Kadoya Sesame Mills Incorporated (2612) AI Stock Analysis

• Market Cap: ¥36.90B
• Dividend Yield: 2.55%
• Average Volume (3M): 3.69K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.17
• Revenue Growth: 8.21%
• EPS Growth: 20.27%
• Country: JP
• Employees: 550
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 93.03
• 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: 77 Outperform
• Price Target: ¥4,421.00 ▲(10.53% Upside)

Kadoya Sesame Mills scores well due to its strong financial position and positive technical indicators. The stock is reasonably valued with a supportive dividend yield. However, recent declines in revenue and free cash flow present challenges that need addressing to sustain long-term growth.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage reduces financial risk, providing stability and flexibility for long-term strategic investments.

Market Expansion

Strategic partnerships and distribution enhancements enable market expansion, increasing sales volume and diversifying revenue streams.

Stable Profit Margins

Stable profit margins reflect efficient operations and pricing power, supporting sustainable profitability despite market fluctuations.

Negative Factors

Revenue Decline

A decline in revenue suggests potential market or operational challenges, which could impact growth and require strategic adjustments.

Free Cash Flow Decline

Declining free cash flow can constrain reinvestment opportunities and affect liquidity, necessitating improved cash flow management.

Decreased Net Profit Margins

Slightly decreased net profit margins may indicate rising costs or pricing pressures, potentially affecting long-term profitability.

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

Kadoya Sesame Mills has a robust financial position with a strong balance sheet and stable profitability. However, recent revenue and free cash flow declines indicate potential market or operational challenges. The company should focus on reversing the revenue decline and improving cash flow generation to maintain its financial health.

Income Statement

Kadoya Sesame Mills shows a stable financial performance with a consistent gross profit margin around 25-28% over recent periods. However, the company experienced a revenue decline of 5.2% in the TTM period, indicating potential market challenges. Net profit margins have slightly decreased, but remain stable around 5.8%. The EBIT and EBITDA margins are healthy, reflecting efficient operations despite the revenue drop.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. Return on equity is stable at around 6.6%, showing consistent shareholder returns. The equity ratio is strong, highlighting a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis reveals some challenges, with a significant decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is moderate, suggesting adequate cash generation relative to net income. The free cash flow to net income ratio remains healthy, indicating efficient cash conversion, but the recent decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.40B	39.45B	35.68B	33.69B	32.19B	35.10B
Gross Profit	10.60B	10.15B	9.78B	9.44B	10.16B	12.88B
EBITDA	4.69B	4.51B	4.71B	4.73B	5.55B	4.96B
Net Income	2.65B	2.36B	2.25B	2.22B	2.77B	2.10B
Balance Sheet
Total Assets	44.31B	43.54B	42.67B	41.53B	39.36B	36.31B
Cash, Cash Equivalents and Short-Term Investments	9.44B	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	8.19B	8.27B	8.32B	8.71B	8.21B	7.21B
Stockholders Equity	36.12B	35.27B	34.35B	32.82B	31.15B	29.10B
Cash Flow
Free Cash Flow	1.83B	83.00M	2.70B	1.77B	3.86B	1.62B
Operating Cash Flow	2.17B	384.00M	2.97B	2.46B	4.54B	2.71B
Investing Cash Flow	-351.00M	-258.00M	-239.00M	-720.00M	-473.00M	-846.00M
Financing Cash Flow	-918.00M	-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: 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 4000 is below the 20-day moving average (MA) of 4004.75, above the 50-day MA of 3951.80, and above the 200-day MA of 3764.72, indicating a bullish trend. The MACD of 15.99 indicates Positive momentum. The RSI at 58.55 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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	77 Outperform	¥36.90B	13.95	―	2.55%	8.21%	20.27%
2602	67 Neutral	¥182.46B	7.62	12.56%	3.44%	3.80%	63.03%
2804	66 Neutral	¥24.17B	9.96	―	2.05%	0.99%	830.67%
2811	66 Neutral	¥235.27B	20.00	―	2.11%	3.69%	-50.13%
2613	65 Neutral	¥66.88B	12.94	―	3.77%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2819	62 Neutral	¥24.32B	18.40	―	1.87%	3.08%	-16.77%