S Foods Inc. (2292) AI Stock Analysis

• Market Cap: ¥82.83B
• Dividend Yield: 3.44%
• Average Volume (3M): 40.06K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.59
• Revenue Growth: 4.60%
• EPS Growth: -70.62%
• Country: JP
• Employees: 2,467
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Agricultural Farm Products
• EPS (TTM): 37.62
• Shares Outstanding: 32,267,720
• 10 Day Avg. Volume: 45,980
• 30 Day Avg. Volume: 40,063
• PEG Ratio: -0.72
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥2,782.00 ▲(6.18%Upside)

The financial performance of S Foods Inc. is a significant factor, highlighting stable fundamentals but with challenges in profitability and cash flow. Technical analysis reflects weak momentum, and valuation indicates potential overvaluation despite a decent dividend yield. These factors collectively suggest cautious optimism, with financial and technical considerations weighing heavily on the stock's score.

S Foods Inc. Business Overview & Revenue Model

Company Description

S Foods Inc. (2292) is a leading company in the meat processing industry, primarily engaged in the production, processing, and sale of beef and other meat products. The company operates within the food sector, providing a wide range of fresh, frozen, and processed meat products to meet the demands of consumers and businesses alike. S Foods Inc. is known for its commitment to quality and safety, ensuring that its products meet stringent standards for both domestic and international markets.

How the Company Makes Money

S Foods Inc. generates revenue primarily through the sale of its meat products, which are distributed to retail outlets, food service providers, and other businesses in the food industry. The company leverages its extensive supply chain and state-of-the-art processing facilities to efficiently produce and deliver high-quality meat products. Key revenue streams include domestic sales within Japan, as well as international exports to various countries. The company's earnings are significantly influenced by its ability to maintain strong relationships with suppliers and partners, ensuring a steady supply of raw materials and access to new markets. Additionally, S Foods Inc. may engage in strategic partnerships or collaborations to expand its product offerings and enhance its market presence.

S Foods Inc. Financial Statement Overview

Summary

S Foods Inc. demonstrates a stable financial position with strong equity backing and moderate revenue growth. However, declining profitability margins and persistent negative free cash flow highlight underlying challenges in operational efficiency and cash management. Maintaining leverage while addressing these issues will be crucial for future financial stability.

Income Statement

S Foods Inc. has shown a moderate revenue growth rate of 4.6% in the latest year, with a gross profit margin of 10.2% and a net profit margin of 0.6%. However, there is a significant decline in EBIT and EBITDA margins compared to previous years, indicating pressure on operating efficiency and profitability.

Balance Sheet

The company maintains a strong equity ratio of 52.8%, with a manageable debt-to-equity ratio of 0.46, indicating a solid financial position and leverage management. However, a slight increase in total debt raises some caution.

Cash Flow

S Foods Inc. experienced negative free cash flow in the latest year, with a decline of 9.2% from the previous year. The operating cash flow to net income ratio stands at 2.73, showing strong cash generation relative to earnings, but the consistent negative free cash flow is concerning.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	438.65B	444.55B	425.01B	399.21B	358.82B	327.48B
Gross Profit	45.18B	45.46B	51.88B	52.49B	56.04B	50.58B
EBITDA	8.24B	11.34B	17.54B	19.16B	22.15B	17.81B
Net Income	2.11B	2.67B	9.07B	10.57B	11.94B	9.96B
Balance Sheet
Total Assets	236.01B	230.59B	224.24B	204.78B	181.52B	172.39B
Cash, Cash Equivalents and Short-Term Investments	34.02B	41.61B	49.86B	46.86B	41.86B	40.28B
Total Debt	49.71B	55.59B	52.81B	45.27B	40.02B	36.97B
Total Liabilities	111.09B	100.73B	97.67B	87.47B	75.36B	77.89B
Stockholders Equity	116.93B	121.77B	118.78B	110.09B	99.25B	87.97B
Cash Flow
Free Cash Flow	0.00	-4.31B	-3.95B	2.31B	3.04B	10.94B
Operating Cash Flow	0.00	7.28B	8.95B	13.71B	7.61B	16.51B
Investing Cash Flow	0.00	-15.03B	-14.46B	-13.17B	-7.45B	677.00M
Financing Cash Flow	0.00	-1.92B	7.33B	3.14B	470.00M	-7.33B

S Foods Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2620.00
• 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:2292, the sentiment is Positive. The current price of 2620 is above the 20-day moving average (MA) of 2601.50, below the 50-day MA of 2628.28, and above the 200-day MA of 2591.53, indicating a bullish trend. The MACD of 5.53 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 81.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2292.

S Foods Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8041	81 Outperform	¥19.69B	4.23		2.70%	5.07%	24.88%
1333	74 Outperform	$154.06B	6.60	10.52%	3.94%	4.65%	11.70%
2938	72 Outperform	¥56.72B	25.72		0.55%	13.62%	24.54%
9955	70 Outperform	¥27.93B	19.72		0.88%	-0.54%	-13.51%
Sector *	68 Neutral	¥197.78B	21.08	8.29%	2.34%	4.99%	3.05%
2292	64 Neutral	¥82.83B	31.09		3.44%	4.60%	-70.62%
2874	56 Neutral	¥51.54B	13.04		2.74%	1.11%	―

S Foods Inc. Corporate Events

S Foods Inc. Completes Treasury Shares Disposal for Restricted Stock

S Foods Inc. has completed the payment procedures for the disposal of treasury shares as restricted stock for its directors and employees. This move, resolved in a recent Board of Directors meeting, involves the disposal of 23,890 common shares at a value of 2,647 yen per share, totaling 63,236,830 yen, and is aimed at aligning the interests of its management and employees with the company’s performance.

S Foods Inc. Maintains Independence Despite Marubeni’s Stake

S Foods Inc. announced that Marubeni Corporation, a major shareholder, owns 15.3% of its voting rights, positioning S Foods as an equity method affiliate. The company maintains independent operations, engaging in sales and procurement transactions with Marubeni Corporation under standard business terms, indicating no preferential treatment or restrictions due to the corporate relationship.

S Foods Inc. Announces Disposal of Treasury Shares for Compensation Plan

S Foods Inc. announced the disposal of 23,890 treasury shares as part of a restricted stock compensation plan for its directors and employees. This initiative is designed to align the interests of the company’s management and workforce with those of its shareholders, promoting long-term corporate value. The plan includes a 30-year transfer restriction for directors and a restriction period tied to employment status for employees, aiming to incentivize sustained performance and commitment.

S Foods Inc. Reports Financial Results and Positive Outlook for 2026

S Foods Inc. reported its consolidated financial results for the fiscal year ending February 28, 2025, showing a 4.6% increase in net sales to ¥444,546 million. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 59.4%, 55.6%, and 70.6% respectively. The company plans to increase its annual dividend to ¥89.00 per share, reflecting a payout ratio of 105.6%. Despite the challenges, S Foods Inc. forecasts a recovery in the next fiscal year, with expected growth in net sales and profits, indicating a positive outlook for stakeholders.

S Foods Inc. Revises Financial Forecast Amid Subsidiary Losses

S Foods Inc. announced that its subsidiary, SFJ HOLDINGS LIMITED, has recorded an operating loss due to weak sales to China, impacting inventory valuations. Consequently, the company has revised its financial forecast for the fiscal year, anticipating lower profits due to increased raw material costs and higher live cattle prices in the U.S., which may affect stakeholders’ expectations.