S Foods Inc. (2292) AI Stock Analysis

• Market Cap: ¥95.95B
• Dividend Yield: 3.59%
• Average Volume (3M): 57.94K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.61
• Revenue Growth: 4.55%
• EPS Growth: 79.33%
• Country: JP
• Employees: 2,467
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 84.75
• Shares Outstanding: 32,267,720
• 10 Day Avg. Volume: 70,410
• 30 Day Avg. Volume: 57,943
• PEG Ratio: -0.40
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -17.43
• 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: 70 Neutral
• Price Target: ¥3,332.00 ▲(22.41% Upside)

The stock's score is primarily influenced by its stable financial position and moderate valuation. However, declining profitability and negative cash flow are significant concerns. Technical indicators suggest short-term bearishness, affecting the overall outlook.

Positive Factors

Strong equity ratio and manageable leverage

A 52.8% equity ratio and 0.46 debt/equity reflect durable balance sheet strength, giving the company resilience to demand shocks and flexibility to fund capex or acquisitions. This structural financial robustness supports multi-quarter stability and strategic optionality.

Consistent moderate revenue growth

Sustained mid-single-digit revenue growth indicates steady market demand and execution across retail and foodservice channels. Over 2-6 months this supports predictable top-line cash generation and incremental scale benefits, helping absorb cost pressures if margins stabilize.

Operating cash flow strong vs earnings

An OCF-to-net-income ratio of 2.73 signals high quality of earnings and operational cash conversion. Even with negative free cash flow, robust operating cash generation underpins the company's ability to fund working capital, service obligations, and support strategic investments.

Negative Factors

Persistent negative free cash flow

Ongoing negative free cash flow erodes liquidity over time and constrains the firm's capacity to reinvest, pay dividends, or reduce debt without external financing. If not reversed, this structural cash deficit can limit strategic flexibility and raise refinancing risk.

Declining profitability and thin net margin

Material margin deterioration and a razor-thin net margin highlight weakening operating efficiency or rising input costs. Over months this undermines cash generation and return on capital, reducing room to absorb commodity swings or invest in growth initiatives without margin recovery.

Rising total debt warrants caution

Even a modest rise in total debt matters when profitability is compressed and free cash flow is negative. Increased leverage can elevate interest costs and constrain strategic moves; absent margin or cash-flow improvement, debt growth could tighten financial flexibility over the medium term.

S Foods Inc. Business Overview & Revenue Model

Company Description

S Foods Inc., a meat company, engages in manufacture, processing, wholesaling, retailing, and food servicing meat-related food products for consumers and professionals in Japan. It offers tontetchan for yakiniku and stir-fry with vegetable, uma-buta guts, and uma-buta seasoned and cooked pork liver; and marinated meat and yakiniku sauces. It serves retailers, lunch box makers, and restaurants. The company was formerly known as Stamina Foods Inc. and changed its name to S Foods Inc. in August 2000. S Foods Inc. was incorporated in 1967 and is based in Nishinomiya, Japan.

How the Company Makes Money

S Foods Inc. generates revenue primarily through the sale of its meat products, including beef, pork, and poultry, to wholesalers, retailers, and food service providers. The company also earns income from processed foods and ready-to-eat meals, which appeal to consumers seeking convenience. Key revenue streams include direct sales to supermarkets, restaurants, and food distributors. Additionally, S Foods Inc. may benefit from strategic partnerships with major retailers and food service companies, enhancing its market reach and distribution capabilities. The company's focus on quality products and strong brand reputation further contributes to its financial success.

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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	448.79B	444.55B	425.01B	399.21B	358.82B	327.48B
Gross Profit	46.45B	45.46B	51.88B	52.49B	56.04B	50.58B
EBITDA	12.29B	11.34B	20.01B	21.35B	22.77B	20.88B
Net Income	4.07B	2.67B	9.07B	10.57B	11.94B	9.96B
Balance Sheet
Total Assets	246.78B	230.59B	224.24B	204.78B	181.52B	172.39B
Cash, Cash Equivalents and Short-Term Investments	33.59B	41.61B	49.86B	46.86B	41.86B	40.28B
Total Debt	56.31B	55.59B	52.81B	45.27B	40.02B	36.97B
Total Liabilities	116.41B	100.73B	97.67B	87.47B	75.36B	77.89B
Stockholders Equity	122.21B	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	7.38B	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	-2.03B	7.33B	3.14B	470.00M	-7.33B

S Foods Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2722.00
• 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:2292, the sentiment is Positive. The current price of 2722 is below the 20-day moving average (MA) of 2932.95, below the 50-day MA of 2762.96, and above the 200-day MA of 2648.07, indicating a bullish trend. The MACD of 93.29 indicates Positive momentum. The RSI at 65.33 is Neutral, neither overbought nor oversold. The STOCH value of 38.35 is Neutral, 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
1333	75 Outperform	¥210.64B	9.58	9.42%	2.84%	2.63%	-7.81%
8041	72 Outperform	¥22.04B	4.38	―	2.46%	5.27%	9.51%
2292	70 Neutral	¥95.95B	11.97	―	3.59%	4.55%	79.33%
9955	65 Neutral	¥38.12B	11.38	―	0.72%	-2.02%	103.08%
2874	64 Neutral	¥74.48B	37.74	―	1.86%	4.41%	-41.71%
2938	63 Neutral	¥56.23B	28.30	―	0.34%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

S Foods Inc. Corporate Events

S Foods Lifts Profit Outlook Despite Lower Sales Forecast on Plant Delay

S Foods Inc. revised its full-year consolidated forecast for the fiscal year ended February 28, 2026, lowering projected net sales from ¥475.0 billion to ¥468.0 billion but significantly raising profit estimates, with operating profit now expected at ¥8.8 billion, ordinary profit at ¥10.0 billion, and profit attributable to owners of parent at ¥8.0 billion, implying a sharp increase in earnings per share. The company attributed the reduced sales outlook to the delayed start of operations at its new Aurora plant in the United States, now expected to commence in April 2026, while the substantial upward revision in profit reflects strong performance in its domestic business and the recording of gains on the sale of fixed assets and investment securities as extraordinary income, signaling improved profitability despite a modest top-line shortfall.

The most recent analyst rating on (JP:2292) stock is a Hold with a Yen2622.00 price target. To see the full list of analyst forecasts on S Foods Inc. stock, see the JP:2292 Stock Forecast page.

S Foods Doubles Operating Profit and Hikes Dividend on Strong Nine-Month Results

S Foods Inc. reported solid results for the nine months ended November 30, 2025, with net sales rising 5.7% year-on-year to ¥346.7 billion and operating profit more than doubling, up 105.7% to ¥6.8 billion. Ordinary profit climbed 80.9% to ¥7.7 billion, while profit attributable to owners of parent surged 362.8% to ¥6.8 billion, lifting basic earnings per share to ¥215.84 and sharply improving comprehensive income. The balance sheet expanded, with total assets increasing to ¥255.6 billion and equity up to ¥125.3 billion, though the equity ratio slipped to 49.0% from 52.8%, indicating higher leverage as the company grows. S Foods maintained its dividend stance, projecting a full-year payout of ¥104 per share, up from ¥89 the prior year, and raised its full-year outlook to ¥468.0 billion in net sales and ¥8.0 billion in profit attributable to owners of parent, implying strong earnings growth that underscores improved profitability and shareholder returns despite a more leveraged capital structure.

The most recent analyst rating on (JP:2292) stock is a Hold with a Yen2622.00 price target. To see the full list of analyst forecasts on S Foods Inc. stock, see the JP:2292 Stock Forecast page.