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

• Market Cap: ¥8.77B
• Dividend Yield: 3.1%
• Average Volume (3M): 24.09K
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.36
• 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: 74 Outperform
• Price Target: ¥1,085.00 ▲(47.62% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is driven primarily by improving profitability trends but tempered by deteriorating operating and free cash flow. Technicals are supportive with a strong multi-timeframe uptrend and positive momentum. Valuation is notably attractive given the very low P/E and a moderate dividend yield.

Positive Factors

Improving margins

Revenue growth and rising gross, EBIT/EBITDA and net margins indicate sustained operational improvements. Better cost control and margin expansion support durable profitability, enabling reinvestment and resilience to moderate demand shifts over the next several months.

Manageable leverage

A moderate debt-to-equity level and a stable equity ratio alongside improving ROE point to a balanced capital structure. This provides financial flexibility to fund operations or targeted investments while limiting refinancing stress across a 2-6 month horizon.

Defensive packaged-food niche

Concentration in packaged seafood and processed foods offers steady, repeatable demand across retail and commercial channels. This defensive industry exposure supports predictable revenues and durable cash flow potential versus cyclical sectors over months.

Negative Factors

Weak cash generation

The notable decline in operating cash flow and lower free cash flow reduce liquidity and the company's ability to fund capex, dividends or absorb shocks. Weak cash conversion also raises questions about earnings quality and sustainability over near-term periods.

Inconsistent revenue trends

A negative revenue growth metric in fundamentals alongside reported YoY gains suggests uneven top-line performance or period-to-period volatility. Such inconsistency complicates forecasting, working capital planning and margin predictability over the coming quarters.

Commodity & seasonality risk

Heavy exposure to marine inputs implies vulnerability to fish catch variability, input price swings and seasonal supply disruptions. These structural risks can materially pressure margins and cash flow timing across fiscal periods, reducing earnings stability.

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

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Hayashikane Sangyo Co., Ltd. Financial Statement Overview

Summary

Income statement is solid (revenue up 4.0% YoY with improving gross, EBIT/EBITDA, and net margins), and the balance sheet shows manageable leverage (debt-to-equity 0.71, equity ratio 42.7%, ROE 8.9%). The main drag is cash flow, with a significant decline in operating cash flow and weaker free-cash-flow conversion, raising liquidity/quality-of-earnings concerns.

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 899.55, below the 50-day MA of 815.62, and above the 200-day MA of 691.09, indicating a bullish trend. The MACD of 42.91 indicates Negative momentum. The RSI at 73.21 is Negative, neither overbought nor oversold. The STOCH value of 93.18 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	74 Outperform	¥8.77B	2.45	―	3.10%	-2.78%	331.41%
2813	71 Outperform	¥10.61B	4.17	―	3.11%	3.42%	-10.05%
2911	68 Neutral	¥4.31B	6.34	―	1.55%	-1.00%	31.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2901	49 Neutral	¥10.30B	-8,155.86	―	0.84%	4.28%	―
2293	47 Neutral	¥6.17B	4.87	―	―	-3.27%	-108.33%
2291	37 Underperform	¥2.07B	5.43	―	―	-2.97%	-6.82%