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

• Market Cap: €172.74B
• Dividend Yield: 3.39%
• Average Volume (3M): 77.64K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.54
• Revenue Growth: 4.12%
• EPS Growth: 60.25%
• Country: JP
• Employees: 3,078
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 515.01
• Shares Outstanding: 33,716,255
• 10 Day Avg. Volume: 59,440
• 30 Day Avg. Volume: 77,643
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €5,926.70
• Price Target Upside: 11.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥5,950.00 ▲(12.05% Upside)

Nisshin OilliO Group, Ltd. scores well due to its strong technical momentum and attractive valuation, with a low P/E ratio and solid dividend yield. However, financial performance is moderate due to challenges in profitability and cash flow management, which slightly dampens the overall score.

Nisshin OilliO Group, Ltd. Business Overview & Revenue Model

Company Description

Nisshin OilliO Group, Ltd. (2602) is a leading Japanese company primarily engaged in the production and distribution of edible oils and related products. The company operates in several sectors, including food products, fine chemicals, and healthcare, with a core focus on providing high-quality vegetable oils, margarine, and functional foods. Nisshin OilliO is known for its innovative approach to oil processing and its commitment to sustainability and health, serving both domestic and international markets.

How the Company Makes Money

Nisshin OilliO Group, Ltd. generates revenue through the manufacturing and sale of a diverse range of edible oils, including household cooking oils, oils for food service, and industrial oils. The company also produces and sells margarine, shortening, and other processed food products. A significant portion of its revenue comes from catering to both retail consumers and food industry clients. Additionally, Nisshin OilliO engages in the production of fine chemicals and raw materials for cosmetics and healthcare products, further diversifying its income streams. Strategic partnerships and collaborations with other food and chemical companies also contribute to its earnings, as do its efforts in expanding international distribution channels.

Nisshin OilliO Group, Ltd. Financial Statement Overview

Summary

Nisshin OilliO Group, Ltd. demonstrates strong revenue growth and a stable balance sheet, but faces challenges in profitability and cash flow management. The company should focus on improving net margins and cash flow efficiency to enhance financial health.

Income Statement

The company shows a strong revenue growth rate of 67.5% in the TTM period, indicating robust sales performance. Gross profit margin is healthy at 14.08%, but the net profit margin is relatively low at 2.42%, suggesting room for improvement in cost management. EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.

Balance Sheet

The debt-to-equity ratio is at 0.53, indicating a balanced approach to leveraging. Return on equity is modest at 6.87%, showing moderate profitability for shareholders. The equity ratio of 48.57% suggests a solid equity base supporting the company's assets.

Cash Flow

The company faces challenges with free cash flow, showing a significant decline in the TTM period. Operating cash flow to net income ratio is low at 0.20, indicating potential cash flow management issues. However, the free cash flow to net income ratio is positive, suggesting some ability to convert profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	534.46B	530.88B	513.54B	556.57B	432.78B	336.31B
Gross Profit	73.44B	74.74B	74.32B	65.62B	56.99B	60.39B
EBITDA	48.63B	31.68B	31.58B	25.61B	21.54B	20.68B
Net Income	24.36B	12.85B	15.15B	11.16B	8.60B	9.24B
Balance Sheet
Total Assets	410.25B	388.24B	393.38B	374.45B	344.51B	292.15B
Cash, Cash Equivalents and Short-Term Investments	16.84B	17.15B	20.43B	13.04B	9.98B	11.04B
Total Debt	101.98B	98.30B	104.62B	111.82B	97.83B	59.52B
Total Liabilities	199.97B	190.15B	200.82B	203.04B	180.19B	138.90B
Stockholders Equity	199.28B	187.15B	182.62B	162.56B	156.22B	145.55B
Cash Flow
Free Cash Flow	-17.96B	5.69B	21.95B	-6.83B	-36.77B	-7.81B
Operating Cash Flow	10.70B	21.17B	36.72B	398.00M	-26.63B	6.34B
Investing Cash Flow	-4.10B	-9.59B	-16.08B	-6.14B	-9.33B	-14.63B
Financing Cash Flow	-7.38B	-13.88B	-14.59B	6.34B	34.47B	-5.81B

Nisshin OilliO Group, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5310.00
• 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:2602, the sentiment is Positive. The current price of 5310 is above the 20-day moving average (MA) of 5254.00, above the 50-day MA of 5135.70, and above the 200-day MA of 4921.68, indicating a bullish trend. The MACD of 57.94 indicates Positive momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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
2602	77 Outperform	€172.74B	7.01	13.21%	3.39%	4.12%	60.25%
4404	72 Outperform	21.48B	2.34	9.09%	2.86%	2.25%	135.41%
2612	71 Outperform	34.87B	14.89	6.65%	2.64%	10.50%	-3.82%
2613	70 Outperform	68.62B	10.94	6.61%	2.89%	-4.47%	-7.10%
2811	70 Outperform	261.50B	20.42	7.83%	1.94%	11.08%	-46.09%
2607	60 Neutral	303.19B	374.35	1.06%	1.47%	19.69%	-61.83%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Nisshin OilliO Group, Ltd. Corporate Events

Nisshin OilliO Advances Treasury Share Acquisition

The Nisshin OilliO Group, Ltd. announced progress on its acquisition of treasury shares, acquiring 463,400 common shares valued at 2,181,444,500 yen between June 18 and June 30, 2025. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 2.5 million shares, aiming to enhance shareholder value and optimize capital structure.

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.