Kadoya Sesame Mills Incorporated (2612) AI Stock Analysis

• Market Cap: ¥33.12B
• Dividend Yield: 2.78%
• Average Volume (3M): 2.23K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.15
• Revenue Growth: 9.29%
• EPS Growth: 12.78%
• Country: JP
• Employees: 550
• Sector: Consumer Defensive
• Sector Strength: 76
• Industry: Packaged Foods
• EPS (TTM): 30.65
• Shares Outstanding: 9,400,000
• 10 Day Avg. Volume: 2,900
• 30 Day Avg. Volume: 2,230
• PEG Ratio: 4.83
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.52
• 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: 78 Outperform
• Price Target: ―

Kadoya Sesame Mills has a strong financial foundation with stable profitability and no debt, which significantly contributes to its robust financial performance. Technical indicators suggest potential caution due to mixed signals, including bearish momentum and possible overbought conditions. The stock's valuation is reasonable, providing a fair balance of growth and income potential.

Kadoya Sesame Mills Incorporated Business Overview & Revenue Model

Company Description

Kadoya Sesame Mills Incorporated engages in the development, manufacture, and sale of sesame oil products in Japan. The company offers cooking oil, such as pure, hot, and white sesame oil. It also provides edible seed products comprising sesame paste and roasted sesame seed; and sesame seed meal. The company offers its products for retail and food service/industrial uses. Its products are also used in general households and restaurants, as well as raw materials for processed food. Kadoya Sesame Mills Incorporated was founded in 1858 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kadoya Sesame Mills Incorporated generates revenue primarily through the sale of its sesame-based products, with sesame oil being the flagship product. The company's revenue streams are derived from both domestic sales and international exports, catering to a broad range of clients including wholesalers, retailers, and food service businesses. Key factors contributing to Kadoya's earnings include its established brand reputation, the growing global demand for healthy cooking oils, and strategic distribution partnerships that enhance its market reach. Additionally, the company may engage in collaborations with other food manufacturers to supply sesame oil as an ingredient, further diversifying its income sources.

Kadoya Sesame Mills Incorporated Financial Statement Overview

Summary

Kadoya Sesame Mills Incorporated demonstrates strong financial performance with stable profitability, low leverage, and efficient cost management. The company maintains a strong equity position with no debt, enhancing financial stability. While cash flow generation remains positive, there is room for improvement in cash flow efficiency and conversion.

Income Statement

Kadoya Sesame Mills has shown strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 7.86% from the previous year. The gross profit margin is healthy at 25.73% TTM, indicating efficient cost management. The net profit margin stands at 5.89% TTM, reflecting solid profitability. However, there was a slight decrease in EBIT margin to 8.00% TTM, which may need monitoring.

Balance Sheet

The balance sheet is robust with a strong equity base, reflected in an equity ratio of 82.28% TTM. The company has no debt, leading to a favorable debt-to-equity ratio of 0. This indicates financial stability and low leverage risk. Return on Equity (ROE) is at a respectable 6.40% TTM, demonstrating effective use of equity.

Cash Flow

Kadoya Sesame Mills has a positive free cash flow with a TTM free cash flow to net income ratio of 0.36, indicating healthy cash generation relative to profits. However, free cash flow growth has declined by 69.59% TTM, suggesting a need for improvement in operational cash efficiency. The operating cash flow to net income ratio is at 0.47 TTM, which could be improved for better cash earnings conversion.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
38.49B	35.68B	33.69B	32.19B	35.10B	33.78B
	Gross Profit
9.90B	9.78B	9.44B	10.16B	12.88B	13.07B
	EBIT
3.08B	3.12B	2.64B	3.45B	3.02B	3.25B
	EBITDA
4.21B	4.71B	4.73B	5.55B	4.96B	4.59B
	Net Income Common Stockholders
2.27B	2.25B	2.22B	2.77B	2.10B	2.55B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.06B	8.70B	6.89B	6.15B	2.86B	4.00B
	Total Assets
43.03B	42.67B	41.53B	39.36B	36.31B	38.35B
	Total Debt
0.00	68.00M	72.00M	0.00	1.00M	2.00B
	Net Debt
-6.06B	-8.63B	-6.81B	-6.15B	-2.86B	-2.00B
	Total Liabilities
7.63B	8.32B	8.71B	8.21B	7.21B	10.32B
	Stockholders Equity
35.41B	34.35B	32.82B	31.15B	29.10B	28.04B
Cash Flow		Free Cash Flow
821.00M	2.70B	1.77B	3.86B	1.62B	-2.75B
	Operating Cash Flow
1.06B	2.97B	2.46B	4.54B	2.71B	1.68B
	Investing Cash Flow
-224.00M	-239.00M	-720.00M	-473.00M	-846.00M	-4.23B
	Financing Cash Flow
-925.00M	-922.00M	-1.00B	-781.00M	-3.01B	893.00M

Kadoya Sesame Mills Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3600.00
• 50DMA: Negative
• 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:2612, the sentiment is Positive. The current price of 3600 is below the 20-day moving average (MA) of 3606.50, below the 50-day MA of 3617.43, and above the 200-day MA of 3564.54, indicating a neutral trend. The MACD of -3.77 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 30.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2612.

Kadoya Sesame Mills Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2612	78 Outperform	¥33.12B	14.06		2.78%	9.29%	12.78%
Sector *	64 Neutral	$8.84B	14.60	4.80%	202.45%	3.49%	2.06%
8WC		€953.66M	13.05	6.86%	3.51%	―	―
2811	74 Outperform	¥257.64B	16.36		1.97%	25.63%	-24.35%
2819	71 Outperform	¥23.94B	17.94		1.75%	9.26%	-2.42%
2804	66 Neutral	¥23.67B	37.62		1.98%	1.73%	―
2613	64 Neutral	¥64.30B	9.21		3.59%	-8.22%	22.28%

Kadoya Sesame Mills Incorporated Corporate Events

Kadoya Sesame Mills Sees Sales Growth Amid Profit Challenges

Kadoya Sesame Mills reported a 10.3% increase in net sales to 29,885 million yen for the quarter ending December 2024 compared to the previous year. Despite this growth, operating profit saw a slight decline of 1.2% to 2,811 million yen, with comprehensive income also falling by 18.8%. This mixed financial performance suggests some operational challenges even as the company maintains a strong capital adequacy ratio of 82.3%.