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

• Market Cap: ¥27.90B
• Dividend Yield: 3.23%
• Average Volume (3M): 14.89K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.24
• Revenue Growth: -0.31%
• EPS Growth: -37.42%
• Country: JP
• Employees: 838
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 3.04
• 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: 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.

Positive Factors

Balance Sheet Health

A debt-free balance sheet with a strong equity ratio of 81.4% provides financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest obligations.

Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support profitability even in competitive markets, providing a buffer against cost fluctuations.

Equity Financing

A high equity ratio signifies reliance on equity financing, reducing financial risk and enhancing the company's ability to weather economic downturns, supporting long-term sustainability.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates challenges in maintaining sales momentum, which could impact future profitability and market position if not addressed through strategic initiatives.

Free Cash Flow Decline

A significant drop in free cash flow raises concerns about the company's ability to generate cash for reinvestment and shareholder returns, potentially limiting growth and strategic flexibility.

Net Profit Margin

A low net profit margin suggests inefficiencies in managing expenses beyond cost of goods sold, which could hinder overall profitability and competitiveness in the long term.

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

Company Description

Kakiyasu Honten Co., Ltd. (2294) is a Japanese company primarily engaged in the production and retailing of food products. The company operates through various sectors, including the manufacture and sale of prepared foods, operation of restaurants, and the sale of fresh meat and processed meat products. Kakiyasu Honten is known for its high-quality offerings that cater to a diverse range of consumer tastes and preferences, leveraging its long-standing heritage and expertise in the food industry.

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: 2665.00
• 50DMA: Positive
• 100DMA: Negative
• 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 2665 is above the 20-day moving average (MA) of 2632.15, above the 50-day MA of 2633.72, and below the 200-day MA of 2730.51, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 69.93 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	¥20.18B	6.83	―	4.13%	8.87%	-17.91%
8006	78 Outperform	¥29.14B	11.50	―	1.97%	3.15%	27.71%
7520	77 Outperform	¥35.81B	7.95	―	1.90%	6.11%	15.68%
8142	72 Outperform	¥40.98B	8.69	―	3.81%	3.39%	29.30%
9996	68 Neutral	¥19.73B	14.03	―	2.08%	2.66%	1.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2294	61 Neutral	¥27.90B	36.47	―	3.23%	-0.31%	-37.42%