Kitoku Shinryo Co., Ltd. (2700) AI Stock Analysis

• Market Cap: ¥18.76B
• Dividend Yield: 4.74%
• Average Volume (3M): 215.64K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.58
• Revenue Growth: 7.49%
• EPS Growth: 97.16%
• Country: JP
• Employees: 374
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): 158.00
• Shares Outstanding: 8,530,000
• 10 Day Avg. Volume: 70,570
• 30 Day Avg. Volume: 215,640
• PEG Ratio: 0.06
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.89
• 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: 67 Neutral
• Price Target: ¥2,398.00 ▲(13.76%Upside)

The overall stock score is primarily influenced by strong valuation metrics, with a low P/E ratio and high dividend yield indicating potential undervaluation. Financial performance shows operational strength but is tempered by liquidity concerns due to negative free cash flow. Technical indicators suggest a neutral to bearish outlook, contributing to a moderate overall score.

Kitoku Shinryo Co., Ltd. Business Overview & Revenue Model

Company Description

Kitoku Shinryo Co., Ltd. is a Japanese company primarily engaged in the food industry, particularly focusing on the processing and distribution of rice and related products. The company operates in various sectors, including food production, logistics, and distribution, ensuring the supply of high-quality rice and rice-based products to consumers and businesses. Kitoku Shinryo is committed to maintaining the quality and safety of its food products while meeting the evolving demands of the market.

How the Company Makes Money

Kitoku Shinryo Co., Ltd. generates revenue through the sale of processed rice and rice-related products, which are distributed to both retail and wholesale markets. The company's revenue model is centered around its ability to source, process, and sell high-quality rice, leveraging its extensive distribution network to reach a wide array of customers. Additionally, Kitoku Shinryo may engage in strategic partnerships and collaborations with agricultural producers and food distributors to enhance its supply chain efficiency and market reach. The company's focus on quality assurance and customer satisfaction plays a crucial role in maintaining its competitive position in the food industry.

Kitoku Shinryo Co., Ltd. Financial Statement Overview

Summary

Kitoku Shinryo demonstrates solid revenue growth and improved profitability margins, reflecting operational strength. The balance sheet shows a healthy leverage position and equity usage. However, negative free cash flow signals potential cash flow concerns, which may impact future investment and growth opportunities.

Income Statement

Kitoku Shinryo has shown consistent revenue growth with a 3.63% increase from 2023 to 2024. The gross profit margin improved to 7.59%, indicating better cost management. Net profit margin stands at 1.45%, reflecting moderate profitability. EBIT and EBITDA margins have improved to 2.00% and 2.44% respectively, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.87, suggesting a balanced approach to leverage. Return on equity has improved to 11.49%, indicating efficient use of equity. The equity ratio is 37.34%, reflecting a solid capital structure with significant reliance on equity.

Cash Flow

Free cash flow has turned negative, showing a decline in liquidity. The operating cash flow to net income ratio is negative, highlighting potential cash flow challenges. Although there was previous free cash flow growth, the current decline poses risks to financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.00B	114.84B	104.70B	107.81B	107.60B
Gross Profit	9.03B	8.07B	6.88B	5.97B	5.21B
EBITDA	3.09B	2.71B	2.09B	1.08B	677.61M
Net Income	1.72B	1.48B	1.04B	505.12M	62.57M
Balance Sheet
Total Assets	40.17B	32.11B	29.38B	29.86B	29.79B
Cash, Cash Equivalents and Short-Term Investments	3.65B	2.55B	2.34B	1.85B	1.85B
Total Debt	13.11B	9.93B	9.61B	12.75B	12.75B
Total Liabilities	24.61B	18.72B	18.04B	19.28B	20.28B
Stockholders Equity	15.00B	13.02B	11.02B	10.33B	9.39B
Cash Flow
Free Cash Flow	-1.75B	153.73M	3.68B	404.87M	385.96M
Operating Cash Flow	-929.89M	464.86M	4.34B	774.12M	704.93M
Investing Cash Flow	-985.00M	-421.88M	-569.82M	-574.09M	-142.60M
Financing Cash Flow	2.86B	149.52M	-3.29B	-309.32M	-1.28B

Kitoku Shinryo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2108.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2700, the sentiment is Neutral. The current price of 2108 is below the 20-day moving average (MA) of 2396.41, below the 50-day MA of 2260.78, and above the 200-day MA of 1446.46, indicating a neutral trend. The MACD of -24.89 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 8.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2700.

Kitoku Shinryo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2932	78 Outperform	¥22.92B	14.14		3.10%	10.63%	-5.98%
2009	76 Outperform	¥21.06B	20.06		4.55%	-1.95%	13.15%
2884	76 Outperform	¥25.09B	13.32		―	16.73%	80.15%
2700	67 Neutral	¥18.76B	6.77		4.74%	7.49%	97.16%
Sector *	66 Neutral	£10.18B	12.88	3.35%	3.43%	-1.42%	18.13%
2804	65 Neutral	¥24.46B	38.84		1.98%	0.93%	330.63%
2204	62 Neutral	¥18.42B	20.26		2.10%	-1.38%	120.33%