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

• Market Cap: ¥262.68B
• Dividend Yield: 4.64%
• Average Volume (3M): 126.54K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.49
• Revenue Growth: 3.47%
• EPS Growth: -15.46%
• Country: JP
• Employees: 8,124
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Packaged Foods
• EPS (TTM): 14.68
• Shares Outstanding: 57,471,012
• 10 Day Avg. Volume: 118,270
• 30 Day Avg. Volume: 126,536
• PEG Ratio: 4.22
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.45
• 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: ¥4,266.67
• Price Target Upside: -13.89% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ¥5,544.00 ▲(11.89%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 leading Japanese food processing company engaged in the production and distribution of processed meats, fresh meats, and other food products. The company, formed through the merger of Itoham Foods Inc. and Yonekyu Corporation, operates in sectors including food processing, wholesale distribution, and retail. Its core products consist of ham, sausages, bacon, and a variety of fresh and processed meat products, catering to both domestic and international markets.

How the Company Makes Money

Itoham Yonekyu Holdings, Inc. generates revenue primarily through the sale of its meat products, including processed meats such as ham, sausages, and bacon, as well as fresh meats. The company sells these products to retailers, food service providers, and directly to consumers, both in Japan and overseas. Key revenue streams include wholesale distribution to supermarkets and other food retailers, direct sales through its own retail outlets, and exports to international markets. Strategic partnerships with other food companies and participation in joint ventures also contribute to its earnings, while economies of scale in production and distribution help in maintaining profitability.

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
EBITDA	36.15B	38.41B	39.47B	41.43B	42.48B
Net Income	13.10B	15.55B	16.98B	19.12B	20.20B
Balance Sheet
Total Assets	467.01B	462.57B	436.76B	413.12B	394.09B
Cash, Cash Equivalents and Short-Term Investments	20.99B	23.23B	22.74B	47.99B	50.95B
Total Debt	62.54B	43.36B	45.67B	37.85B	39.58B
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: 4955.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4955 is above the 20-day moving average (MA) of 4949.01, above the 50-day MA of 4897.39, and above the 200-day MA of 4096.08, indicating a bullish trend. The MACD of 28.49 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 30.39 is Neutral, 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	¥262.68B	21.46		4.64%	3.47%	-15.46%
Sector *	68 Neutral	¥197.01B	21.38	8.29%	2.28%	4.93%	0.72%
8043	67 Neutral	¥65.02B	5.32		2.67%	6.23%	62.04%
2288	66 Neutral	€46.79B	8.37	8.38%	2.69%	2.69%	―
2282	60 Neutral	¥485.07B	18.74	4.96%	2.74%	5.15%	-4.85%
2293	48 Neutral	¥5.19B	―		0.79%	-0.43%	-499.91%
2291	47 Neutral	¥3.57B	―		―	-2.27%	-526.69%

Itoham Yonekyu Holdings, Inc. Corporate Events

Itoham Yonekyu Completes Treasury Stock Disposal for Compensation

Itoham Yonekyu Holdings, Inc. has completed the payment procedures for the disposal of treasury stock as part of its Restricted Stock Compensation plan. This move, resolved by the Board of Directors, involves the disposal of 17,695 shares of common stock, valued at JPY 4,895 per share, totaling JPY 86,617,025. The shares are allocated to directors and executive officers, which could potentially align management interests with shareholder value and impact the company’s governance structure.

The most recent analyst rating on (JP:2296) stock is a Sell 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 Treasury Stock Disposal for Executive Compensation

Itoham Yonekyu Holdings, Inc. announced the disposal of treasury stock as part of a restricted stock compensation plan aimed at aligning the interests of its directors and executive officers with those of its shareholders. The plan involves issuing 17,695 shares of common stock to selected directors and executive officers, with a transfer restriction period set for 30 years to motivate long-term value enhancement and risk-sharing.

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 Maintains Independence Amid Mitsubishi’s Significant Stake

Itoham Yonekyu Holdings, Inc. has announced details regarding its controlling shareholder, Mitsubishi Corporation, which holds 41.16% of the company’s voting rights. Despite this significant stake, Itoham Yonekyu maintains its operational independence, ensuring that business activities and management decisions are conducted without undue influence from Mitsubishi. The company engages in transactions with Mitsubishi for the supply of meat and raw materials, ensuring competitive pricing by obtaining multiple quotes.

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 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.