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

• Market Cap: ¥59.92B
• Dividend Yield: 2.27%
• Average Volume (3M): 71.19K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.38
• Revenue Growth: 1.46%
• EPS Growth: N/A
• Country: JP
• Employees: 1,931
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 76.44
• Shares Outstanding: 26,505,580
• 10 Day Avg. Volume: 102,620
• 30 Day Avg. Volume: 71,193
• PEG Ratio: -0.05
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -157.38
• 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: 67 Neutral
• Price Target: ¥2,587.00 ▲(16.58% Upside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 02/07/26

The score is driven primarily by a recovering financial profile (return to profitability, improving margins, and manageable leverage). Technicals add support via a clear uptrend, but overbought momentum signals increase short-term risk. Valuation is supportive with a low P/E and moderate dividend yield, though earnings and cash-flow variability keep the overall score in the mid-to-high 60s.

Positive Factors

Return to Profitability

The company has shifted from multi-year losses to a clear TTM earnings recovery with revenue growth and small positive margins. This stabilizes cash generation and credit metrics, improving the firm's ability to fund operations, modest reinvestment, and sustain a turnaround over the coming months.

Conservative, Improving Leverage

Lower leverage and a stronger equity base increase financial flexibility, reducing default and refinancing risk. Improved debt metrics support steady investment in operations or working capital and give management latitude to navigate commodity cycles or pursue targeted growth without immediate capital raises.

Swing to Positive Free Cash Flow

A move to positive free cash flow indicates the business is beginning to convert earnings into liquidity, allowing for debt paydown, working-capital normalization, or shareholder returns. While conversion is not yet robust, the improvement is a durable step toward self-funded operations.

Negative Factors

Thin and Volatile Margins

Operating and net margins are modest and have swung from losses to small profits, indicating earnings sensitivity to cost, mix, or pricing. Persistently thin margins constrain reinvestment and margin of safety, amplifying risk if input costs or volume decline over the medium term.

Weak Cash Conversion

Low cash conversion and FCF materially below net income suggest working-capital demands or reinvestment needs. This limits the company’s capacity to sustainably fund capex, pay dividends, or rapidly pay down debt without rebuilding cash buffers, restricting financial resilience.

Raw Material Cost Exposure

A business model tied to volatile pork and meat input prices exposes margins to commodity cycles. If pricing power is limited by retailer/foodservice contracts or competition, the firm may face recurring earnings pressure, making margin sustainability contingent on cost pass-through or hedging effectiveness.

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

Company Description

Marudai Food Co., Ltd. (2288) is a prominent player in the food manufacturing sector, specializing in the production and distribution of processed seafood products, including fish cakes, crab sticks, and other surimi-based items. The company operates within the broader food industry, catering to both domestic and international markets, and is known for its commitment to quality and innovation in food processing. Marudai also engages in various value-added food products that meet consumer demands for convenience and flavor.

How the Company Makes Money

Marudai Food Co., Ltd. generates revenue primarily through the production and sale of its processed seafood products. Key revenue streams include wholesale and retail sales of fish cakes and surimi products to supermarkets, restaurants, and food service companies. The company also benefits from strategic partnerships with distributors and retailers, enhancing its market reach and operational efficiency. Additionally, Marudai leverages its brand reputation and product quality to capture market share in both domestic and international markets, which contributes to its overall earnings.

Marudai Food Co., Ltd. Financial Statement Overview

Summary

TTM results show a meaningful earnings recovery with modest revenue growth and a return to positive operating and net margins, supported by improving gross margin. Balance sheet leverage is conservative and improving, but margins and returns remain modest and recent profitability/cash-flow volatility keeps the score from being higher.

Income Statement

TTM (Trailing-Twelve-Months) results show a clear earnings recovery: revenue grew 4.6% with positive operating and net profitability (about 3.0% operating margin and 2.0% net margin). Profitability has improved meaningfully versus the prior two years, when net losses were recorded, but margins remain relatively thin for a packaged foods business and have been volatile (losses in FY2023–FY2024, then rebound in FY2025/TTM). Gross margin has also improved versus the prior year (roughly 16.4% TTM vs ~15.2% FY2024), supporting the turnaround, though still below earlier highs.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.27 in TTM (Trailing-Twelve-Months), improving from ~0.35 in FY2024, and equity is substantial relative to the asset base. Returns on equity have recovered to mid-single digits in TTM (about 6.5%) after negative levels in FY2023–FY2024, indicating stabilization. The key weakness is that profitability and returns are still modest, so the balance sheet strength is partly dependent on sustaining the recent earnings rebound.

Cash Flow

Cash generation improved in TTM (Trailing-Twelve-Months) with solid operating cash flow and positive free cash flow, a notable swing from the prior year’s negative free cash flow. However, cash conversion is not consistently strong: free cash flow is only about one-third of net income in TTM, and operating cash flow relative to revenue remains low (roughly 4–5%), suggesting working-capital or reinvestment needs can pressure cash generation. The trend is encouraging, but the history shows meaningful year-to-year variability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	236.79B	234.97B	228.81B	221.98B	218.61B	234.15B
Gross Profit	38.91B	37.10B	34.68B	30.48B	31.96B	49.46B
EBITDA	11.91B	12.04B	-1.94B	4.42B	7.94B	8.76B
Net Income	4.80B	5.49B	-9.41B	-4.99B	-376.00M	412.00M
Balance Sheet
Total Assets	139.55B	120.92B	121.82B	126.26B	128.90B	133.55B
Cash, Cash Equivalents and Short-Term Investments	9.32B	8.98B	9.67B	6.92B	7.99B	8.48B
Total Debt	19.88B	20.46B	21.64B	22.79B	20.67B	20.40B
Total Liabilities	64.16B	53.91B	59.07B	57.25B	53.41B	55.87B
Stockholders Equity	74.54B	66.20B	62.01B	68.33B	74.83B	77.07B
Cash Flow
Free Cash Flow	3.87B	-267.00M	5.14B	-2.65B	253.00M	2.25B
Operating Cash Flow	10.92B	5.40B	10.01B	2.91B	7.03B	7.67B
Investing Cash Flow	-6.51B	-2.88B	-4.88B	-4.52B	-5.69B	-5.39B
Financing Cash Flow	-4.16B	-3.20B	-2.38B	534.00M	-1.83B	-2.05B

Marudai Food Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2219.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2219 is below the 20-day moving average (MA) of 2363.15, below the 50-day MA of 2280.34, and above the 200-day MA of 2025.60, indicating a bullish trend. The MACD of 33.56 indicates Positive momentum. The RSI at 58.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.73 is Neutral, 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
2288	67 Neutral	¥59.92B	12.24	6.48%	2.27%	1.46%	―
2296	64 Neutral	¥339.28B	21.60	―	2.61%	6.54%	15.08%
2811	63 Neutral	¥247.07B	17.96	―	2.11%	3.69%	-50.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2264	59 Neutral	¥436.07B	31.87	―	2.42%	2.33%	-8.76%
2607	57 Neutral	¥333.62B	15.70	―	1.45%	20.02%	―

Marudai Food Co., Ltd. Corporate Events

Marudai Food to Book ¥4.6 Billion Gain From Securities Sale and Lifts Profit Forecast

Marudai Food has resolved to sell part of its holdings in 13 listed securities between February and March 2026, aiming to reduce cross-shareholdings, improve capital efficiency, and strengthen its financial position. The transaction is expected to generate an estimated ¥4.6 billion in extraordinary income for the fiscal year ending March 31, 2026, and, as a result, the company has raised its forecast for profit attributable to owners of parent from ¥5.5 billion to ¥9.0 billion, a 63.6% increase, while keeping net sales and operating profit forecasts unchanged and maintaining its current dividend outlook, with a stated policy of targeting a total return ratio of 30% or more and considering additional shareholder return measures depending on future performance and financial conditions.

The most recent analyst rating on (JP:2288) stock is a Buy with a Yen2507.00 price target. To see the full list of analyst forecasts on Marudai Food Co., Ltd. stock, see the JP:2288 Stock Forecast page.

Marudai Food Lifts Full-Year Profit Outlook as Operating Margin Improves

For the nine months ended December 31, 2025, Marudai Food reported a slight 1.0% rise in net sales to ¥183.6 billion, while operating profit surged 34.1% and ordinary profit rose 31.4%, indicating improved profitability despite a decline of 11.9% in profit attributable to owners of parent to ¥5.1 billion and lower basic earnings per share. The company’s financial position strengthened with total assets increasing to ¥139.6 billion and equity to ¥74.5 billion, and it affirmed its shareholder return stance with an annual dividend forecast of ¥65 per share for the fiscal year ending March 31, 2026, alongside an upgraded full-year earnings forecast calling for modest sales growth but a significant 64.0% rebound in full-year profit attributable to owners of parent.

The most recent analyst rating on (JP:2288) stock is a Buy with a Yen2507.00 price target. To see the full list of analyst forecasts on Marudai Food Co., Ltd. stock, see the JP:2288 Stock Forecast page.

Marudai Food Revises Earnings and Dividend Forecasts Upward

Marudai Food Co., Ltd. has revised its earnings and dividend forecasts for the fiscal year ending March 31, 2026. Despite lower net sales due to weaker U.S. beef sales, the company expects higher profits due to strong performance in processed foods and cost management. Consequently, the year-end dividend forecast has been increased from ¥55 to ¥65 per share, reflecting the company’s commitment to shareholder returns.

The most recent analyst rating on (JP:2288) stock is a Hold with a Yen2019.00 price target. To see the full list of analyst forecasts on Marudai Food Co., Ltd. stock, see the JP:2288 Stock Forecast page.

Marudai Food Reports Mixed Financial Results and Dividend Increase

Marudai Food Co., Ltd. reported a slight increase in net sales for the six months ending September 30, 2025, with a notable rise in operating and ordinary profits. However, the profit attributable to owners of the parent decreased significantly. The company announced a revision in its cash dividend forecast, indicating a planned increase in dividends for the fiscal year ending March 31, 2026, which may have implications for investor returns.

The most recent analyst rating on (JP:2288) stock is a Hold with a Yen2019.00 price target. To see the full list of analyst forecasts on Marudai Food Co., Ltd. stock, see the JP:2288 Stock Forecast page.