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Kitoku Shinryo Co., Ltd. (JP:2700)
:2700
Japanese Market

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

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JP

Kitoku Shinryo Co., Ltd.

(2700)

Rating:67Neutral
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. (2700) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionKitoku 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 MoneyKitoku 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
75
Positive
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
72
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue119.00B114.84B104.70B107.81B107.60B
Gross Profit9.03B8.07B6.88B5.97B5.21B
EBITDA3.09B2.71B2.09B1.08B677.61M
Net Income1.72B1.48B1.04B505.12M62.57M
Balance Sheet
Total Assets40.17B32.11B29.38B29.86B29.79B
Cash, Cash Equivalents and Short-Term Investments3.65B2.55B2.34B1.85B1.85B
Total Debt13.11B9.93B9.61B12.75B12.75B
Total Liabilities24.61B18.72B18.04B19.28B20.28B
Stockholders Equity15.00B13.02B11.02B10.33B9.39B
Cash Flow
Free Cash Flow-1.75B153.73M3.68B404.87M385.96M
Operating Cash Flow-929.89M464.86M4.34B774.12M704.93M
Investing Cash Flow-985.00M-421.88M-569.82M-574.09M-142.60M
Financing Cash Flow2.86B149.52M-3.29B-309.32M-1.28B

Kitoku Shinryo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2108.00
Price Trends
50DMA
2260.78
Negative
100DMA
1791.43
Positive
200DMA
1446.46
Positive
Market Momentum
MACD
-24.89
Positive
RSI
39.22
Neutral
STOCH
8.00
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥22.92B14.14
3.10%10.63%-5.98%
76
Outperform
¥21.06B20.06
4.55%-1.95%13.15%
76
Outperform
¥25.09B13.32
16.73%80.15%
67
Neutral
¥18.76B6.77
4.74%7.49%97.16%
66
Neutral
£10.18B12.883.35%3.43%-1.42%18.13%
65
Neutral
¥24.46B38.84
1.98%0.93%330.63%
62
Neutral
¥18.42B20.26
2.10%-1.38%120.33%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2700
Kitoku Shinryo Co., Ltd.
2,108.00
1,022.00
94.11%
JP:2009
Torigoe Co., Ltd.
905.00
236.15
35.31%
JP:2204
Nakamuraya Co., Ltd.
3,085.00
-110.69
-3.46%
JP:2804
Bull-Dog Sauce Co., Ltd.
1,828.00
-142.46
-7.23%
JP:2884
Yoshimura Food Holdings KK
1,038.00
-460.00
-30.71%
JP:2932
STI Foods Holdings, Inc.
1,307.00
-329.79
-20.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025