Itoham Yonekyu Holdings, Inc. (2296) AI Stock Analysis

• Market Cap: ¥262.94B
• Dividend Yield: 3.02%
• Average Volume (3M): 174.41K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.50
• Revenue Growth: 3.47%
• EPS Growth: -15.46%
• Country: JP
• Employees: 8,124
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Packaged Foods
• EPS (TTM): 14.68
• Shares Outstanding: 57,471,012
• 10 Day Avg. Volume: 106,470
• 30 Day Avg. Volume: 174,413
• PEG Ratio: -1.19
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.92
• 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: ¥4,200.00
• Price Target Upside: -15.07% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥5,544.00 ▲(12.11%Upside)

The overall stock score for Itoham Yonekyu Holdings, Inc. is driven by strong technical momentum and stable financial performance, despite concerns over declining profitability and free cash flow. The valuation is somewhat high, which tempers the attractiveness of the stock.

Itoham Yonekyu Holdings, Inc. Business Overview & Revenue Model

Company Description

Itoham Yonekyu Holdings, Inc. is a prominent player in the food industry, primarily engaged in the production and sale of processed meat products. Headquartered in Japan, the company operates through several segments, including fresh meat, processed foods, and logistics. Its core offerings encompass a wide range of meats such as pork, beef, and chicken, along with processed goods like ham, sausages, and prepared meals, catering to both domestic and international markets.

How the Company Makes Money

Itoham Yonekyu Holdings, Inc. generates revenue through the sale of fresh and processed meat products. The company's key revenue streams include retail sales to supermarkets and food service providers, where it supplies a variety of meat products. Additionally, it benefits from its logistics segment, which supports its distribution capabilities. Strategic partnerships with retailers and food service companies enhance its market reach. The company also exports its products, contributing to its earnings from international markets.

Itoham Yonekyu Holdings, Inc. Financial Statement Overview

Summary

Itoham Yonekyu Holdings, Inc. exhibits stable revenue growth and strong operational cash flows, maintaining a healthy capitalization level. However, declining net income, EBIT, and free cash flow trends are concerning, indicating a need to improve profitability margins and manage capital expenditures effectively.

Income Statement

Itoham Yonekyu Holdings, Inc. exhibits a stable income statement with consistent revenue growth over the years. The gross profit margin has been steady, reflecting efficient cost management. However, there has been a decline in both EBIT and net income, indicating pressure on operating profitability. Despite this, the company maintains a healthy EBITDA margin, highlighting strong operational cash flow generation.

Balance Sheet

The balance sheet is robust, with a healthy equity ratio indicating strong capitalization. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity has been declining, which is a point of concern as it reflects reduced profitability relative to shareholders' equity. Overall, the company maintains a stable financial position with adequate asset management.

Cash Flow

The cash flow statement presents mixed results. There is a significant decline in free cash flow, primarily due to increased capital expenditures, which could impact cash availability for other uses. Operating cash flow remains positive and relatively strong compared to net income, suggesting good cash conversion efficiency. However, the negative trend in free cash flow growth is concerning and could pose liquidity challenges if continued.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
988.77B	955.58B	922.68B	854.37B	842.67B
	Gross Profit
133.27B	132.56B	130.13B	131.90B	139.98B
	EBIT
19.58B	22.34B	22.99B	24.61B	24.02B
	EBITDA
36.15B	38.41B	39.47B	41.43B	42.48B
	Net Income Common Stockholders
13.10B	15.55B	16.98B	19.12B	20.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.99B	23.23B	22.74B	47.99B	50.95B
	Total Assets
467.01B	462.57B	436.76B	413.12B	394.09B
	Total Debt
62.54B	43.36B	45.67B	37.85B	39.58B
	Net Debt
41.55B	20.44B	22.93B	-10.14B	-11.37B
	Total Liabilities
180.69B	177.24B	167.50B	150.38B	146.44B
	Stockholders Equity
285.61B	284.69B	268.68B	262.14B	247.06B
Cash Flow		Free Cash Flow
-9.35B	13.03B	-11.27B	7.25B	29.95B
	Operating Cash Flow
10.02B	29.39B	3.95B	18.47B	40.86B
	Investing Cash Flow
-20.64B	-16.01B	-22.93B	-11.25B	-10.84B
	Financing Cash Flow
7.47B	-13.28B	-6.84B	-10.65B	-21.10B

Itoham Yonekyu Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4945.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2296, the sentiment is Positive. The current price of 4945 is below the 20-day moving average (MA) of 4957.75, above the 50-day MA of 4662.60, and above the 200-day MA of 3993.32, indicating a neutral trend. The MACD of 80.08 indicates Positive momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 7.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2296.

Itoham Yonekyu Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2296	72 Outperform	¥262.94B	21.48		3.02%	3.47%	-15.46%
2288	71 Outperform	€44.72B	7.99	8.38%	2.94%	2.69%	―
8043	67 Neutral	¥63.14B	5.17		2.75%	6.23%	62.08%
2282	66 Neutral	€498.75B	19.27	4.96%	2.75%	5.15%	-3.91%
Sector *	65 Neutral	$8.89B	15.04	4.68%	6.15%	3.59%	-2.51%
2291	45 Neutral	¥3.55B	―		―	-2.27%	-526.69%
2293	44 Neutral	¥5.16B	―		0.80%	-0.43%	-499.91%

Itoham Yonekyu Holdings, Inc. Corporate Events

Itoham Yonekyu Holdings Announces Strategic Amendments to Articles of Incorporation

Itoham Yonekyu Holdings, Inc. announced amendments to its Articles of Incorporation, transitioning to a company with an Audit and Supervisory Committee. This change aims to enhance governance by separating execution and supervision roles. Additionally, the company is revising its business objectives to align with its Long-Term Business Strategy 2035, focusing on accelerating growth in overseas markets and expanding into new business areas.

The most recent analyst rating on (JP:2296) stock is a Hold with a Yen4200.00 price target. To see the full list of analyst forecasts on Itoham Yonekyu Holdings, Inc. stock, see the JP:2296 Stock Forecast page.

Itoham Yonekyu Announces Dividend and Commemorative Payout

Itoham Yonekyu Holdings, Inc. announced a dividend from retained earnings, with a final dividend per share of JPY 75 for the fiscal year ending March 31, 2025, resulting in an annual dividend of JPY 145. The company plans to maintain this dividend level for the fiscal year ending March 2026, with an additional commemorative dividend to celebrate its 10th anniversary, bringing the total expected annual dividend to JPY 320 per share.

The most recent analyst rating on (JP:2296) stock is a Hold with a Yen4200.00 price target. To see the full list of analyst forecasts on Itoham Yonekyu Holdings, Inc. stock, see the JP:2296 Stock Forecast page.

Itoham Yonekyu Holdings Reports Decline in Profits but Increases Dividends

Itoham Yonekyu Holdings, Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decline in key financial metrics such as operating profit and ordinary profit compared to the previous year. Despite these challenges, the company has announced a significant increase in dividends for the fiscal year ending March 31, 2026, reflecting a strategic focus on shareholder returns.

Itoham Yonekyu Holdings Announces Executive Changes to Strengthen Leadership

Itoham Yonekyu Holdings, Inc. announced changes in its executive officers, effective April 1, 2025. Yuko Nakajima has been appointed as Managing Executive Officer and Chief Marketing Officer, reflecting the company’s strategic focus on enhancing its marketing and operational capabilities in the processed food business division. These changes are part of the company’s ongoing efforts to strengthen its leadership team and improve its market positioning.

Itoham Yonekyu Marks 10th Anniversary with Commemorative Dividend

Itoham Yonekyu Holdings Inc. announced a commemorative dividend to celebrate its 10th anniversary, reflecting gratitude to shareholders. The dividend totals approximately 10 billion yen, with payments of 175 yen per share, split between the first and third quarters of the fiscal year ending March 31, 2026. This move underscores the company’s commitment to shareholder returns and aligns with its Medium-Term Management Plan 2026.