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

• Market Cap: ¥28.67B
• Dividend Yield: 3.1%
• Average Volume (3M): 12.98K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.23
• Revenue Growth: -1.50%
• EPS Growth: -42.51%
• Country: JP
• Employees: 838
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 15.40
• Shares Outstanding: 12,446,700
• 10 Day Avg. Volume: 10,470
• 30 Day Avg. Volume: 12,983
• PEG Ratio: -0.56
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 75.15
• 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: 61 Neutral
• Price Target: ―

Kakiyasu Honten Co., Ltd. demonstrates financial stability with a strong balance sheet, but faces significant challenges in revenue growth and cash flow generation. The technical outlook is currently bearish, suggesting potential further downside in the near term. Valuation metrics are moderate, but they do not offer a strong buying signal given the company's operational challenges.

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	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	37.05B	37.90B	38.00B	37.29B	43.94B
Gross Profit	20.00B	20.18B	19.75B	18.42B	21.62B
EBITDA	2.74B	3.71B	3.76B	2.86B	3.18B
Net Income	1.40B	1.89B	1.70B	263.00M	1.50B
Balance Sheet
Total Assets	21.69B	20.62B	20.00B	18.81B	20.13B
Cash, Cash Equivalents and Short-Term Investments	10.71B	10.98B	10.55B	8.02B	8.09B
Total Debt	0.00	12.00M	13.00M	19.00M	13.00M
Total Liabilities	4.03B	3.93B	4.17B	4.01B	4.80B
Stockholders Equity	17.66B	16.68B	15.83B	14.80B	15.33B
Cash Flow
Free Cash Flow	383.00M	1.53B	3.53B	926.00M	1.69B
Operating Cash Flow	1.41B	2.01B	3.74B	1.15B	2.23B
Investing Cash Flow	-1.15B	-527.00M	-418.00M	-433.00M	-666.00M
Financing Cash Flow	-895.00M	-1.05B	-789.00M	-789.00M	-686.00M

Kakiyasu Honten Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2739.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 2739 is above the 20-day moving average (MA) of 2725.15, above the 50-day MA of 2721.08, and below the 200-day MA of 2760.01, indicating a neutral trend. The MACD of 1.03 indicates Positive momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 49.01 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
2296	73 Outperform	304.82B	19.75	4.59%	4.00%	8.96%	9.34%
2292	70 Neutral	87.10B	21.41	2.19%	3.23%	3.99%	-32.61%
2281	68 Neutral	122.86B	18.45	5.58%	3.27%	2.04%	-10.89%
2294	61 Neutral	¥28.67B	36.89	―	3.10%	-1.50%	-42.51%
2293	50 Neutral	5.41B	-9.03	-14.23%	―	-1.29%	-1001.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%