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

• Market Cap: ¥197.70B
• Dividend Yield: 3.44%
• Average Volume (3M): 63.81K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.50
• Revenue Growth: 3.80%
• EPS Growth: 63.03%
• Country: JP
• Employees: 3,078
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 134.34
• Shares Outstanding: 33,716,255
• 10 Day Avg. Volume: 60,660
• 30 Day Avg. Volume: 63,810
• PEG Ratio: -0.80
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 27.45
• 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: 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: 69 Neutral
• Price Target: ¥6,428.00 ▲(21.28% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven by attractive valuation (low P/E and solid dividend yield) and a positive price trend above major moving averages. These positives are tempered by the biggest risk: weak cash-flow conversion and negative TTM free cash flow, which reduces confidence in near-term earnings quality and funding flexibility.

Positive Factors

Diversified revenue streams

Nisshin OilliO sells across consumer packaged goods, bulk commercial/industrial oils, and value-added specialty materials. This multi-channel model spreads demand risk, helps stabilize volumes across cycles, and supports cross-selling and margin uplift over a 2–6 month horizon and beyond.

Revenue rebound and improving profitability

A large TTM revenue rebound and stronger net margins signal recovering demand and better pricing or mix. Improved top-line and profitability enhance earnings power, create scope for reinvestment, and raise sustainable returns on capital, strengthening fundamentals over the medium term.

Manageable leverage and rising returns

Debt-to-equity near 0.57 with building equity and a ~12% ROE indicates the company is generating respectable returns while keeping leverage moderate. That balance supports strategic flexibility and resilience to shocks, provided cash conversion stabilizes, over coming quarters.

Negative Factors

Weak cash conversion

Cash generation is a key structural weakness: operating cash flow is only a fraction of reported earnings and TTM free cash flow is deeply negative. Persistent weak cash conversion impairs the firm's ability to self-fund capex/dividends and increases reliance on external financing, reducing flexibility.

Raw material cost exposure

As an edible oils and fats manufacturer, margins are sensitive to vegetable oil and oilseed price swings. If the company cannot fully pass higher input costs to customers, margin compression can persist, creating structural volatility in earnings and cash flow over the medium term.

Modest margins; durability risk

Reported margins are modest for the sector and show early signs of pressure versus annual figures. Limited margin cushions reduce the firm's ability to absorb cost shocks or fund growth from internal cash, heightening the risk that profitability gains may prove hard to sustain over 2–6 months.

Nisshin OilliO Group, Ltd. Business Overview & Revenue Model

Company Description

The Nisshin OilliO Group,Ltd. engages in oil and meal, processed oil and fat, fine chemical, and health science businesses in Japan, China, Taiwan, Malaysia, Singapore, Indonesia, the United States, and Europe. The company offers edible oil for use in household, commercial, and food processing applications; and oil meal, soy food, soy protein, dressings, and healthy food products, as well as foods for the elderly and nursing care patients, etc. It also provides margarines and shortenings, processed palm oil products, oils and fats for chocolates, etc.; and fine chemicals, including medium-chain triglycerides, food ingredients, chemical products, and raw materials for cosmetics, etc. In addition, the company develops and sells functional raw materials for use in the fields of pharmaceuticals and industrial products; meals for food and livestock feed; and food for diet and lifestyle-related diseases. Further, it is involved in the logistics, information-related services, sales promotion, and insurance agency businesses. Additionally, the company imports and sells fine chemical products, including oil for industrial and cosmetic uses, MCTs, etc.; manufactures and sells palm oil and specialty fats, chocolate products for commercial use, and vegetable oils; and manufactures confectionery supplies. The Nisshin OilliO Group,Ltd. was incorporated in 1907 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nisshin OilliO Group generates revenue through multiple key streams. The primary source of income comes from the sale of edible oils and fats, which are distributed to both retail and food service sectors. The company also earns revenue from its food processing operations, where it supplies various food manufacturers with specialized fats and oils. Additionally, Nisshin OilliO engages in partnerships with other food industry players to develop and market new products, leveraging its expertise in oil processing and nutritional science. The company benefits from economies of scale in production, enabling competitive pricing which attracts a broad customer base. Furthermore, export activities to international markets contribute significantly to its overall revenue.

Nisshin OilliO Group, Ltd. Financial Statement Overview

Summary

Income statement strength (revenue +73.5% TTM and improved profitability) is offset by weak cash-flow quality: operating cash flow is very low versus earnings and TTM free cash flow is negative. Balance sheet leverage is manageable (debt-to-equity ~0.57) but still moderate, limiting flexibility if cash generation remains uneven.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp revenue rebound (+73.5% growth) and materially higher bottom-line results (net margin ~4.3% vs ~2.4% in FY2025). Profitability is positive across the stack (gross margin ~13.3%, EBIT margin ~6.9%), but margins remain modest for the category and TTM gross margin is slightly lower than the most recent annual level, suggesting some ongoing input-cost/price-mix pressure. Overall, earnings power improved meaningfully, but margin durability is the key watch item.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.57 in TTM (Trailing-Twelve-Months), an improvement versus the higher leverage seen in FY2023, and equity has been building over time. Returns also strengthened (TTM return on equity ~12.3%), indicating better profitability on the capital base. However, absolute debt remains sizable and leverage is still moderate (not low), which can limit flexibility if margins soften or cash generation stays uneven.

Cash Flow

Cash generation is the weakest area: TTM (Trailing-Twelve-Months) operating cash flow is low relative to earnings (about 0.09x of net income) and free cash flow is negative (about -18.1B), implying working-capital/build or elevated investment needs. While prior years include stronger cash conversion (FY2024 positive free cash flow) and the annual FY2025 free cash flow was still positive, the TTM step-down raises questions on sustainability of earnings quality and near-term funding needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	543.60B	530.88B	513.54B	556.57B	432.78B	336.31B
Gross Profit	72.48B	74.74B	74.32B	65.62B	56.99B	60.39B
EBITDA	48.71B	31.68B	31.58B	25.61B	21.54B	20.68B
Net Income	23.26B	12.85B	15.15B	11.16B	8.60B	9.24B
Balance Sheet
Total Assets	444.72B	388.24B	393.38B	374.45B	344.51B	292.15B
Cash, Cash Equivalents and Short-Term Investments	23.02B	17.15B	20.43B	13.04B	9.98B	11.04B
Total Debt	116.99B	98.88B	104.62B	111.82B	97.83B	59.52B
Total Liabilities	227.40B	190.15B	200.82B	203.04B	180.19B	138.90B
Stockholders Equity	205.38B	187.15B	182.62B	162.56B	156.22B	145.55B
Cash Flow
Free Cash Flow	-18.07B	5.69B	21.95B	-6.83B	-36.77B	-7.81B
Operating Cash Flow	9.63B	21.17B	36.72B	398.00M	-26.63B	6.34B
Investing Cash Flow	-5.62B	-9.59B	-16.08B	-6.14B	-9.33B	-14.63B
Financing Cash Flow	-3.33B	-13.88B	-14.59B	6.34B	34.47B	-5.81B

Nisshin OilliO Group, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5300 is below the 20-day moving average (MA) of 5865.50, below the 50-day MA of 5587.80, and above the 200-day MA of 5153.91, indicating a bullish trend. The MACD of 124.67 indicates Negative momentum. The RSI at 71.55 is Negative, neither overbought nor oversold. The STOCH value of 85.63 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	¥48.30B	17.10	―	2.55%	8.21%	20.27%
2915	72 Outperform	¥37.66B	12.92	―	2.23%	-0.25%	-41.09%
2602	69 Neutral	¥197.70B	8.38	12.56%	3.44%	3.80%	63.03%
4404	69 Neutral	¥24.29B	2.52	―	2.54%	2.80%	154.89%
2613	65 Neutral	¥69.15B	18.79	―	3.77%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2607	57 Neutral	¥342.82B	15.70	―	1.45%	20.02%	―

Nisshin OilliO Group, Ltd. Corporate Events

Nisshin OilliO Lifts Sales but Faces Margin Pressure in Q3 FY2025

Nisshin OilliO reported consolidated net sales of ¥416.97 billion for the third quarter of FY2025, a 3.1% year-on-year increase driven mainly by higher prices and volumes in its Global Oil & Fat and Processed Oil & Fat business, while overseas sales rose to 29.4% of the total. Despite this top-line growth, operating profit fell 20.2% to ¥13.52 billion and ordinary profit dropped 24.3%, as higher oil and fat costs, lower household-use volumes, and mark-to-market losses on palm oil weighed on margins, though profit attributable to owners of the parent surged due to non-operating factors.

By segment, Global Oil & Fat and Processed Oil & Fat posted robust sales gains and higher gross profit per unit, but saw profit pressured by palm oil valuation losses, while the Oil, Fat & Meal division suffered from lower unit profitability amid higher input costs and weaker household demand. Processed Food & Materials benefited from higher chocolate product prices that lifted unit gross margins despite volume declines, and the Fine Chemical business grew domestic cosmetic ingredient volumes, partially offset by weaker sales at overseas subsidiaries, reflecting a mixed but strategically resilient performance across the group’s portfolio.

The most recent analyst rating on (JP:2602) stock is a Buy with a Yen6451.00 price target. To see the full list of analyst forecasts on Nisshin OilliO Group, Ltd. stock, see the JP:2602 Stock Forecast page.

Nisshin OilliO Profit Jumps on Asset Sale Despite Weaker Core Earnings

The Nisshin OilliO Group reported consolidated net sales of ¥416.97 billion for the nine months ended December 31, 2025, up 3.1% year on year, while operating and ordinary profit declined 20.2% and 24.3% respectively amid margin pressure. Profit attributable to owners of parent, however, surged 85.5% to ¥22.59 billion, largely driven by a ¥23.16 billion gain on sale of non-current assets booked as extraordinary income.

Total assets rose to ¥444.72 billion and net assets to ¥217.32 billion, though the capital adequacy ratio eased to 46.2% from 48.2%, reflecting balance sheet expansion and increased treasury stock. The company maintained its dividend plan with an interim payment of ¥90 per share and a full-year forecast of ¥180, signaling continued shareholder returns despite weaker core profitability.

For the full fiscal year ending March 31, 2026, Nisshin OilliO forecasts modest sales growth to ¥540 billion but expects operating and ordinary profit to fall more than 20%, underlining structural earnings pressure in its core businesses. Excluding one-off extraordinary items, full-year profit attributable to owners of parent is projected at ¥9 billion, highlighting that the current earnings uplift is not purely operational and may prompt investor focus on the sustainability of future profit levels.

The most recent analyst rating on (JP:2602) stock is a Buy with a Yen6451.00 price target. To see the full list of analyst forecasts on Nisshin OilliO Group, Ltd. stock, see the JP:2602 Stock Forecast page.

Nisshin OilliO Nears Completion of ¥10 Billion Share Buyback Program

The Nisshin OilliO Group has reported progress on its ongoing share buyback program, under which it is repurchasing its own common stock in the market via the Tokyo Stock Exchange. Between January 1 and January 31, 2026, the company acquired 116,400 shares for a total of ¥638.27 million, bringing cumulative repurchases since the June 17, 2025 board resolution to 1,762,300 shares at a total cost of approximately ¥8.88 billion, out of an approved maximum of 2.5 million shares and ¥10 billion through March 31, 2026. The continued execution of this sizeable buyback underscores management’s focus on capital efficiency and shareholder returns, and could support the company’s share price and earnings per share as the program approaches completion.

The most recent analyst rating on (JP:2602) stock is a Buy with a Yen6350.00 price target. To see the full list of analyst forecasts on Nisshin OilliO Group, Ltd. stock, see the JP:2602 Stock Forecast page.

Nisshin OilliO Advances Share Buyback, Acquires ¥774 Million in Treasury Stock in December

The Nisshin OilliO Group has reported progress on its ongoing share buyback program, acquiring 150,600 of its own common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of ¥774.7 million. This transaction forms part of a broader Board-approved repurchase plan, authorized in June 2025, that allows the company to buy back up to 2.5 million shares or ¥10 billion by March 31, 2026, under which it has cumulatively acquired 1,645,900 shares worth approximately ¥8.24 billion as of the end of December; the buyback supports capital efficiency and shareholder returns, and signals continued management commitment to optimizing the company’s capital structure.

The most recent analyst rating on (JP:2602) stock is a Hold with a Yen5542.00 price target. To see the full list of analyst forecasts on Nisshin OilliO Group, Ltd. stock, see the JP:2602 Stock Forecast page.

Nisshin OilliO Group Advances Treasury Share Acquisition

The Nisshin OilliO Group, Ltd. has announced progress in its acquisition of treasury shares, as part of a resolution made by its Board of Directors in June 2025. The company acquired 191,400 shares worth 981,943,500 yen between November 1 and November 30, 2025, through the Tokyo Stock Exchange, contributing to a cumulative total of 1,495,300 shares acquired, valued at 7,466,430,500 yen, as of November 30, 2025.

The most recent analyst rating on (JP:2602) stock is a Hold with a Yen5497.00 price target. To see the full list of analyst forecasts on Nisshin OilliO Group, Ltd. stock, see the JP:2602 Stock Forecast page.

Nisshin OilliO Group Announces Treasury Share Disposal for Compensation Plan

The Nisshin OilliO Group, Ltd. has announced the disposal of 84,900 treasury shares as part of its ongoing stock-based compensation plan. This move aims to align the interests of the company’s directors with shareholders by linking compensation to stock performance, thereby enhancing corporate value over the medium to long term. The disposal is set at a price of 5,100 yen per share, with minimal expected impact on the secondary market.

The most recent analyst rating on (JP:2602) stock is a Hold with a Yen5497.00 price target. To see the full list of analyst forecasts on Nisshin OilliO Group, Ltd. stock, see the JP:2602 Stock Forecast page.

Nisshin OilliO Expands Stock-Based Compensation Plan

The Nisshin OilliO Group, Ltd. has announced an additional acquisition of shares for its stock-based compensation plan, which is designed for its directors and corporate officers. This move, approved by the Board of Directors, involves the entrustment of funds to acquire additional shares, enhancing the company’s commitment to aligning leadership incentives with shareholder interests.

The most recent analyst rating on (JP:2602) stock is a Hold with a Yen5497.00 price target. To see the full list of analyst forecasts on Nisshin OilliO Group, Ltd. stock, see the JP:2602 Stock Forecast page.