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

• Market Cap: ¥18.72B
• Dividend Yield: 0.49%
• Average Volume (3M): 58.70K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.58
• Revenue Growth: 7.49%
• EPS Growth: 97.16%
• Country: JP
• Employees: 374
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Packaged Foods
• EPS (TTM): 789.99
• Shares Outstanding: 1,706,000
• 10 Day Avg. Volume: 61,350
• 30 Day Avg. Volume: 58,703
• 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: 77 Outperform
• Price Target: ¥14,700.00 ▲(21.29%Upside)

The most significant factor is the company's strong technical indicators, showing bullish market momentum. The stock's valuation is attractive with a low P/E ratio, suggesting potential undervaluation. While financial performance is solid, concerns about negative free cash flow must be monitored. Overall, the stock presents a favorable investment opportunity given the current data.

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
	EBIT
2.38B	2.06B	1.32B	526.19M	-42.96M
	EBITDA
3.09B	2.71B	2.09B	1.08B	677.61M
	Net Income Common Stockholders
1.72B	1.48B	1.04B	505.12M	62.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.65B	2.55B	2.34B	1.85B	1.85B
	Total Assets
40.17B	32.11B	29.38B	29.86B	29.79B
	Total Debt
13.11B	9.93B	9.61B	12.75B	12.75B
	Net Debt
9.46B	7.38B	7.27B	10.90B	10.91B
	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: 12120.00
• 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:2700, the sentiment is Neutral. The current price of 12120 is above the 20-day moving average (MA) of 12098.00, above the 50-day MA of 10020.40, and above the 200-day MA of 6853.22, indicating a neutral trend. The MACD of 629.22 indicates Positive momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 22.13 is Neutral, 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
2700	77 Outperform	¥18.72B	7.04		0.49%	7.49%	97.16%
2009	76 Outperform	¥21.74B	20.71		4.39%	-1.95%	13.15%
2932	75 Outperform	¥23.61B	14.57		4.02%	10.63%	-5.98%
2884	75 Outperform	¥24.21B	12.88		―	16.73%	80.15%
Sector *	65 Neutral	$8.81B	15.01	4.71%	3.72%	3.60%	-2.89%
2804	65 Neutral	¥23.74B	37.73		2.04%	0.93%	330.14%
2204	62 Neutral	¥18.60B	20.46		2.11%	-1.38%	120.33%