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

• Market Cap: ¥341.93B
• Dividend Yield: 2.61%
• Average Volume (3M): 128.23K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.53
• Revenue Growth: 6.54%
• EPS Growth: 15.08%
• Country: JP
• Employees: 8,124
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 57,471,012
• 10 Day Avg. Volume: 104,320
• 30 Day Avg. Volume: 128,230
• PEG Ratio: -1.17
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -25.38
• 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: 64 Neutral
• Price Target: ¥6,474.00 ▲(15.61% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by mixed financial performance: strong revenue growth and a solid balance sheet are offset by thin margins and weak/volatile cash flow (negative TTM free cash flow). Technicals are supportive with a clear uptrend and positive momentum, while valuation is reasonable but not cheap given modest profitability, with the dividend providing some support.

Positive Factors

Revenue Growth

Sustained TTM revenue growth near +97% indicates durable demand and broader market penetration for its processed-meat portfolio. Strong top-line expansion supports scale benefits, better fixed-cost absorption, and the ability to invest in capacity and product development over the next several quarters.

Balance Sheet Strength

Low leverage (D/E ~0.35) and a sizable equity base provide financial flexibility to fund capex, absorb commodity or demand shocks, and pursue strategic investments without excessive refinancing risk, supporting multi-quarter operational stability and strategic optionality.

Diversified Channels

A business model selling to supermarkets, foodservice and distribution reduces customer concentration and smooths demand cycles. Channel diversification preserves volume stability, enhances procurement scale for raw meat inputs, and supports reliable revenue streams over the medium term.

Negative Factors

Thin and Declining Margins

Persistently thin operating and net margins and a multi-year downward trend leave little buffer against input-cost or pricing pressures. Limited margin headroom constrains reinvestment, reduces shock resilience, and makes profitability highly sensitive to commodity and logistic cost swings over time.

Weak & Volatile Cash Generation

Negative TTM free cash flow and poor cash conversion versus earnings indicate working-capital strain or inconsistent operations. Volatile cash generation limits the company’s ability to fund capex, sustain dividends, or build reserves, raising execution risk across planning horizons of several quarters.

Low Return on Equity

Mid-single-digit and declining ROE signals constrained capital efficiency and weaker profitability outcomes on invested equity. Low returns reduce the payoff from reinvestment, limit shareholder value creation potential, and suggest structural pressure on operational effectiveness and competitive positioning.

Itoham Yonekyu Holdings, Inc. Business Overview & Revenue Model

Company Description

Itoham Yonekyu Holdings Inc. engages in the manufacture and sale of processed meat and processed/precooked food products in Japan. It offers ham/sausage, pizza/snacks, noodles, and cheese products. The company was founded in 1928 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Itoham Yonekyu Holdings generates revenue primarily through the sale of its meat products, which include processed and packaged meats sold through supermarkets and food service providers. The company also earns income from its processed food segment, which includes ready-to-eat meals and frozen foods. Key revenue streams are driven by both retail sales and bulk sales to restaurants and food manufacturers. Additionally, strategic partnerships with major retailers and food service companies enhance its distribution capabilities, while an emphasis on product innovation helps maintain customer loyalty and attract new consumers, further contributing to its earnings.

Itoham Yonekyu Holdings, Inc. Financial Statement Overview

Summary

Revenue growth is strong, and the balance sheet looks sound with manageable leverage, but profitability is thin and has weakened versus prior years. The biggest drag is cash flow quality: TTM free cash flow is negative and cash conversion has been volatile.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (about +97%), but profitability remains modest for the category with net margin around 1.6% and operating margin around 2.6%. Margins have generally drifted down versus prior years (net margin ~2.4% in 2021 to ~1.3–1.6% in 2025), suggesting higher costs or pricing pressure. Earnings are positive and fairly stable, but the current margin profile leaves less room for shocks.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.35 in TTM (Trailing-Twelve-Months), supported by a sizable equity base. Returns on equity are positive but mid-single-digit (~5.7% TTM), down from earlier years, pointing to softer efficiency/profitability rather than balance sheet strain. Overall, the balance sheet appears sound, though the uptick in leverage versus recent annual periods is worth monitoring.

Cash Flow

Cash generation is the weak spot: TTM (Trailing-Twelve-Months) free cash flow is negative and meaningfully below net income (free cash flow is about -44% of net income). Operating cash flow is also low relative to earnings in TTM, indicating weaker cash conversion and/or working-capital drag. While 2024 showed strong positive free cash flow, results have been volatile across years, raising execution and consistency risk.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.05T	988.77B	955.58B	922.68B	854.37B	842.67B
Gross Profit	140.92B	133.27B	132.56B	130.13B	131.90B	139.98B
EBITDA	41.96B	36.15B	38.41B	39.47B	41.43B	42.48B
Net Income	16.82B	13.10B	15.55B	16.98B	19.12B	20.20B
Balance Sheet
Total Assets	549.53B	467.01B	462.57B	436.76B	413.12B	394.09B
Cash, Cash Equivalents and Short-Term Investments	21.61B	20.99B	23.23B	22.74B	47.99B	50.95B
Total Debt	102.62B	62.54B	43.36B	45.67B	37.85B	39.58B
Total Liabilities	251.96B	180.69B	177.24B	167.50B	150.38B	146.44B
Stockholders Equity	296.91B	285.61B	284.69B	268.68B	262.14B	247.06B
Cash Flow
Free Cash Flow	-6.65B	-9.35B	13.03B	-11.27B	7.25B	29.95B
Operating Cash Flow	15.05B	10.02B	29.39B	3.95B	18.47B	40.86B
Investing Cash Flow	-23.63B	-20.64B	-16.01B	-22.93B	-11.25B	-10.84B
Financing Cash Flow	10.43B	7.47B	-13.28B	-6.84B	-10.65B	-21.10B

Itoham Yonekyu Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5600 is below the 20-day moving average (MA) of 6155.50, below the 50-day MA of 5925.47, and above the 200-day MA of 5408.31, indicating a bullish trend. The MACD of 102.28 indicates Negative momentum. The RSI at 68.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, 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
2871	72 Outperform	¥538.55B	20.47	9.86%	2.58%	1.08%	2.71%
2288	67 Neutral	¥60.52B	12.24	6.48%	2.27%	1.46%	―
2296	64 Neutral	¥341.93B	21.77	―	2.61%	6.54%	15.08%
2282	63 Neutral	¥703.40B	22.54	6.04%	2.04%	5.55%	27.03%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2293	47 Neutral	¥6.13B	-35.43	―	―	-3.27%	-108.33%
2291	37 Underperform	¥2.09B	-4.68	―	―	-2.97%	-6.82%

Itoham Yonekyu Holdings, Inc. Corporate Events

Itoham Yonekyu Marks 10th Anniversary with ¥90 Commemorative Dividend

Itoham Yonekyu Holdings’ board has approved a commemorative dividend of ¥90 per share, totaling ¥5.107 billion, to shareholders of record as of December 31, 2025, with payment scheduled for March 5, 2026, funded from retained earnings. This payout is part of an approximately ¥10 billion commemorative dividend program marking the 10th anniversary of the business integration between Itoham and Yonekyu, and contributes to a forecast total dividend of ¥320 per share for the fiscal year ending March 31, 2026—comprising both ordinary and commemorative components—significantly raising the dividend on equity to 6.8% and underscoring the company’s policy of progressive dividends and enhanced shareholder returns.

The most recent analyst rating on (JP:2296) stock is a Hold with a Yen5879.00 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 Lifts FY2025 Profit Outlook on Strong Meat Business Recovery

For the first nine months of FY2025, Itoham Yonekyu Holdings reported solid consolidated growth, with net sales up 8.1% and ordinary profit rising 29.8%. The Meat Division delivered revenue and profit growth, supported by improved profitability in the domestic livestock farming business and a recovery in earnings at ANZCO, while the Processed Food Division saw declines as price revisions and product renewals could not fully offset volume losses from weak demand. Reflecting the stronger performance, the company raised its full-year FY2025 outlook, now projecting net sales of ¥1.05 trillion (up 6.2%) and ordinary profit of ¥28.5 billion (up 37.3%), including an upward revision to meat segment profit, and expects both its meat and processed food businesses to achieve year-on-year revenue and profit growth despite the earlier weakness in processed foods.

The most recent analyst rating on (JP:2296) stock is a Hold with a Yen6328.00 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 Raises Full-Year Outlook on Strong Nine-Month Earnings and Higher Dividends

Itoham Yonekyu Holdings reported solid growth for the nine months ended December 31, 2025, with net sales, operating profit, ordinary profit and profit attributable to owners of parent all rising year on year, and a sharp improvement in comprehensive income. The company also maintained a strong financial position with a high equity ratio and announced an upward revision to its full-year earnings forecast for the fiscal year ending March 31, 2026, projecting further gains in sales and profits and lifting annual earnings per share guidance. In line with its Medium-Term Management Plan 2026, the group confirmed a progressive dividend policy targeting a DOE of at least 3%, detailing generous ordinary and commemorative dividends for FY2026, signaling management confidence and providing increased returns to shareholders while keeping its consolidation scope and accounting policies unchanged.

The most recent analyst rating on (JP:2296) stock is a Hold with a Yen6328.00 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 Revamps Board and Executive Lineup to Strengthen Governance and Operations

Itoham Yonekyu Holdings has announced a series of senior management changes, including the appointment of Akira Maeda, currently an executive officer overseeing accounting and finance, as a new full-time Audit & Supervisory Committee member, replacing Shin Takahashi, who will resign from that role. The company is also restructuring its executive lineup effective April 1, 2026, with adjustments to responsibilities across core business divisions: expanding the remit of Koichi Ito to include logistics, redefining the compliance and corporate strategy oversight of CFO Katsumi Nozawa, elevating several executives within the meat and processed food businesses, and appointing new managing and senior executive officers to strengthen operational control and governance across group companies in processed foods, meat sales, and related subsidiaries.

The most recent analyst rating on (JP:2296) stock is a Hold with a Yen5834.00 price target. To see the full list of analyst forecasts on Itoham Yonekyu Holdings, Inc. stock, see the JP:2296 Stock Forecast page.