Kadoya Sesame Mills Incorporated (2612) AI Stock Analysis

• Market Cap: ¥35.93B
• Dividend Yield: 2.56%
• Average Volume (3M): 3.69K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.18
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥4,421.00 ▲(13.21% 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 (2612) is a leading manufacturer and distributor of sesame-based products, operating primarily in the food processing sector. The company specializes in producing sesame oil, sesame seeds, and other related products, catering to both domestic and international markets. Kadoya's commitment to quality and traditional production methods has established it as a trusted brand among consumers and businesses alike, particularly in Asian cuisines where sesame is a vital ingredient.

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 Incorporated demonstrates consistent revenue growth and maintains stable gross profit margins, reflecting efficient cost management. The balance sheet is strong with minimal leverage, and cash flow generation has improved, though there is room for enhancing cash flow efficiency.

Income Statement

Kadoya Sesame Mills Incorporated shows a consistent revenue growth trend with a TTM revenue growth rate of 2.45%. The gross profit margin remains stable around 25.7%, indicating efficient cost management. However, the net profit margin has slightly decreased over time, currently at 5.97%, which suggests some pressure on profitability. Overall, the company maintains solid EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The company exhibits a strong balance sheet with a very low debt-to-equity ratio of 0.0018, indicating minimal leverage and financial risk. The return on equity (ROE) is stable at around 6.76%, showing effective use of equity to generate profits. The equity ratio is robust, suggesting a strong capital structure with significant equity backing the assets.

Cash Flow

Kadoya Sesame Mills has demonstrated significant free cash flow growth in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is relatively low at 0.064, suggesting potential room for improvement in cash flow efficiency. However, the free cash flow to net income ratio is healthy, indicating good cash conversion from profits.

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: 3905.00
• 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 3905 is above the 20-day moving average (MA) of 3899.25, above the 50-day MA of 3844.80, and above the 200-day MA of 3712.24, indicating a bullish trend. The MACD of 18.74 indicates Positive momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 72.86 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	¥35.93B	13.62	―	2.56%	8.21%	20.27%
2602	67 Neutral	¥169.50B	7.09	12.56%	3.44%	3.80%	63.03%
2804	66 Neutral	¥23.68B	9.63	―	2.07%	0.99%	830.67%
2811	66 Neutral	¥230.62B	19.82	―	2.11%	3.69%	-50.13%
2613	65 Neutral	¥65.06B	12.69	―	3.79%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2819	62 Neutral	¥23.38B	17.71	―	1.87%	3.08%	-16.77%

Kadoya Sesame Mills Incorporated Corporate Events

Kadoya Sesame Mills Reports Strong Q1 Sales Growth

Kadoya Sesame Mills Incorporated reported a 10% increase in net sales for the first quarter of fiscal year 2026, reaching 10,566 million yen. Operating profit also rose by 13.9% to 1,267 million yen, although ordinary profit and profit attributable to owners of the parent saw slight declines. The company’s capital adequacy ratio remains strong at 81.4%, indicating robust financial health. These results highlight Kadoya’s steady market presence and operational efficiency, despite minor setbacks in ordinary profit.