Kadoya Sesame Mills Incorporated (2612) AI Stock Analysis

• Market Cap: ¥46.00B
• Dividend Yield: 2.55%
• Average Volume (3M): 3.69K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.24
• Revenue Growth: 8.21%
• EPS Growth: 20.27%
• Country: JP
• Employees: 550
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 92.70
• Shares Outstanding: 9,400,000
• 10 Day Avg. Volume: 4,590
• 30 Day Avg. Volume: 3,690
• PEG Ratio: 3.11
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 399.18
• 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: 74 Outperform
• Price Target: ¥5,824.00 ▲(45.60% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial resilience (very low leverage and solid profitability), balanced against a sharp TTM revenue decline and somewhat variable cash flow. Technicals are bullish but appear overextended, while valuation is reasonable with a moderate dividend yield.

Positive Factors

Conservative balance sheet

The company’s exceptionally conservative balance sheet, with TTM debt-to-equity around 0.6%, materially lowers financial risk and preserves strategic flexibility. Low leverage supports stable capital allocation (dividends, capex, or M&A), helps absorb input-price shocks, and underpins multi-month resilience in operations and supplier relationships.

Strong recent cash generation

Robust TTM operating cash flow (~¥5.6B) and free cash flow (~¥5.2B), with FCF nearly matching net income, indicate high earnings quality and reliable internal funding. Durable cash conversion supports reinvestment in product lines and distribution, underwrites consistent payouts, and reduces reliance on external financing over the medium term.

Stable profitability and business model

Consistent gross (~27%), operating (~10%) and net (~7%) margins reflect a profitable core packaged-foods business with branded sesame products. The dual consumer-branded and B2B sales model diversifies demand channels, helping sustain margins and providing a durable earnings base even if top-line growth cycles fluctuate.

Negative Factors

Sharp TTM revenue decline

A sharp trailing-twelve-month revenue decline erodes scale and limits the company’s ability to spread fixed costs, weakening pricing leverage with retailers and suppliers. Sustained top-line contraction would pressure marketing and R&D investments needed to maintain brand relevance and could force margin trade-offs to preserve volume.

Margin erosion vs 2022 peaks

Margins have declined from 2022 highs, indicating rising input or competitive pressure that reduces profitability headroom. If margins remain compressed, the company’s capacity to fund growth, absorb future cost inflation, or expand marketing will be constrained, making earnings more sensitive to commodity and pricing cycles.

Cash flow volatility

Year-to-year variability in operating and free cash flow, including a notably weak FY2025, undermines predictability for capital planning and distributions. Volatile cash generation increases execution risk for sustained investments, makes dividend consistency harder to guarantee, and raises refinancing or working-capital pressures during adverse cycles.

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 generates revenue through the sale of its core products, including various grades of sesame oil and seeds, which are sold to food manufacturers, restaurants, and retailers. The company benefits from multiple revenue streams, including bulk sales to commercial clients and packaged products sold in retail outlets. Additionally, Kadoya may engage in export activities, expanding its market reach and diversifying its income sources. Strategic partnerships with food distributors and suppliers further enhance its distribution capabilities, allowing Kadoya to tap into new markets and increase sales volume. The company's focus on high-quality products and adherence to food safety regulations also contribute to its competitive advantage and profitability.

Kadoya Sesame Mills Incorporated Financial Statement Overview

Summary

Overall financials are resilient: an exceptionally conservative balance sheet (minimal leverage) and solid profitability. Offsetting this strength, TTM revenue is sharply negative and margins are below 2022 peaks, while cash flow—though strong in TTM—has shown year-to-year volatility.

Income Statement

Profitability is solid but trending weaker. In TTM (Trailing-Twelve-Months), gross margin is ~27% and net margin is ~7%, with operating profitability around ~10%, indicating a consistently profitable core business. However, the margin profile is below the stronger 2022 level (net margin ~8.6%, operating margin ~12.3%), and revenue growth in TTM (Trailing-Twelve-Months) is sharply negative, which is a major near-term concern despite stable earnings generation.

Balance Sheet

The balance sheet is exceptionally conservative. Debt is minimal across periods (TTM (Trailing-Twelve-Months) debt-to-equity ~0.6%), leaving the company with very low financial risk and high flexibility. Equity steadily increased over the years, and returns on equity are steady in the mid-to-high single digits (~6.6%–8.9%), which is healthy for a low-leverage packaged foods business, though not outstanding.

Cash Flow

Cash generation is strong in TTM (Trailing-Twelve-Months), with operating cash flow (~¥5.6B) and free cash flow (~¥5.2B) both robust, and free cash flow close to reported earnings (free cash flow to net income ~0.93), suggesting good earnings quality. That said, cash flow has been volatile year-to-year (notably weak in FY2025 annual), so the recent strength is positive but should be viewed with some caution until consistency is proven.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.06B	39.45B	35.68B	33.69B	32.19B	35.10B
Gross Profit	10.88B	10.15B	9.78B	9.44B	10.16B	12.88B
EBITDA	5.13B	4.51B	4.71B	4.73B	5.55B	4.96B
Net Income	2.83B	2.36B	2.25B	2.22B	2.77B	2.10B
Balance Sheet
Total Assets	44.86B	43.54B	42.67B	41.53B	39.36B	36.31B
Cash, Cash Equivalents and Short-Term Investments	10.21B	7.88B	8.70B	6.89B	6.15B	2.86B
Total Debt	217.00M	65.00M	68.00M	72.00M	0.00	1.00M
Total Liabilities	7.80B	8.27B	8.32B	8.71B	8.21B	7.21B
Stockholders Equity	37.06B	35.27B	34.35B	32.82B	31.15B	29.10B
Cash Flow
Free Cash Flow	5.22B	83.00M	2.70B	1.77B	3.86B	1.62B
Operating Cash Flow	5.61B	384.00M	2.97B	2.46B	4.54B	2.71B
Investing Cash Flow	-534.00M	-258.00M	-239.00M	-720.00M	-473.00M	-846.00M
Financing Cash Flow	-920.00M	-925.00M	-922.00M	-1.00B	-781.00M	-3.01B

Kadoya Sesame Mills Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 4000 is below the 20-day moving average (MA) of 4720.50, below the 50-day MA of 4283.80, and above the 200-day MA of 3878.20, indicating a bullish trend. The MACD of 269.20 indicates Negative momentum. The RSI at 70.09 is Negative, neither overbought nor oversold. The STOCH value of 68.75 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	74 Outperform	¥46.00B	16.28	―	2.55%	8.21%	20.27%
2809	71 Outperform	¥612.87B	19.98	9.28%	1.30%	5.50%	27.32%
2602	69 Neutral	¥195.10B	8.27	12.56%	3.44%	3.80%	63.03%
4404	69 Neutral	¥23.40B	2.43	―	2.54%	2.80%	154.89%
2613	65 Neutral	¥67.93B	18.46	―	3.77%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2607	57 Neutral	¥317.54B	14.54	―	1.45%	20.02%	―

Kadoya Sesame Mills Incorporated Corporate Events

Kadoya Sesame Mills Delivers Strong Profit Growth and Solid Balance Sheet in Q3 FY2026

Kadoya Sesame Mills reported consolidated results for the third quarter of the fiscal year ending March 2026 showing modest top-line growth and strong profit expansion. Net sales rose 2.0% year-on-year to ¥30,499 million, while operating profit increased 26.2% to ¥3,549 million and ordinary profit climbed 21.9% to ¥3,717 million, lifting profit attributable to owners of parent by 22.6% to ¥2,544 million and earnings per share to ¥276.43. The company’s financial position also strengthened, with total assets rising to ¥44,862 million, net assets to ¥37,056 million, and the capital adequacy ratio improving to 82.6%, indicating a robust balance sheet that supports its ongoing operations and provides resilience for stakeholders, although no interim dividend was paid for the second quarter.

The most recent analyst rating on (JP:2612) stock is a Buy with a Yen4663.00 price target. To see the full list of analyst forecasts on Kadoya Sesame Mills Incorporated stock, see the JP:2612 Stock Forecast page.