Hayashikane Sangyo Co., Ltd. (2286) AI Stock Analysis

• Market Cap: ¥8.20B
• Dividend Yield: 3.1%
• Average Volume (3M): 24.09K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.39
• Revenue Growth: -2.78%
• EPS Growth: 331.41%
• Country: JP
• Employees: 305
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 74.18
• Shares Outstanding: 8,910,000
• 10 Day Avg. Volume: 36,080
• 30 Day Avg. Volume: 24,093
• PEG Ratio: 0.09
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 8.45
• 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: 76 Outperform
• Price Target: ¥989.00 ▲(34.56% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

The stock is rated highly due to its strong technical indicators and attractive valuation, suggesting potential undervaluation and good investor returns. Financial performance is positive but tempered by concerns over cash flow and debt levels.

Positive Factors

Stable food-processing business model

Hayashikane operates in seafood processing with products for both consumer and commercial channels, a diversified end-market mix. This business model benefits from recurring demand for staple food products, steady volume needs from foodservice, and structural resilience versus cyclical industries over months.

Improving margins and operating efficiency

Margin expansion and stronger operating margins indicate better cost control and operational efficiency. Sustained improvements suggest management has addressed production or procurement inefficiencies, which can translate to durable cash generation and competitive pricing flexibility over the medium term.

Improved ROE with stable capital structure

Higher ROE signals more effective use of shareholder capital, while an equity ratio near 43% provides a stable base. Together they support the company’s ability to fund operations and strategic initiatives without excessive dilution, providing sustained returns if profitability holds.

Negative Factors

Deteriorating operating cash flow

A sharp decline in operating cash flow and falling free cash flow reduce internal funding for capex, dividends, and debt servicing. Over several quarters this weakens financial flexibility, forces reliance on external financing, and heightens execution risk when reinvesting in product lines or efficiency projects.

Elevated leverage relative to equity

A debt-to-equity near 0.7 denotes moderate leverage; combined with weakening cash conversion this raises refinancing and interest-coverage risks. In a tightening credit or adverse sales scenario, debt obligations could constrain strategic flexibility and increase vulnerability to margin pressure.

Low net profit margin

A net margin around 2% offers a thin buffer against input cost swings, competitive pricing pressure, or volume declines. Sustaining growth while improving margins will be required to build durable profitability; otherwise low margins limit reinvestment and heighten sensitivity to adverse industry shifts.

Hayashikane Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Hayashikane Sangyo Co.,Ltd. produces and sells food products in Japan. The company operates through Fisheries Food Business, Livestock Food Business, and Feed Business segments. It offers fish meat products, fish hams and sausages, black hog pork, and functional foods, as well as fish and livestock feed. The company was formerly known as Nissin Canned Food Co., Ltd. and changed its name to Hayashikane Sangyo Co.,Ltd. in January 1951. Hayashikane Sangyo Co.,Ltd. was founded in 1941 and is headquartered in Shimonoseki, Japan.

How the Company Makes Money

Hayashikane Sangyo Co., Ltd. generates revenue through the sale of its chemical products and materials to a variety of industries. The company's revenue model is primarily based on direct sales to industrial clients, with key revenue streams coming from the agricultural sector, where it supplies fertilizers and agrochemicals, and from the construction sector, providing specialty chemicals used in building materials. Additionally, the company may pursue strategic partnerships with other firms to expand its product offerings and access new markets, further contributing to its earnings. The company's focus on research and development also aids in creating high-value products that command premium prices, enhancing profitability.

Hayashikane Sangyo Co., Ltd. Financial Statement Overview

Summary

The company has shown positive revenue growth and improved profitability margins, with a stable balance sheet. However, the high debt level and deteriorating cash flow performance are concerns that need addressing.

Income Statement

The company has shown a positive trend in revenue growth, with a 4.0% increase from 2024 to 2025. Gross profit margin improved to 11.5% in 2025, indicating good cost management. Net profit margin also increased to 2.1%, showing enhanced profitability. EBIT and EBITDA margins have strengthened, reflecting better operating efficiency. However, the net profit margin remains relatively low, which suggests room for improvement in controlling costs or pricing strategy.

Balance Sheet

The debt-to-equity ratio of 0.71 indicates moderate leverage, which is manageable but requires close monitoring. Return on Equity (ROE) improved to 8.9% in 2025, signaling effective use of equity. The equity ratio of 42.7% reflects a stable capital structure, but the high level of debt compared to equity suggests potential risks if market conditions worsen.

Cash Flow

There was a significant drop in operating cash flow in 2025, indicating potential liquidity concerns. Free cash flow decreased, leading to a negative free cash flow growth rate. The operating cash flow to net income ratio is 1.1, which is satisfactory, but the free cash flow to net income ratio indicates less efficient cash conversion from profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	48.84B	49.27B	47.38B	42.54B	40.39B	44.37B
Gross Profit	6.18B	5.66B	5.20B	4.74B	5.86B	6.67B
EBITDA	2.76B	2.56B	1.87B	1.30B	2.05B	2.34B
Net Income	1.44B	1.05B	749.17M	333.19M	707.83M	1.29B
Balance Sheet
Total Assets	28.18B	27.63B	29.04B	26.76B	26.49B	28.66B
Cash, Cash Equivalents and Short-Term Investments	2.13B	3.16B	2.51B	843.52M	1.95B	2.47B
Total Debt	8.06B	8.41B	9.28B	10.37B	10.47B	11.37B
Total Liabilities	16.31B	15.84B	17.95B	16.82B	16.72B	18.42B
Stockholders Equity	11.86B	11.79B	11.09B	9.93B	9.77B	9.33B
Cash Flow
Free Cash Flow	0.00	496.00M	2.99B	-694.84M	291.51M	2.22B
Operating Cash Flow	0.00	1.11B	3.58B	-310.87M	683.76M	3.28B
Investing Cash Flow	0.00	885.00M	-399.05M	-452.02M	18.81M	47.28M
Financing Cash Flow	0.00	-1.35B	-1.24B	-615.68M	-737.50M	-2.90B

Hayashikane Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 735.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2286, the sentiment is Positive. The current price of 735 is below the 20-day moving average (MA) of 814.90, below the 50-day MA of 778.30, and above the 200-day MA of 665.97, indicating a bullish trend. The MACD of 36.32 indicates Negative momentum. The RSI at 81.47 is Negative, neither overbought nor oversold. The STOCH value of 90.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2286.

Hayashikane Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2286	76 Outperform	¥8.20B	5.10	―	3.10%	-2.78%	331.41%
2813	71 Outperform	¥10.90B	8.57	―	3.11%	3.42%	-10.05%
2911	68 Neutral	¥4.26B	15.73	―	1.55%	-1.00%	31.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2901	49 Neutral	¥11.46B	76.99	―	0.84%	4.28%	―
2293	47 Neutral	¥6.16B	-35.63	―	―	-3.27%	-108.33%
2291	37 Underperform	¥2.08B	-4.66	―	―	-2.97%	-6.82%