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

• Market Cap: ¥44.00B
• Dividend Yield: 0.68%
• Average Volume (3M): 269.71K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.84
• Revenue Growth: 22.72%
• EPS Growth: 243.12%
• Country: JP
• Employees: 374
• Sector: Consumer Defensive
• Sector Strength: 50
• Industry: Packaged Foods
• EPS (TTM): 295.37
• Shares Outstanding: 8,530,000
• 10 Day Avg. Volume: 602,750
• 30 Day Avg. Volume: 269,713
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,818.00
• Price Target Upside: -44.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥2,818.00 ▼(-44.64% Downside)

The overall stock score is driven primarily by strong technical analysis and attractive valuation. The positive market momentum and undervalued stock position are significant strengths. However, concerns over negative free cash flow and potential liquidity issues slightly reduce the score.

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

Company Description

Kitoku Shinryo Co., Ltd. is a Japanese company primarily engaged in the processing and sale of rice and related products. The company operates in the food industry and offers a range of products including polished rice, processed rice products, and rice-based food items. With a focus on quality and innovation, Kitoku Shinryo caters to both domestic and international markets, serving a diverse clientele that includes retailers, food service companies, and consumers.

How the Company Makes Money

Kitoku Shinryo Co., Ltd. generates revenue through the sale of its rice and rice-based products. The company procures raw rice, processes it into various forms, and sells these products to multiple customer segments. Key revenue streams include wholesale distribution to supermarkets and retailers, as well as direct sales to food service companies and other institutional clients. The company may also engage in strategic partnerships to expand its market reach and enhance its product offerings. Additionally, Kitoku Shinryo might leverage its expertise in rice processing to explore value-added products, further contributing to its earnings.

Kitoku Shinryo Co., Ltd. Financial Statement Overview

Summary

Kitoku Shinryo shows solid revenue growth and improved profitability margins, indicating operational strength. The balance sheet is healthy with good leverage and equity usage. However, negative free cash flow highlights potential liquidity concerns, affecting financial flexibility.

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: Positive
• Last Price: 5090.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 5090 is above the 20-day moving average (MA) of 3933.45, above the 50-day MA of 2921.33, and above the 200-day MA of 1811.01, indicating a bullish trend. The MACD of 857.86 indicates Negative momentum. The RSI at 63.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	¥44.00B	10.43		0.68%	22.72%	243.12%
2932	78 Outperform	¥23.38B	10.78		3.59%	10.81%	15.42%
2009	72 Outperform	¥22.67B	20.30		4.28%	-1.10%	19.88%
2804	71 Outperform	¥29.31B	12.27		1.60%	1.31%	10549.54%
2884	69 Neutral	¥21.60B	13.99		―	10.00%	21.02%
2204	66 Neutral	¥18.60B	22.38		2.09%	-1.76%	20.32%
Sector *	63 Neutral	$20.46B	14.51	-3.60%	3.15%	2.60%	-5.31%