintain its market position and adapt to changing consumer demands, supporting long-term business sustainability.

Free Cash Flow Improvement

Significant improvement in free cash flow growth enhances the company's ability to reinvest in its operations, pay down debt, or return capital to shareholders, strengthening financial health.

Negative Factors

Profitability Margin Pressure

Declining profit margins can impact the company's ability to generate sufficient returns on its investments, potentially affecting long-term profitability and competitiveness.

Cash Flow Conversion Challenges

Challenges in converting income into cash may limit the company's ability to fund operations and growth initiatives, posing risks to financial stability.

Earnings Decline

A decline in earnings per share indicates potential challenges in maintaining profitability, which could affect investor confidence and the company's ability to finance future growth.

Prima Meat Packers,Ltd. Business Overview & Revenue Model

Company Description

Prima Meat Packers, Ltd. produces and markets hams and sausages, fresh meats, processed foods, and other products in Japan. It operates through Processed Foods Business and Fresh Meat Business segments. The company is also involved in live hog operation, slaughtering, facility cleaning, environmental protection, information security management, and food inspection activities, as well as system development, management, and operation activities. In addition, it engages in the wholesale of livestock products; development, manufacture, and sale of scientific instruments; processing, distribution, and sale of meat; manufacture of products for convenience stores; and provision of staffing, wage accounting, and insurance services. The company was founded in 1931 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Prima Meat Packers generates revenue through multiple key streams, primarily from the sale of fresh and processed meat products to retail and food service customers. The company's revenue model is anchored on its ability to maintain high standards of product quality, which has helped establish a strong brand reputation and customer loyalty. Additionally, partnerships with local supermarkets and restaurants enhance distribution and sales channels, contributing to consistent revenue growth. The company may also engage in export activities, supplying meat products to international markets, which further diversifies its revenue sources.

Prima Meat Packers,Ltd. Financial Statement Overview

Summary

Prima Meat Packers, Ltd. has a mixed financial performance. Strong revenue growth is offset by thin profitability margins and cash flow challenges. The balance sheet is stable with low leverage, but operational efficiency and cash flow management need improvement.

Income Statement

Prima Meat Packers, Ltd. has shown a mixed performance in its income statement. The company has a modest gross profit margin of 10.58% TTM, indicating some efficiency in managing production costs. However, the net profit margin of 1.54% TTM suggests limited profitability after accounting for all expenses. Revenue growth is strong at 63.7% TTM, but this is likely due to a rebound effect rather than sustainable growth. The EBIT and EBITDA margins are relatively low, at 2.23% and 4.62% TTM, respectively, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Prima Meat Packers, Ltd. reflects a stable financial position. The debt-to-equity ratio is low at 0.18 TTM, suggesting prudent use of leverage. Return on equity stands at 5.89% TTM, which is moderate and indicates the company is generating a reasonable return on shareholders' investments. The equity ratio is not provided, but the overall leverage appears manageable, reducing financial risk.

Cash Flow

Cash flow analysis reveals some challenges for Prima Meat Packers, Ltd. The free cash flow growth rate is negative at -88.16% TTM, highlighting significant volatility and potential liquidity issues. The operating cash flow to net income ratio is 0.17 TTM, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is 0.36 TTM, suggesting limited cash available for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	464.97B	458.35B	448.43B	430.74B	419.59B	433.57B
Gross Profit	49.49B	48.49B	50.14B	47.75B	51.62B	73.41B
EBITDA	21.33B	22.71B	25.09B	20.98B	25.86B	32.10B
Net Income	5.97B	7.08B	7.49B	4.50B	9.72B	14.16B
Balance Sheet
Total Assets	242.88B	239.61B	244.79B	229.89B	221.72B	214.54B
Cash, Cash Equivalents and Short-Term Investments	10.79B	12.29B	15.36B	17.90B	25.58B	32.98B
Total Debt	22.15B	22.07B	21.71B	25.41B	20.62B	22.15B
Total Liabilities	111.21B	109.38B	114.58B	106.69B	99.16B	99.78B
Stockholders Equity	121.39B	119.38B	119.31B	113.17B	111.86B	103.63B
Cash Flow
Free Cash Flow	3.06B	5.06B	5.88B	-8.85B	1.13B	16.86B
Operating Cash Flow	14.48B	14.21B	22.54B	11.72B	16.74B	27.25B
Investing Cash Flow	-15.29B	-13.57B	-19.42B	-15.09B	-23.71B	-12.21B
Financing Cash Flow	-3.35B	-4.20B	-7.57B	1.21B	-6.62B	-7.51B

Prima Meat Packers,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2666.00
• 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:2281, the sentiment is Positive. The current price of 2666 is above the 20-day moving average (MA) of 2602.55, above the 50-day MA of 2498.32, and above the 200-day MA of 2323.34, indicating a bullish trend. The MACD of 45.33 indicates Negative momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 80.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2281.

Prima Meat Packers,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8006	78 Outperform	¥29.93B	11.81	―	1.94%	3.15%	27.71%
7614	71 Outperform	¥10.23B	10.57	―	2.23%	7.53%	-17.97%
2692	69 Neutral	¥144.38B	17.61	―	1.39%	3.91%	-0.28%
7451	68 Neutral	―	―	―	―	1.49%	6.34%
2281	67 Neutral	¥133.97B	22.45	―	3.02%	2.16%	-24.33%
8079	64 Neutral	¥68.25B	22.36	―	1.48%	8.41%	-3.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Prima Meat Packers,Ltd. Corporate Events

Prima Meat Packers Announces Stable Interim Dividends

Prima Meat Packers, Ltd. announced the distribution of interim dividends of 40 yen per share, maintaining its commitment to a payout ratio of 40% or more. This decision reflects the company’s focus on shareholder value and its stable financial performance, with the total dividend amounting to 2,013 million yen.

Prima Meat Packers Reports Mixed Financial Results for First Half of 2025

Prima Meat Packers, Ltd. reported a slight increase in net sales for the six months ending September 30, 2025, but experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent compared to the previous year. Despite these challenges, the company maintains a stable equity ratio and has not revised its financial forecast for the fiscal year ending March 31, 2026, indicating confidence in future performance.

Prima Meat Packers Announces Executive Leadership Changes

Prima Meat Packers, Ltd. announced changes in its executive officers, effective October 6, 2025, with Kenichi Tai assuming additional responsibilities as the Head of IT Promotion Department. This change follows the resignation of Yasushi Miyatake, who previously held the position of Executive Officer and Head of IT Promotion Department. These shifts in executive roles are part of the company’s ongoing strategic initiatives, potentially impacting its corporate strategy and project management efforts.