Kakiyasu Honten Co., Ltd. (2294) AI Stock Analysis

• Market Cap: ¥28.09B
• Dividend Yield: 3.23%
• Average Volume (3M): 14.89K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.23
• Revenue Growth: -0.31%
• EPS Growth: -37.42%
• Country: JP
• Employees: 838
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): N/A
• Shares Outstanding: 12,446,700
• 10 Day Avg. Volume: 13,440
• 30 Day Avg. Volume: 14,886
• PEG Ratio: -0.82
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 35.45
• 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: 65 Neutral
• Price Target: ¥2,876.00 ▲(8.24% Upside)

The score is primarily supported by a very strong, low-risk balance sheet, but is constrained by weakening profitability and inconsistent cash conversion. Technical indicators are mildly positive but not strong enough to offset the longer-term trend headwind, while valuation looks expensive on P/E despite a solid dividend yield.

Positive Factors

Strong Balance Sheet

A near-zero debt level significantly reduces solvency risk and interest-rate sensitivity, providing a stable financial foundation for the company.

Stable Gross Margin

A stable gross margin supports earnings quality and indicates effective cost management, which is crucial for long-term profitability.

Equity-to-Asset Ratio

A high equity-to-asset ratio provides a cushion against financial instability, enhancing the company's resilience to economic fluctuations.

Negative Factors

Declining Profitability

A decline in net margin indicates weakening profitability, which can affect the company's ability to reinvest in growth and maintain competitive positioning.

Volatile Cash Flow

Inconsistent cash flow generation can hinder the company's ability to fund operations and growth initiatives, impacting long-term financial health.

Revenue Growth Concerns

Flat or declining revenue growth raises concerns about the company's ability to expand its market presence and sustain long-term growth.

Kakiyasu Honten Co., Ltd. Business Overview & Revenue Model

Company Description

Kakiyasu Honten Co., Ltd., a food company, produces and sells prepared food products in Japan. The company offers dressed meat, such as beef, pork, and chicken; Japanese confectioneries; and processed food products. It also operates buffet style restaurants serving Japanese, Chinese, or western cuisine. The company was founded in 1871 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kakiyasu Honten Co., Ltd. generates revenue through multiple streams. A significant portion of income is derived from its retail operations, where it sells prepared foods and delicacies directly to consumers. The company also operates a chain of restaurants, providing dining services that contribute to its revenue. Another key revenue stream is the sale of fresh and processed meat products, which are distributed through various retail channels. Additionally, the company may engage in partnerships with other businesses to expand its market reach and explore new business opportunities, further enhancing its revenue potential.

Kakiyasu Honten Co., Ltd. Financial Statement Overview

Summary

Kakiyasu Honten Co., Ltd. shows strong financial stability with a debt-free balance sheet and robust equity position. However, challenges in revenue growth and declining free cash flow raise concerns about future profitability and cash generation capabilities.

Income Statement

The company's gross profit margin stands at 54.0%, indicating strong cost management. However, the net profit margin is relatively low at 3.8%, suggesting potential inefficiencies in managing other expenses. Revenue has slightly declined over the years, with a 2.2% drop from the previous year, reflecting challenges in maintaining sales growth.

Balance Sheet

The company has a robust balance sheet with no debt, resulting in a debt-to-equity ratio of 0.0. The equity ratio is strong at 81.4%, highlighting a solid reliance on equity financing. Return on equity is decent at 7.9%, indicating satisfactory profitability relative to shareholders' equity.

Cash Flow

The company has experienced a significant drop in free cash flow, down 74.9% from the previous year, which is a concern. Operating cash flow to net income ratio is relatively stable at 1.0, showing efficient conversion of profits into cash. However, the free cash flow to net income ratio has decreased, indicating potential challenges in generating free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.95B	36.10B	37.05B	37.90B	38.00B	37.29B
Gross Profit	15.06B	19.58B	20.00B	20.18B	19.75B	18.42B
EBITDA	1.60B	2.13B	2.74B	3.71B	3.76B	2.86B
Net Income	671.00M	701.00M	1.40B	1.89B	1.70B	263.00M
Balance Sheet
Total Assets	18.25B	19.20B	21.69B	20.62B	20.00B	18.81B
Cash, Cash Equivalents and Short-Term Investments	6.93B	8.00B	10.71B	10.98B	10.55B	8.02B
Total Debt	94.00M	52.00M	0.00	12.00M	13.00M	19.00M
Total Liabilities	3.87B	4.15B	4.03B	3.93B	4.17B	4.01B
Stockholders Equity	14.38B	15.04B	17.66B	16.68B	15.83B	14.80B
Cash Flow
Free Cash Flow	0.00	751.00M	383.00M	1.53B	3.53B	926.00M
Operating Cash Flow	0.00	1.75B	1.41B	2.01B	3.74B	1.15B
Investing Cash Flow	0.00	-2.95B	-1.15B	-527.00M	-418.00M	-433.00M
Financing Cash Flow	0.00	-905.00M	-895.00M	-1.05B	-789.00M	-789.00M

Kakiyasu Honten Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2657.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2294, the sentiment is Positive. The current price of 2657 is below the 20-day moving average (MA) of 2663.90, above the 50-day MA of 2641.56, and below the 200-day MA of 2715.49, indicating a neutral trend. The MACD of 15.17 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 57.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2294.

Kakiyasu Honten Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7481	78 Outperform	¥22.52B	7.62	―	4.11%	8.87%	-17.91%
8006	78 Outperform	¥30.62B	12.09	―	1.94%	3.15%	27.71%
7520	77 Outperform	¥34.62B	7.69	―	1.93%	6.11%	15.68%
8142	72 Outperform	¥42.49B	9.01	―	3.82%	3.39%	29.30%
9996	68 Neutral	¥20.53B	14.60	―	2.06%	2.66%	1.00%
2294	65 Neutral	¥28.09B	36.71	―	3.23%	-0.31%	-37.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Kakiyasu Honten Co., Ltd. Corporate Events

Kakiyasu Honten Reports Mixed Financial Results for First Half of 2025

Kakiyasu Honten Co., Ltd. reported its consolidated financial results for the six months ending October 31, 2025, showing a slight increase in net sales by 1.4% compared to the previous year. However, the company experienced declines in operating and ordinary profits by 5.3% and 4.7% respectively. Despite these challenges, the company maintained a stable equity-to-asset ratio of 79.1%, indicating a strong financial position. The forecast for the fiscal year ending April 30, 2026, suggests a modest growth in net sales and profit attributable to owners, reflecting cautious optimism in the company’s future performance.