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

• Market Cap: ¥172.74B
• Dividend Yield: 3.44%
• Average Volume (3M): 63.81K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.55
• Revenue Growth: 3.80%
• EPS Growth: 63.03%
• Country: JP
• Employees: 3,078
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 63.63
• 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: 67 Neutral
• Price Target: ¥5,542.00 ▲(4.57% Upside)

The overall stock score of 66.9 reflects a mixed outlook. The company's strong revenue growth and attractive valuation are offset by weak technical indicators and concerns over cash flow management. Investors should be cautious of the bearish technical signals and focus on the company's ability to improve cash flow to support its growth.

Positive Factors

Revenue Growth

The significant revenue growth rate suggests robust market demand and effective expansion strategies, positioning the company for sustained long-term growth.

Balance Sheet Stability

A balanced debt-to-equity ratio indicates financial stability, providing the company with flexibility to invest in growth opportunities while managing risk.

Profitability Improvement

Improved net profit margins demonstrate effective cost management and pricing strategies, enhancing the company's ability to generate profits and reinvest in growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests liquidity challenges, which could constrain the company's ability to fund operations and growth initiatives without external financing.

Operational Efficiency

Moderate EBIT and EBITDA margins indicate room for operational efficiency improvements, which are crucial for enhancing profitability and competitiveness.

Cash Generation

A low operating cash flow to net income ratio highlights insufficient cash generation from operations, potentially impacting the company's ability to sustain growth and meet financial obligations.

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

Nisshin OilliO Group, Ltd. demonstrates strong revenue growth and improving profitability, supported by a stable balance sheet. However, cash flow management remains a concern, with negative free cash flow indicating potential liquidity challenges. The company should prioritize operational efficiency and cash flow improvements to sustain its growth trajectory and financial health.

Income Statement

Nisshin OilliO Group, Ltd. shows a solid revenue growth trajectory with a TTM (Trailing-Twelve-Months) revenue growth rate of 96.7%, indicating strong market demand or expansion. The gross profit margin is stable at 13.7%, and the net profit margin has improved to 4.6% in the TTM, reflecting enhanced profitability. However, the EBIT and EBITDA margins are moderate at 7.1% and 9.1%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is 0.51, indicating a balanced approach to leveraging, which is a positive sign of financial stability. The return on equity (ROE) is 12.8% in the TTM, showing effective use of equity to generate profits. The equity ratio stands at 46.8%, reflecting a strong equity base relative to total assets. Overall, the balance sheet is stable, but the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

The cash flow statement reveals challenges with free cash flow, which is negative in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 9.7%, suggesting that cash generation from operations is not fully supporting net income. The free cash flow to net income ratio is negative, highlighting the need for improved cash management. The company should focus on enhancing cash flow generation to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	539.63B	530.88B	513.54B	556.57B	432.78B	336.31B
Gross Profit	72.42B	74.74B	74.32B	65.62B	56.99B	60.39B
EBITDA	47.88B	31.68B	31.58B	25.61B	21.54B	20.68B
Net Income	23.84B	12.85B	15.15B	11.16B	8.60B	9.24B
Balance Sheet
Total Assets	429.94B	388.24B	393.38B	374.45B	344.51B	292.15B
Cash, Cash Equivalents and Short-Term Investments	27.13B	17.15B	20.43B	13.04B	9.98B	11.04B
Total Debt	112.11B	98.88B	104.62B	111.82B	97.83B	59.52B
Total Liabilities	217.54B	190.15B	200.82B	203.04B	180.19B	138.90B
Stockholders Equity	201.16B	187.15B	182.62B	162.56B	156.22B	145.55B
Cash Flow
Free Cash Flow	-16.87B	5.69B	21.95B	-6.83B	-36.77B	-7.81B
Operating Cash Flow	10.68B	21.17B	36.72B	398.00M	-26.63B	6.34B
Investing Cash Flow	-5.99B	-9.59B	-16.08B	-6.14B	-9.33B	-14.63B
Financing Cash Flow	2.65B	-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: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 5246.50, above the 50-day MA of 5180.80, and above the 200-day MA of 4989.76, indicating a bullish trend. The MACD of 43.83 indicates Negative momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 79.21 is Neutral, 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
4404	78 Outperform	¥23.93B	2.60	―	2.54%	2.80%	154.89%
2612	77 Outperform	¥36.76B	13.90	―	2.55%	8.21%	20.27%
2602	67 Neutral	¥172.74B	7.21	12.56%	3.44%	3.80%	63.03%
2811	66 Neutral	¥232.82B	19.79	―	2.11%	3.69%	-50.13%
2613	65 Neutral	¥67.17B	13.00	―	3.77%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2607	59 Neutral	¥332.76B	34.09	―	1.45%	20.02%	―

Nisshin OilliO Group, Ltd. Corporate Events

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.

Nisshin OilliO Advances in Treasury Share Acquisition Strategy

Nisshin OilliO Group, Ltd. has announced progress in its acquisition of treasury shares, having acquired 250,200 common shares valued at 1,283,625,000 yen between October 1 and October 31, 2025. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 2,500,000 shares, aiming to optimize capital structure and potentially enhance shareholder value.

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 Reports Mixed Financial Results with Strategic Adjustments

Nisshin OilliO Group, Ltd. reported its semi-annual financial results for the period ending September 30, 2025, showing a significant increase in net sales by 3.4% to ¥269,921 million. Despite this, the company experienced a decline in operating and ordinary profits by 32.6% and 33.0%, respectively. The profit attributable to owners of the parent surged by 146.1% due to extraordinary income, indicating a mixed performance with notable gains in comprehensive income. The company also revised its full-year forecast, expecting a decrease in operating and ordinary profits but a substantial rise in profit attributable to owners of the parent, reflecting strategic adjustments and market challenges.

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 Revises FY2025 Earnings Forecast Amid Rising Costs

The Nisshin OilliO Group, Ltd. has revised its full-year consolidated earnings forecasts for FY2025 due to challenges in implementing sales price revisions amidst rising supply chain costs and a decline in sales volume for household-use products. The company cites increased international biofuel demand and a weakening yen as factors contributing to a deteriorating cost environment, leading to a reduction in projected net sales and profits.

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.