Marudai Food Co., Ltd. (2288) AI Stock Analysis

• Market Cap: ¥45.76B
• Dividend Yield: 2.75%
• Average Volume (3M): 26.89K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.36
• Revenue Growth: 2.69%
• EPS Growth: N/A
• Country: JP
• Employees: 1,931
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Packaged Foods
• EPS (TTM): -9.85
• Shares Outstanding: 26,505,580
• 10 Day Avg. Volume: 28,480
• 30 Day Avg. Volume: 26,890
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.76
• 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

• Rating: 66 Neutral
• Price Target: ¥1,913.00 ▲(5.11%Upside)

Marudai Food Co., Ltd. presents a moderate investment opportunity, with strong valuation metrics and a stable financial performance that is recovering. While technical indicators suggest mixed momentum, the stock's attractive valuation and improving profitability are significant positives.

Marudai Food Co., Ltd. Business Overview & Revenue Model

Company Description

Marudai Food Co., Ltd. (2288) is a prominent Japanese company operating in the food industry, primarily engaged in the production and distribution of processed food products. The company has diversified its product portfolio to include meat products, processed foods, and ready-to-eat meals. Marudai Food is known for its commitment to quality, innovation, and customer satisfaction, catering to both domestic and international markets.

How the Company Makes Money

Marudai Food Co., Ltd. generates revenue through several key streams, primarily focusing on the sale of processed meat products, including ham, sausages, and bacon. The company also earns from its range of ready-to-eat meals and other processed food items designed to meet the convenience needs of modern consumers. By leveraging its extensive distribution network, Marudai Food ensures its products reach a wide array of retail and wholesale customers. The company's earnings are further supported by strategic partnerships and collaborations within the food industry, enhancing its market presence and expanding its product offerings. Additionally, Marudai Food invests in research and development to innovate new products that align with consumer trends, thus maintaining its competitive edge and driving sales growth.

Marudai Food Co., Ltd. Financial Statement Overview

Summary

Marudai Food Co., Ltd. demonstrates a recovery trend across its financial statements, with improved profitability and operational efficiency. However, volatility in cash flow and inconsistent revenue growth present areas for concern.

Income Statement

Marudai Food Co., Ltd. shows a mixed performance on the income statement. The gross profit margin has improved slightly from previous years, indicating better cost management. However, the revenue growth rate has fluctuated, with recent years showing a decline. Net income has recently turned positive, which is a strong recovery from previous losses, significantly improving the net profit margin. The EBIT and EBITDA margins have also improved, showing better operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position with a healthy equity ratio and manageable debt levels. The debt-to-equity ratio remains reasonable, suggesting a balanced approach to leveraging. Return on equity has turned positive after consecutive years of losses, indicating improved profitability. However, the overall asset base has slightly decreased, which may limit future growth potential.

Cash Flow

The cash flow statement indicates some challenges in free cash flow, which has been volatile, showing a recent decline. Operating cash flow to net income ratio is stable and reflects efficient cash generation relative to earnings. However, the free cash flow to net income ratio is concerning, with recent negative free cash flow, suggesting challenges in converting profits into cash.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	234.97B	228.81B	221.98B	218.61B	234.15B
Gross Profit	37.10B	34.68B	30.48B	31.96B	49.46B
EBITDA	12.04B	-1.94B	4.42B	7.94B	7.47B
Net Income	5.49B	-9.41B	-4.99B	-376.00M	412.00M
Balance Sheet
Total Assets	120.92B	121.82B	126.26B	128.90B	133.55B
Cash, Cash Equivalents and Short-Term Investments	8.98B	9.67B	6.92B	7.99B	8.48B
Total Debt	19.59B	21.64B	22.79B	20.67B	20.40B
Total Liabilities	53.91B	59.07B	57.25B	53.41B	55.87B
Stockholders Equity	66.20B	62.01B	68.33B	74.83B	77.07B
Cash Flow
Free Cash Flow	-267.00M	5.14B	-2.65B	253.00M	2.25B
Operating Cash Flow	5.40B	10.01B	2.91B	7.03B	7.67B
Investing Cash Flow	-2.88B	-4.88B	-4.52B	-5.69B	-5.39B
Financing Cash Flow	-3.20B	-2.38B	534.00M	-1.83B	-2.05B

Marudai Food Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1820.00
• 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:2288, the sentiment is Positive. The current price of 1820 is above the 20-day moving average (MA) of 1784.25, above the 50-day MA of 1808.42, and above the 200-day MA of 1699.71, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 85.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2288.

Marudai Food Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2296	72 Outperform	¥263.74B	21.55		6.83%	3.47%	-15.46%
2288	66 Neutral	¥45.76B	8.18	8.38%	2.75%	2.69%	―
2264	63 Neutral	¥300.35B	52.42		2.66%	2.58%	-90.84%
2811	61 Neutral	¥255.15B	16.20		1.99%	25.63%	-24.35%
Sector *	60 Neutral	HK$17.53B	11.05	0.20%	5.38%	2.68%	-48.29%
2607	46 Neutral	¥241.51B	108.31		1.85%	18.99%	-65.82%

Marudai Food Co., Ltd. Corporate Events

Marudai Food Introduces Performance-Linked Share-Based Remuneration System

Marudai Food Co., Ltd. has announced the introduction of a performance-linked share-based remuneration system for its directors, excluding outside directors. This new system aims to align directors’ interests with the company’s performance and share value, encouraging a focus on medium- to long-term corporate value enhancement. The system, which involves a trust acquiring company shares to be distributed to directors, is subject to approval at the upcoming shareholders meeting.

Marudai Food Revises Earnings Forecast with Improved Profit Margins

Marudai Food Co., Ltd. has revised its earnings forecast for the fiscal year ending March 31, 2025, with a slight decrease in net sales but significant improvements in operating and ordinary profits due to cost reductions and steady processed food sales. Despite an extraordinary impairment loss in its Fresh Meat Business, the company’s profit attributable to owners of the parent is expected to surpass previous forecasts, indicating resilience amidst rising raw material and logistics costs.