Kikkoman (2801) AI Stock Analysis

• Market Cap: ¥1.24T
• Dividend Yield: 1.72%
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.86
• Revenue Growth: 7.29%
• EPS Growth: 9.77%
• Country: JP
• Employees: 7,521
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 11.02
• Shares Outstanding: 969,416,000
• 10 Day Avg. Volume: 3,462,210
• 30 Day Avg. Volume: 3,098,516
• PEG Ratio: 2.36
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.53
• 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: ¥1,452.29
• Price Target Upside: 13.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: ―

Kikkoman shows strong financial performance with robust revenue and profit growth, effective cost management, and a stable balance sheet. Technical indicators suggest caution due to recent downward trends, despite some positive momentum signals. Valuation appears fair, with a reasonable P/E ratio and modest dividend yield. Overall, the company is well-positioned but should focus on managing debt and improving cash flows for sustained growth.

Positive Factors

Stock Rating

The analyst recommends upgrading Kikkoman to Market-Perform.

Negative Factors

Currency Impact

There is still scope for mid single digit stock price downside due to US$ depreciation and soft restaurant channel demand.

Earnings Performance

Kikkoman reported a weak Q3 with business profit down 7% year-over-year, coming in 5% below analyst estimates.

Economic Conditions

A US recession would be a clear incremental negative as 69% of the company’s earnings are generated in the country.

Kikkoman Business Overview & Revenue Model

Company Description

Kikkoman Corporation is a renowned Japanese company primarily engaged in the production and distribution of food products, particularly soy sauce, which is its flagship product. Established in 1917, Kikkoman operates in various sectors including food manufacturing, wholesale, and even biotechnology. The company is recognized globally for its soy sauce and other Asian-inspired food products, and it also manufactures and sells seasonings, sauces, and beverages.

How the Company Makes Money

Kikkoman makes money through several key revenue streams. Its primary source of income is the production and sales of soy sauce, which is distributed globally. This product line remains a staple for the company, contributing significantly to its revenue. Additionally, Kikkoman generates income from a diverse range of other food products, including seasonings, sauces, and beverages. The company also engages in the sale of food ingredients and health-related products, leveraging its expertise in fermentation technology. Kikkoman's business model is supported by strategic partnerships and distribution agreements that expand its market reach, particularly in international markets. These partnerships and a well-established global distribution network play a crucial role in the company's financial success.

Kikkoman Financial Statement Overview

Summary

Overall, Kikkoman exhibits a strong financial performance with consistent revenue and profit growth, effective cost management, and stable cash flows. The company is financially stable with a healthy balance sheet. Future focus should be on managing debt levels and improving cash flow to sustain long-term growth.

Income Statement

Kikkoman has demonstrated strong revenue growth over the years, with a significant increase from 2021 to 2025. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. The EBIT and EBITDA margins show robust operational efficiency. Consistent revenue and profit growth highlight a positive trend, though the sharp increase in total revenue may slow in future periods.

Balance Sheet

The company maintains a solid balance sheet with a strong equity position and a low debt-to-equity ratio, showcasing financial stability. The return on equity is commendable, indicating good returns for shareholders. The equity ratio further underscores the company's strong financial health. However, attention should be given to increasing total debt, which could pose future risks if not managed carefully.

Cash Flow

Kikkoman's cash flow is solid, with positive free cash flow and a strong operating cash flow to net income ratio, highlighting effective cash management. The free cash flow growth rate is stable, ensuring liquidity for investments and operations. However, the decline in operating cash flow from 2024 to 2025 suggests potential areas for improvement in cash flow management.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
701.48B	708.98B	660.84B	618.90B	516.44B	439.41B
	Gross Profit
239.39B	239.23B	219.01B	204.43B	178.83B	154.23B
	EBIT
76.08B	77.28B	73.40B	55.37B	50.68B	41.67B
	EBITDA
99.21B	112.26B	93.72B	80.13B	69.92B	62.34B
	Net Income Common Stockholders
62.25B	61.70B	56.44B	43.73B	38.90B	31.16B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
101.43B	106.18B	119.16B	103.86B	81.77B	61.28B
	Total Assets
693.67B	679.41B	667.88B	566.38B	503.06B	438.51B
	Total Debt
61.08B	59.01B	59.91B	50.98B	43.46B	41.66B
	Net Debt
-40.35B	-47.17B	-59.25B	-48.36B	-35.77B	-14.02B
	Total Liabilities
161.01B	163.36B	169.62B	149.42B	139.15B	124.99B
	Stockholders Equity
525.47B	508.54B	491.36B	410.51B	357.82B	308.13B
Cash Flow		Free Cash Flow
16.65B	34.49B	49.74B	32.65B	32.53B	40.10B
	Operating Cash Flow
27.06B	73.98B	80.81B	59.20B	52.09B	57.17B
	Investing Cash Flow
-11.51B	-38.46B	-42.99B	-26.62B	-16.11B	-16.89B
	Financing Cash Flow
-2.21B	-46.09B	-31.42B	-20.38B	-17.90B	-15.42B

Kikkoman Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1279.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2801, the sentiment is Negative. The current price of 1279 is below the 20-day moving average (MA) of 1324.15, below the 50-day MA of 1401.99, and below the 200-day MA of 1559.73, indicating a bearish trend. The MACD of -33.81 indicates Negative momentum. The RSI at 32.80 is Neutral, neither overbought nor oversold. The STOCH value of 33.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2801.

Kikkoman Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2801	74 Outperform	¥1.24T	19.68	12.17%	1.72%	7.29%	9.77%
2809	74 Outperform	€461.91B	16.40	9.19%	0.30%	5.92%	56.91%
Sector *	65 Neutral	$8.82B	14.91	4.71%	6.22%	3.60%	-2.66%
2804	65 Neutral	¥23.74B	37.73		2.04%	0.93%	330.14%
2819	64 Neutral	¥23.60B	17.68		1.97%	6.08%	-22.00%
2802	64 Neutral	$3.61T	51.66	8.89%	1.06%	6.35%	-114.08%
2811	61 Neutral	¥258.93B	16.44		1.96%	25.63%	-24.35%

Kikkoman Corporate Events

Kikkoman Executes Share Buyback Plan

Kikkoman Corporation has announced the acquisition of its own shares, executing this under the provisions of the Companies Act of Japan. During May 2025, the company acquired 241,600 shares through market transactions on the Tokyo Stock Exchange, amounting to a total acquisition price of 320,667,692 yen. This move is part of a larger plan to acquire up to 16 million shares by March 2026, which represents 1.70% of the shares outstanding as of March 2025. This strategic acquisition could potentially impact Kikkoman’s stock value and shareholder equity, reflecting the company’s confidence in its market position.

The most recent analyst rating on (JP:2801) stock is a Sell with a Yen1600.00 price target. To see the full list of analyst forecasts on Kikkoman stock, see the JP:2801 Stock Forecast page.

Kikkoman Ends Takeover Defense Policy Amid Market Challenges

Kikkoman Corporation has decided not to renew its takeover response policy, which was initially implemented to protect against abrupt and forceful large-scale purchases of its shares. This decision reflects the challenges in obtaining institutional investor consent for preemptive measures and aligns with recent judicial precedents. Despite the policy’s expiration, Kikkoman remains committed to ensuring shareholders have the necessary information and time to respond to any future large-scale purchase proposals that may threaten corporate value and shareholder interests.

Kikkoman Corporation to Acquire Own Shares to Enhance Financial Strategy

Kikkoman Corporation has announced a strategic decision to acquire up to 16 million of its own shares, representing 1.70% of its outstanding shares, as part of its financial strategy to adapt to changes in the business environment. This move, set to occur through market transactions on the Tokyo Stock Exchange, aims to enhance the company’s financial flexibility and potentially improve shareholder value.

Kikkoman Announces Change in Accounting Auditor

Kikkoman Corporation announced a change in its accounting auditor, with KPMG AZSA LLC set to replace Ernst & Young ShinNihon LLC following the expiration of the latter’s term. The change, effective after the 114th ordinary general meeting of shareholders, is aimed at bringing a fresh perspective to the audit process and is based on KPMG AZSA LLC’s expertise and global audit capabilities.

Kikkoman Announces Leadership Changes

Kikkoman Corporation has announced a series of changes in its board of directors and corporate officers, effective June 24, 2025, pending shareholder approval. These changes include the appointment of new directors and audit members, promotions within the corporate structure, and several resignations, indicating a strategic shift in leadership to potentially enhance its operational and market positioning.

Kikkoman Corporation Reports Strong Fiscal 2025 Financial Performance

Kikkoman Corporation reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with a 7.3% rise in revenue and a 10.8% increase in profit before income taxes. This growth reflects the company’s strong market positioning and effective business strategies, although total comprehensive income saw a notable decline. The results indicate a robust operational performance, with implications for continued shareholder value and market competitiveness.

Kikkoman Proposes Revisions to Director Compensation Plan

Kikkoman Corporation announced a proposal to continue and partially revise its stock compensation plan for directors and executive corporate officers, aiming to align their remuneration more closely with the company’s stock value. This move is designed to enhance medium- to long-term performance and corporate value, with changes including increased financial contributions and share allocations, pending approval at the upcoming shareholders’ meeting.

Kikkoman Announces Dividend Increase Amid Record Profits

Kikkoman Corporation announced a resolution to increase its year-end dividend to 15 yen per share, including a special dividend, due to achieving the highest profit for 12 consecutive years. This decision reflects Kikkoman’s commitment to rewarding shareholders while considering future business expansion and strengthening its corporate foundation.