FRUTA FRUTA, Inc. (2586) AI Stock Analysis

• Market Cap: ¥14.47B
• Dividend Yield: N/A
• Average Volume (3M): 7.55M
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.91
• Revenue Growth: 106.61%
• EPS Growth: N/A
• Country: JP
• Employees: 23
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.85
• Shares Outstanding: 101,879,570
• 10 Day Avg. Volume: 2,678,650
• 30 Day Avg. Volume: 7,548,226
• PEG Ratio: -0.21
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 3.39
• P/FCF Ratio: -19.73
• 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: 62 Neutral
• Price Target: ¥151.00 ▼(-31.05% Downside)

The score is primarily constrained by consistently negative operating and free cash flow despite FY2025 profitability, which raises cash-conversion and sustainability risk. Offsetting this are a materially improved balance sheet (including zero debt) and supportive near-term technical momentum, while valuation remains relatively expensive with no dividend support.

Positive Factors

Stronger balance sheet (zero debt)

Zero debt and materially stronger equity improve financial flexibility and reduce interest burden, providing durable resilience through food-distribution cycles. A de-levered capital structure supports investment in working capital, supplier terms, or targeted M&A without near-term leverage stress.

FY2025 profitability turnaround

A sustained shift to positive operating profit and a ~10.6% net margin marks a structural inflection in unit economics. If maintained, this supports reinvestment, margin retention and the path to rebuilding reserves, enabling longer-term strategic initiatives and reduced reliance on external capital.

Stable gross margins

Consistent gross margins in the 30% range imply stable product economics and pricing power relative to COGS. For a distributor this durable margin profile provides a buffer against input and logistics cost swings and supports the sustainability of operating profits as volumes scale.

Negative Factors

Persistent negative operating and free cash flow

Negative OCF and FCF despite reported profits indicate weak cash conversion. Persistent cash burn constrains liquidity, forces reliance on external funding or equity, limits capex and working-capital management, and raises the risk of funding shortfalls if trends persist.

Turnaround is recent and unproven

Profitability arrived after several years of sizable losses, creating execution risk. The recent nature of the turnaround means the company must prove it can sustain margins, convert earnings to cash and endure downturns; absent multi-period confirmation, reversion risk remains material.

Very small workforce may limit scale

A headcount of 23 signals a small internal operating base for a distribution business. Limited scale can constrain commercial coverage, logistics control, credit management and collections, increasing dependence on third parties and elevating execution, growth and cash-conversion risks over the medium term.

FRUTA FRUTA, Inc. Business Overview & Revenue Model

Company Description

FRUTA FRUTA, Inc. (2586) is a Japanese company that specializes in the import, development, and sale of fruit-based products, primarily focusing on acai and other superfruits. The company operates within the food and beverage sector, offering a range of health-oriented products including juices, smoothies, frozen foods, and dietary supplements. FRUTA FRUTA emphasizes sustainability and health benefits in its product offerings, catering to health-conscious consumers.

How the Company Makes Money

FRUTA FRUTA, Inc. generates revenue through the sale of its fruit-based products in various formats, including retail distribution and direct-to-consumer sales. The company's key revenue streams include wholesale distribution to supermarkets and specialty health stores, online sales through its e-commerce platform, and partnerships with food service providers such as cafes and restaurants. Additionally, FRUTA FRUTA collaborates with international suppliers and cultivators to ensure a steady supply of high-quality raw materials, which supports its product development and enhances its market offerings. The company's focus on premium, health-focused products and strategic partnerships in the food and beverage industry significantly contribute to its earnings.

FRUTA FRUTA, Inc. Financial Statement Overview

Summary

FY2025 shows a sharp profitability turnaround and a much stronger balance sheet (notably zero debt and improved equity), but this is tempered by persistently negative operating and free cash flow across all years shown—including FY2025—indicating weak cash conversion and higher funding/liquidity risk. The turnaround is also recent after multiple loss-making years, adding sustainability risk.

Income Statement

Profitability improved sharply in FY2025, with revenue up ~24% and a swing to solid positive operating profit and net income (net margin ~10.6%) after multiple years of sizable losses (FY2020–FY2024 net margins were deeply negative). Gross margin has remained reasonably stable in the low-to-high 30% range, supporting the turnaround. The key weakness is the lack of consistency—FY2025 is a clear inflection, but it follows a long loss-making period, raising execution and sustainability risk.

Balance Sheet

The balance sheet strengthened materially, highlighted by zero debt in FY2025 versus meaningful leverage in prior years (including very high leverage in FY2020). Equity has expanded significantly and profitability turned positive (return on equity ~9.2% in FY2025), improving financial flexibility. The main drawback is that the business only recently returned to positive returns after several years of negative returns, so the improved profile is still somewhat “new” and needs to be sustained.

Cash Flow

Cash generation remains the biggest concern: operating cash flow and free cash flow are negative across every year shown, including FY2025 (operating cash flow about -¥437M; free cash flow about -¥439M) despite positive reported earnings. This indicates profits are not yet translating into cash, which can pressure liquidity and increase funding needs if it persists. While cash burn has fluctuated year to year, the consistent pattern of negative cash flow is a clear weakness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.15B	2.55B	1.14B	804.88M	780.17M	692.35M
Gross Profit	1.23B	960.14M	356.40M	312.26M	280.84M	254.66M
EBITDA	406.88M	253.32M	-276.59M	-306.11M	-320.08M	-253.92M
Net Income	399.82M	270.98M	-306.44M	-308.30M	-322.02M	-287.20M
Balance Sheet
Total Assets	3.88B	3.55B	1.64B	1.20B	1.51B	2.07B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.89B	377.72M	250.01M	558.12M	713.63M
Total Debt	0.00	0.00	300.00M	100.00M	100.00M	662.11M
Total Liabilities	789.40M	592.02M	668.78M	302.09M	206.73M	869.86M
Stockholders Equity	3.09B	2.96B	975.78M	899.31M	1.31B	1.20B
Cash Flow
Free Cash Flow	0.00	-438.57M	-248.81M	-310.77M	-360.97M	-209.63M
Operating Cash Flow	0.00	-436.55M	-248.81M	-310.77M	-360.97M	-203.92M
Investing Cash Flow	0.00	584.91M	35.66M	-744.00K	-674.00K	-11.87M
Financing Cash Flow	0.00	1.36B	339.45M	-240.00K	205.01M	788.14M

FRUTA FRUTA, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 219.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2586, the sentiment is Negative. The current price of 219 is above the 20-day moving average (MA) of 145.30, above the 50-day MA of 134.20, and above the 200-day MA of 208.79, indicating a neutral trend. The MACD of 1.76 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 8.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2586.

FRUTA FRUTA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7614	71 Outperform	¥10.37B	10.72	―	2.23%	7.53%	-17.97%
8030	68 Neutral	¥14.72B	4.88	―	3.17%	5.19%	11.04%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2586	62 Neutral	¥14.47B	25.71	―	―	106.61%	―
8039	61 Neutral	¥8.82B	20.39	―	0.95%	6.26%	67.81%
2816	60 Neutral	¥13.60B	45.34	―	1.29%	2.47%	-56.58%
7686	60 Neutral	¥12.98B	20.45	―	4.65%	4.62%	-56.98%