Kadoya Sesame Mills Incorporated (2612) AI Stock Analysis

• Market Cap: ¥46.92B
• Dividend Yield: 2.55%
• Average Volume (3M): 3.69K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.26
• 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: ¥5,712.00 ▲(42.80% 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

Very low leverage

An exceptionally conservative balance sheet with near-zero leverage provides durable financial flexibility. Low debt reduces refinancing and interest risks, supports capital allocation for working capital or M&A, and preserves resilience through industry cycles over the next 2–6 months.

Strong recent cash generation

Robust trailing‑12‑month operating and free cash flow, nearly matching reported earnings, indicates high earnings quality and internal funding capacity. This supports dividend continuity, reinvestment in the business, and reduces reliance on external financing in the medium term.

Solid core profitability

Consistent positive margins demonstrate a profitable core commodity/brand business across retail and wholesale channels. Sustained gross and operating margins imply structural cost coverage and pricing power in packaged sesame products, supporting stable earnings through modest demand shifts.

Negative Factors

Sharp TTM revenue decline

A pronounced trailing‑12‑month revenue decline signals reduced demand or volume loss that can erode operating leverage and long‑run growth prospects. Unless sales trends stabilize, profitability and cash conversion could be pressured despite strong balance sheet flexibility.

Margins trending below prior peaks

Margins have deteriorated from 2022 peaks, indicating margin compression from cost pressures, pricing, or mix shifts. Persistent lower margins would limit free cash flow upside and constrain reinvestment or payout growth even if balance sheet strength cushions risks.

Year-to-year cash flow volatility

While recent TTM cash flow is strong, historical volatility—including a weak FY2025—raises concern about predictability of cash available for capex and dividends. Inconsistent cash flows can complicate planning and raise the effective cost of funding for longer-term initiatives.

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 makes money primarily by manufacturing and selling sesame oil and other sesame-derived food products. Its revenue model is centered on product sales: (1) sales of branded consumer products through retail channels (e.g., supermarkets and other stores) and (2) sales to business customers for professional/industrial use (e.g., food-service and food manufacturers) via wholesale and direct distribution. Earnings are influenced by sales volumes and product mix across these channels, as well as procurement costs for sesame seeds and related inputs and the company’s ability to price its products to reflect changes in input and logistics costs. Specific information on major partnerships, customer concentration, or segment-level revenue breakdowns is null.

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: 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 4938.75, below the 50-day MA of 4417.80, and above the 200-day MA of 3922.38, indicating a bullish trend. The MACD of 207.05 indicates Positive momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 41.61 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	¥46.92B	10.79	―	2.55%	8.21%	20.27%
2809	71 Outperform	¥615.10B	19.60	9.28%	1.30%	5.50%	27.32%
2602	69 Neutral	¥189.27B	9.91	12.56%	3.44%	3.80%	63.03%
4404	69 Neutral	¥23.64B	2.45	―	2.54%	2.80%	154.89%
2613	65 Neutral	¥67.14B	20.57	―	3.77%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2607	57 Neutral	¥287.11B	10.01	―	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.