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

• Market Cap: ¥37.28B
• Dividend Yield: 0.83%
• Average Volume (3M): 91.39K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.84
• Revenue Growth: 38.11%
• EPS Growth: 300.47%
• Country: JP
• Employees: 374
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 215.28
• Shares Outstanding: 8,530,000
• 10 Day Avg. Volume: 48,440
• 30 Day Avg. Volume: 91,386
• PEG Ratio: 0.06
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.02
• P/FCF Ratio: -1.04
• 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: 67 Neutral
• Price Target: ¥4,579.00 ▲(8.51% Upside)

Kitoku Shinryo's stock score is primarily driven by its strong valuation, with a low P/E ratio indicating potential undervaluation. Financial performance is solid, but concerns about negative free cash flow could impact future growth. Technical analysis suggests a bearish trend, which may pose short-term risks.

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

Company Description

Kitoku Shinryo Co., Ltd. (2700) is a prominent Japanese company specializing in the import and sale of food ingredients, particularly focusing on the distribution of high-quality seasonings, sauces, and various food additives. The company operates primarily within the food and beverage sector, catering to a diverse clientele that includes restaurants, food manufacturers, and retail businesses. Kitoku Shinryo is known for its commitment to quality and innovation, providing products that meet the evolving demands of the culinary industry.

How the Company Makes Money

Kitoku Shinryo generates revenue primarily through the sale of food ingredients and seasonings to various sectors, including food service, manufacturing, and retail. The company's revenue model is based on direct sales to customers, where they leverage relationships with both suppliers and clients to ensure a steady supply of high-quality products. Key revenue streams include bulk sales of specialty seasonings, custom food solutions for manufacturers, and retail distribution of packaged products. Additionally, strategic partnerships with food producers and distributors enhance their market reach and contribute to consistent earnings, while participation in food expos and trade shows helps in acquiring new clients and expanding their customer base.

Kitoku Shinryo Co., Ltd. Financial Statement Overview

Summary

Kitoku Shinryo shows solid revenue growth and improved profitability margins, indicating operational strength. The balance sheet reflects healthy leverage 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.82B	119.00B	114.84B	104.70B	107.81B	107.60B
Gross Profit	13.54B	9.03B	8.07B	6.88B	5.97B	5.21B
EBITDA	7.32B	3.09B	2.71B	2.09B	1.08B	677.61M
Net Income	4.60B	1.72B	1.48B	1.04B	505.12M	62.57M
Balance Sheet
Total Assets	47.09B	40.17B	32.11B	29.38B	29.86B	29.79B
Cash, Cash Equivalents and Short-Term Investments	5.95B	3.65B	2.55B	2.34B	1.85B	1.85B
Total Debt	14.92B	13.11B	9.93B	9.61B	12.75B	12.75B
Total Liabilities	28.26B	24.61B	18.72B	18.04B	19.28B	20.28B
Stockholders Equity	18.31B	15.00B	13.02B	11.02B	10.33B	9.39B
Cash Flow
Free Cash Flow	0.00	-1.73B	153.73M	3.68B	404.87M	385.96M
Operating Cash Flow	0.00	-929.89M	464.86M	4.34B	774.12M	704.93M
Investing Cash Flow	0.00	-985.00M	-421.88M	-569.82M	-574.09M	-142.60M
Financing Cash Flow	0.00	2.86B	149.52M	-3.29B	-309.32M	-1.28B

Kitoku Shinryo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4220.00
• 50DMA: Negative
• 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 Negative. The current price of 4220 is below the 20-day moving average (MA) of 4346.25, below the 50-day MA of 4829.30, and above the 200-day MA of 2723.61, indicating a neutral trend. The MACD of -27.13 indicates Negative momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2009	79 Outperform	¥25.93B	23.12	―	3.69%	-1.10%	19.88%
2932	78 Outperform	¥22.99B	10.56	―	3.57%	10.81%	15.42%
2884	73 Outperform	¥15.82B	10.07	―	―	3.07%	50.05%
2700	67 Neutral	¥37.28B	7.84	―	0.83%	38.11%	300.47%
2204	67 Neutral	¥18.06B	21.46	―	2.15%	-1.76%	20.32%
2804	66 Neutral	¥25.66B	9.94	―	1.88%	0.99%	830.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%