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

• Market Cap: ¥144.62B
• Dividend Yield: 3.02%
• Average Volume (3M): 166.91K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.47
• Revenue Growth: 2.16%
• EPS Growth: -24.33%
• Country: JP
• Employees: 3,643
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 45.31
• 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: ¥3,000.00
• Price Target Upside: 3.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 181.09
• Revenue Forecast (FY): ¥475.00B

• Rating: 62 Neutral
• Price Target: ¥2,922.00 ▲(1.11% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is driven primarily by solid financial stability (low leverage) and a sharp TTM revenue rebound with improved free cash flow, tempered by structurally thin and declining profitability versus prior years. Technically, the longer-term trend is positive but near-term momentum is mixed, and valuation appears mid-range with a moderate dividend yield.

Positive Factors

Top-line rebound

A ~128% TTM revenue rebound signals durable recovery in demand and utilization of processing capacity. Sustained higher volumes can improve fixed-cost absorption, support scale economics, and provide a multi-month runway to rebuild margins and reinvest in distribution or efficiency.

Conservative leverage

Very low debt-to-equity (~0.18) gives the company financial flexibility to withstand cyclical food-demand swings, fund working-capital needs or selective capex, and maintain dividends. A strong balance sheet reduces refinancing risk and supports stability over the medium term.

Improving cash generation

Positive operating cash flow and a meaningful swing to ¥7.6B FCF show improved cash conversion versus prior weak periods. Reliable cash generation underpins reinvestment, working-capital flexibility and shareholder returns, reducing reliance on external funding over coming quarters.

Negative Factors

Thin profitability

Persistently thin margins (gross ~10.6%, operating ~2.1%, net ~1.3%) limit the company’s ability to absorb cost inflation or invest for growth without eroding returns. Structural margin compression versus 2021–22 heightens vulnerability to input and distribution cost swings over months.

Weak cash conversion

Low FCF-to-net-income (~0.21) indicates earnings are not translating efficiently into cash, likely due to working-capital demands. This can constrain funding for capex, dividends or debt reduction and makes near-term cash outcomes sensitive to inventory and receivables cycles.

Lower capital efficiency

A TTM ROE of ~5% signals reduced capital efficiency versus prior years. Lower ROE can limit shareholder returns and the firm’s ability to attract capital for expansion, implying management must either improve margins or grow higher-return volumes to restore long-term profitability.

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

Strong TTM revenue rebound (~128%) and improving free cash flow versus weaker prior periods support the score, and leverage is conservative (debt-to-equity ~0.18). Offsetting this, profitability is structurally thin (TTM net margin ~1.3%) and margins/ROE have stepped down versus 2021–2022, indicating ongoing margin pressure.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly versus the prior period (revenue growth ~128%), signaling a sharp top-line rebound. However, profitability is thin for the business model (TTM gross margin ~10.6%, operating margin ~2.1%, net margin ~1.3%) and has trended down versus the last several annual periods (2021–2022 notably higher margins). Net income in TTM is also slightly below the most recent annual result, pointing to some margin pressure despite higher sales.

Balance Sheet

Leverage looks conservative, with low debt relative to equity (debt-to-equity ~0.18 in both TTM and the latest annual period), which supports balance-sheet resilience. Equity has grown modestly over time, and return on equity is positive but moderate (TTM ~5.0%), below the stronger levels seen in 2021–2022, implying reduced capital efficiency. Overall, the balance sheet appears stable with manageable financial risk.

Cash Flow

Cash generation is positive in TTM (operating cash flow ~¥17.8B; free cash flow ~¥7.6B) and free cash flow growth is very strong in TTM, reflecting a meaningful improvement from weaker periods (including negative free cash flow in 2023). That said, cash conversion is not especially strong: TTM free cash flow is only a small fraction of net income (free cash flow to net income ~0.21), and operating cash flow is modest relative to the company’s scale, suggesting working-capital or reinvestment demands can still swing results.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	470.94B	458.35B	448.43B	430.74B	419.59B	433.57B
Gross Profit	51.62B	48.49B	50.14B	47.75B	51.62B	73.41B
EBITDA	22.09B	22.71B	25.09B	20.98B	25.86B	32.10B
Net Income	6.62B	7.08B	7.49B	4.50B	9.72B	14.16B
Balance Sheet
Total Assets	256.28B	239.61B	244.79B	229.89B	221.72B	214.54B
Cash, Cash Equivalents and Short-Term Investments	11.67B	12.29B	15.36B	17.90B	25.58B	32.98B
Total Debt	19.76B	22.07B	21.71B	25.41B	20.62B	22.15B
Total Liabilities	124.28B	109.38B	114.58B	106.69B	99.16B	99.78B
Stockholders Equity	122.60B	119.38B	119.31B	113.17B	111.86B	103.63B
Cash Flow
Free Cash Flow	7.60B	5.06B	5.88B	-8.85B	1.13B	16.86B
Operating Cash Flow	17.83B	14.21B	22.54B	11.72B	16.74B	27.25B
Investing Cash Flow	-13.25B	-13.57B	-19.42B	-15.09B	-23.71B	-12.21B
Financing Cash Flow	-5.79B	-4.20B	-7.57B	1.21B	-6.62B	-7.51B

Prima Meat Packers,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2890.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2890 is above the 20-day moving average (MA) of 2830.50, above the 50-day MA of 2788.74, and above the 200-day MA of 2465.01, indicating a bullish trend. The MACD of 28.87 indicates Negative momentum. The RSI at 58.41 is Neutral, neither overbought nor oversold. The STOCH value of 76.63 is Neutral, 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	¥33.40B	12.61	―	1.94%	3.15%	27.71%
2692	69 Neutral	¥166.46B	19.46	―	1.39%	3.91%	-0.28%
8030	68 Neutral	¥16.64B	5.56	―	3.17%	5.19%	11.04%
8079	64 Neutral	¥69.60B	22.72	―	1.48%	8.41%	-3.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2281	62 Neutral	¥144.62B	22.05	―	3.02%	2.16%	-24.33%
3182	61 Neutral	¥51.27B	11.15	―	0.52%	20.97%	-56.39%

Prima Meat Packers,Ltd. Corporate Events

Prima Meat Packers Posts Higher Sales but Softer Profits, Affirms Forecast and Dividend Plan

Prima Meat Packers reported a 3.6% year-on-year increase in net sales to ¥362.9 billion for the nine months ended December 31, 2025, but operating profit edged down 2.1% and profit attributable to owners of parent fell 7.7%, reflecting margin pressure despite revenue growth. Total assets rose to ¥256.3 billion and equity increased modestly, though the equity ratio dipped to 47.8%, while the company maintained its dividend policy with an unchanged full-year forecast of ¥80 per share and projected full-year fiscal 2025/26 net sales of ¥480 billion and a strong rebound in profitability, including a 34.1% rise in operating profit, underscoring management’s expectation of earnings recovery and continued shareholder returns.

The most recent analyst rating on (JP:2281) stock is a Buy with a Yen3127.00 price target. To see the full list of analyst forecasts on Prima Meat Packers,Ltd. stock, see the JP:2281 Stock Forecast page.

Prima Meat Packers Probes Fire at Hokkaido Subsidiary Farm

Prima Meat Packers has reported a fire at Farm 2 of its consolidated subsidiary Kamifurano Farm, Ltd. in Kamifurano-cho, Hokkaido, which broke out around midday on December 20, 2025 and was extinguished later that night. The company stated that there were no reported injuries, while the extent of property damage and the potential impact on its consolidated financial performance are still under investigation; management has pledged full cooperation with authorities, a thorough inquiry into the cause, and the implementation of measures to prevent a recurrence, and has indicated that it will promptly disclose any material effects on its results.

The most recent analyst rating on (JP:2281) stock is a Hold with a Yen2774.00 price target. To see the full list of analyst forecasts on Prima Meat Packers,Ltd. stock, see the JP:2281 Stock Forecast page.

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.

The most recent analyst rating on (JP:2281) stock is a Hold with a Yen2709.00 price target. To see the full list of analyst forecasts on Prima Meat Packers,Ltd. stock, see the JP:2281 Stock Forecast page.