Nisshin OilliO Group, Ltd. (2602) AI Stock Analysis

• Market Cap: €160.43B
• Dividend Yield: 3.62%
• Average Volume (3M): 100.52K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.55
• Revenue Growth: 3.38%
• EPS Growth: -15.18%
• Country: JP
• Employees: 3,078
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 20.77
• Shares Outstanding: 33,716,255
• 10 Day Avg. Volume: 109,770
• 30 Day Avg. Volume: 100,516
• PEG Ratio: -1.48
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 66.94
• 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

• Rating: 69 Neutral
• Price Target: ¥5,342.00 ▲(7.70%Upside)

Nisshin OilliO Group, Ltd. scores well due to its solid financial performance and attractive valuation, with a stable revenue growth and low P/E ratio. Technical indicators suggest a neutral short-term trend. The absence of earnings call data and notable corporate events keeps the focus on fundamental and technical analyses.

Nisshin OilliO Group, Ltd. Business Overview & Revenue Model

Company Description

Nisshin OilliO Group, Ltd. is a Japanese company that operates primarily in the food and beverage industry. It specializes in the production and distribution of edible oils, including household and commercial cooking oils, as well as margarine, mayonnaise, and processed foods. The company also engages in health and nutrition business activities, providing functional foods and supplements. Nisshin OilliO is known for its commitment to quality and innovation in oil processing and food product development.

How the Company Makes Money

Nisshin OilliO Group, Ltd. generates revenue through the manufacturing and sale of a wide range of edible oils and related food products. Its key revenue streams include domestic and international sales of cooking oils to both retail and commercial customers. The company also earns income from its processed food segment, which includes products such as margarine, shortening, and dressings. Additionally, Nisshin OilliO capitalizes on its health and nutrition segment by marketing functional foods and dietary supplements. Strategic partnerships with other food manufacturers and distributors further enhance its market reach and revenue potential. The company invests in research and development to innovate and maintain a competitive edge in the food industry.

Nisshin OilliO Group, Ltd. Financial Statement Overview

Summary

Nisshin OilliO Group demonstrates strong revenue growth and profitability, supported by a stable balance sheet. However, operational efficiency pressures and cash flow volatility could challenge future financial stability. The company's ability to manage its debt and maintain cash flow stability will be crucial for sustaining its financial health.

Income Statement

Nisshin OilliO Group has shown consistent revenue growth, with a notable increase from 2023 to TTM (Trailing-Twelve-Months) in 2024. Gross Profit Margin and Net Profit Margin have remained stable, indicating efficient cost management. However, the decline in EBIT and EBITDA margins from the annual 2024 report to TTM suggests potential pressure on operational efficiency.

Balance Sheet

The company's Debt-to-Equity ratio indicates moderate leverage, with a stable equity base. Return on Equity has been positive, reflecting profitability. However, the high level of total debt compared to equity could pose risks if interest rates rise or cash flows decline.

Cash Flow

Operating cash flow has fluctuated significantly, but the current TTM shows positive free cash flow. The Free Cash Flow to Net Income ratio indicates efficient cash generation relative to net income, yet volatility in historical cash flow performance suggests potential liquidity concerns.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	527.25B	513.54B	556.57B	432.78B	336.31B	333.42B
Gross Profit	73.99B	74.32B	65.62B	56.99B	60.39B	61.52B
EBITDA	28.43B	31.58B	25.61B	20.58B	20.42B	20.65B
Net Income	13.49B	15.15B	11.16B	8.60B	9.24B	8.29B
Balance Sheet
Total Assets	405.50B	393.38B	374.45B	344.51B	292.15B	277.43B
Cash, Cash Equivalents and Short-Term Investments	21.25B	20.43B	13.04B	9.98B	11.04B	25.32B
Total Debt	104.35B	104.62B	111.82B	97.83B	59.52B	56.30B
Total Liabilities	204.46B	200.82B	203.04B	180.19B	138.90B	128.10B
Stockholders Equity	190.13B	182.62B	162.56B	156.22B	145.55B	139.34B
Cash Flow
Free Cash Flow	2.44B	21.95B	-6.83B	-36.77B	-7.81B	10.48B
Operating Cash Flow	19.33B	36.72B	398.00M	-26.63B	6.34B	22.42B
Investing Cash Flow	-14.88B	-16.08B	-6.14B	-9.33B	-14.63B	-14.24B
Financing Cash Flow	-818.00M	-14.59B	6.34B	34.47B	-5.81B	2.24B

Nisshin OilliO Group, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4960.00
• 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:2602, the sentiment is Positive. The current price of 4960 is above the 20-day moving average (MA) of 4851.25, above the 50-day MA of 4853.00, and above the 200-day MA of 4918.25, indicating a bullish trend. The MACD of 34.83 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 81.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2602.

Nisshin OilliO Group, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2612	74 Outperform	¥33.31B	14.13		2.76%	10.57%	4.52%
4404	72 Outperform	¥18.03B	8.96		3.40%	1.07%	-34.52%
2602	69 Neutral	€160.43B	12.49	6.86%	3.62%	3.38%	-15.18%
2613	66 Neutral	¥65.23B	9.35		1.01%	-5.54%	3.00%
2811	61 Neutral	¥255.59B	16.23		1.98%	25.63%	-24.35%
Sector *	50 Neutral	AU$2.23B	3.40	-14.55%	12.66%	7.38%	-66.34%
2607	46 Neutral	¥241.12B	108.14		1.85%	18.99%	-65.82%

Nisshin OilliO Group, Ltd. Corporate Events

Nisshin OilliO Group Acquires Treasury Shares to Boost Growth

The Nisshin OilliO Group, Ltd. has announced the acquisition of 435,300 treasury shares valued at approximately 2.04 billion yen as part of its strategy to improve profit growth and capital efficiency. This move aligns with the company’s medium-term business plan, Value UpX, which aims to enhance shareholder returns and support sustainable growth initiatives.

Nisshin OilliO Group Announces Treasury Share Repurchase Plan

The Nisshin OilliO Group, Ltd. has announced a resolution to acquire up to 500,000 of its own common shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3, at a maximum value of 2,345,000,000 yen. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 2,500,000 shares, representing 7.67% of the total issued shares, with a total acquisition value of up to 10,000,000,000 yen, to be executed by March 31, 2026. This strategic acquisition is expected to enhance shareholder value and optimize the company’s capital structure.

Nisshin OilliO Announces Strategic Treasury Share Acquisition and Cancellation

Nisshin OilliO Group, Ltd. has announced a strategic move to acquire and subsequently cancel a portion of its treasury shares, as part of its medium-term business plan, Value UpX. This initiative aims to boost profit growth and capital efficiency, with a maximum acquisition value of 10 billion yen for up to 2.5 million shares. The move is expected to enhance shareholder returns and support sustainable growth, aligning with the company’s commitment to balance growth investments and financial stability.

Nisshin OilliO Cleared in JFTC Antitrust Investigation

The Japan Fair Trade Commission conducted an investigation into The Nisshin OilliO Group, Ltd. regarding alleged antitrust violations in the sales of sesame oils. The commission issued a ‘cease and desist’ order to some businesses, but Nisshin OilliO was not subject to any such measures, indicating no unlawful conduct was found on their part.

Nisshin OilliO Group Reports Mixed Financial Results for FY2025

Nisshin OilliO Group, Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 3.4% increase in net sales to ¥530,878 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with respective decreases of 7.5%, 9.7%, and 15.2%. Despite these challenges, the company forecasts a positive outlook for the fiscal year ending March 31, 2026, with expected increases in net sales and profits, driven by extraordinary income from asset transfers.

Nisshin OilliO Group Revises Shareholder Return Policy in Value UpX Plan

Nisshin OilliO Group, Ltd. has revised its shareholder return policy under its medium-term business plan, Value UpX, to enhance stable and proactive returns to shareholders and improve capital efficiency. The company plans to pay a minimum dividend of ¥180 per share and aims for a 40% consolidated dividend payout ratio, excluding one-time gains. Additionally, it will purchase treasury shares worth ¥20 billion, balancing this with growth investments and financial soundness to increase corporate and shareholder value.

Nisshin OilliO Affirms Independence Amid Marubeni Stake

The Nisshin OilliO Group has announced its relationship with Marubeni Corporation, which holds a 16% voting stake, classifying it as an affiliated company. Despite this affiliation, Nisshin OilliO maintains operational independence, with no shared directors and independent decision-making processes. The company engages in significant business transactions with Marubeni, including the sale of oils and fats and the purchase of raw materials, while ensuring fair pricing to protect minority shareholders.