Sanko Marketing Foods Co., Ltd. (2762) AI Stock Analysis

• Market Cap: ¥3.77B
• Dividend Yield: N/A
• Average Volume (3M): 140.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 3.76%
• EPS Growth: 3.77%
• Country: JP
• Employees: 237
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): -11.64
• Shares Outstanding: 38,862,950
• 10 Day Avg. Volume: 183,630
• 30 Day Avg. Volume: 140,916
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥96.00
• Price Target Upside: -1.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥96.00 ▼(-1.03% Downside)

The overall stock score is primarily influenced by financial performance challenges, including profitability and cash flow issues, which significantly impact the company's financial health. Technical analysis provides some positive momentum, but valuation concerns due to negative earnings and lack of dividends weigh on the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's products and effective market penetration, supporting long-term business expansion.

Product Innovation

Continued product innovation helps Sanko Marketing Foods adapt to changing consumer preferences, maintaining competitiveness and driving future growth.

Market Position

A diverse product portfolio and distribution network enhance market position, allowing the company to capture a broad customer base and mitigate risks.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder reinvestment in growth initiatives and affect long-term financial health, requiring strategic cost management.

Cash Flow Issues

Negative cash flows limit the company's ability to fund operations and growth internally, potentially increasing reliance on external financing.

Rising Leverage

Rising leverage increases financial risk and interest obligations, potentially constraining future investment capacity and operational flexibility.

Sanko Marketing Foods Co., Ltd. Business Overview & Revenue Model

Company Description

Sanko Marketing Foods Co., Ltd. (2762) is a Japanese company that operates primarily in the food industry. The company engages in the manufacturing, processing, and distribution of a wide variety of food products. Its core offerings include processed foods, such as ready-to-eat meals and snacks, as well as fresh produce and other grocery items. Sanko Marketing Foods is committed to providing high-quality, safe, and delicious food products to meet the diverse needs of its consumers.

How the Company Makes Money

Sanko Marketing Foods Co., Ltd. generates revenue through several key streams. The primary source of income is the sale of its processed and packaged food products, which are distributed through various retail and wholesale channels across Japan and potentially international markets. The company may also engage in direct sales to consumers via online platforms or company-owned retail outlets. Additionally, Sanko Marketing Foods could have partnerships with grocery chains, restaurants, or other food service businesses, contributing to its sales volume. The company’s earnings are further influenced by factors such as product innovation, brand strength, and its ability to adapt to changing consumer preferences and market trends.

Sanko Marketing Foods Co., Ltd. Financial Statement Overview

Summary

Sanko Marketing Foods Co., Ltd. is experiencing strong revenue growth but faces significant challenges in profitability and cash flow management. The increasing leverage and negative returns on equity highlight financial instability, posing risks to long-term sustainability. The company needs to address cost management and improve cash flow generation to enhance its financial health.

Income Statement

Sanko Marketing Foods Co., Ltd. has shown a significant revenue growth rate of 39.4% in the latest year, indicating strong top-line growth. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has decreased over the years, reflecting potential cost management issues.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, which has increased over the years, indicating rising leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses. The equity ratio is relatively low, suggesting limited financial stability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a concerning trend of declining free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is positive but reflects the company's reliance on non-operational cash inflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.64B	9.68B	9.33B	7.12B	2.41B	2.10B
Gross Profit	3.26B	3.29B	2.93B	2.29B	1.40B	1.47B
EBITDA	-613.25M	-698.00M	-607.00M	-728.00M	-315.00M	-1.81B
Net Income	-696.00M	-816.00M	-711.00M	-784.00M	-439.00M	-1.82B
Balance Sheet
Total Assets	2.80B	2.43B	2.38B	2.47B	2.31B	2.18B
Cash, Cash Equivalents and Short-Term Investments	584.00M	628.00M	454.00M	898.00M	978.00M	922.00M
Total Debt	587.00M	498.00M	459.00M	412.00M	219.00M	200.00M
Total Liabilities	2.39B	2.11B	2.06B	2.10B	1.75B	1.70B
Stockholders Equity	403.00M	317.00M	323.00M	374.00M	560.00M	488.00M
Cash Flow
Free Cash Flow	0.00	-640.00M	-1.11B	-922.00M	-274.00M	-1.90B
Operating Cash Flow	0.00	-585.00M	-880.00M	-769.00M	-134.00M	-1.78B
Investing Cash Flow	0.00	-52.00M	-286.00M	74.00M	-301.00M	1.06B
Financing Cash Flow	0.00	822.00M	698.00M	605.00M	490.00M	507.00M

Sanko Marketing Foods Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2762, the sentiment is Positive. The current price of 97 is above the 20-day moving average (MA) of 96.65, above the 50-day MA of 95.74, and below the 200-day MA of 101.92, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2762.

Sanko Marketing Foods Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3372	76 Outperform	¥3.45B	9.31		―	4.08%	37.93%
3317	71 Outperform	¥4.18B	11.37		1.04%	8.31%	15.92%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
3358	61 Neutral	¥3.36B	171.69		―	3.29%	-46.50%
3224	60 Neutral	¥3.34B	―		1.43%	-2.15%	72.23%
9969	58 Neutral	¥3.89B	―		1.98%	-2.75%	10.22%
2762	46 Neutral	¥3.77B	―		―	3.76%	3.77%