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Kikkoman Corporation (JP:2801)
:2801

Kikkoman (2801) AI Stock Analysis

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JP

Kikkoman

(OTC:2801)

Rating:74Outperform
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
Analyst Recommendation
The analyst recommends upgrading Kikkoman to Market-Perform.
Negative Factors
Earnings
Kikkoman reported a weak Q3 with business profit down 7% year-over-year, coming in 5% below analyst estimates.
Financial Performance
US Wholesale revenue growth slowed sequentially, with business profit down 5.3% year-over-year as the margin contracted again.

Kikkoman (2801) vs. iShares MSCI Japan ETF (EWJ)

Kikkoman Business Overview & Revenue Model

Company DescriptionKikkoman Corporation, through its subsidiaries, manufactures and sells food products in Japan, North America, and internationally. The company offers soy sauces, soy sauce soup bases, dipping and marinade sauces, handy seasoning mixes, and Del Monte seasonings; soy milk and Del Monte beverages; sweet sake for cooking; and wines. It also manufactures and sells canned fruits, canned corn, and tomato ketchup, as well as health foods; and purchases and sells oriental food products. In addition, the company produces and sells clinical diagnostic reagents, hygiene inspection agents, and processing enzymes, as well as chemical products, including hyaluronic acid; and offers real estate rental, logistics, and back-office support services. It serves home, and industrial and food service sectors. The company was formerly known as Kikkoman Shoyu Co., Ltd. and changed its name to Kikkoman Corporation in 1980. Kikkoman Corporation was founded in 1917 and is headquartered in Noda, Japan.
How the Company Makes MoneyKikkoman 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
701.48B708.98B660.84B618.90B516.44B439.41B
Gross Profit
239.39B239.23B219.01B204.43B178.83B154.23B
EBIT
76.08B77.28B73.40B55.37B50.68B41.67B
EBITDA
99.21B112.26B93.72B80.13B69.92B62.34B
Net Income Common Stockholders
62.25B61.70B56.44B43.73B38.90B31.16B
Balance SheetCash, Cash Equivalents and Short-Term Investments
101.43B106.18B119.16B103.86B81.77B61.28B
Total Assets
693.67B679.41B667.88B566.38B503.06B438.51B
Total Debt
61.08B59.01B59.91B50.98B43.46B41.66B
Net Debt
-40.35B-47.17B-59.25B-48.36B-35.77B-14.02B
Total Liabilities
161.01B163.36B169.62B149.42B139.15B124.99B
Stockholders Equity
525.47B508.54B491.36B410.51B357.82B308.13B
Cash FlowFree Cash Flow
16.65B34.49B49.74B32.65B32.53B40.10B
Operating Cash Flow
27.06B73.98B80.81B59.20B52.09B57.17B
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 Price1304.00
Price Trends
50DMA
1407.46
Negative
100DMA
1455.27
Negative
200DMA
1563.84
Negative
Market Momentum
MACD
-35.82
Negative
RSI
37.18
Neutral
STOCH
38.42
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 1304 is below the 20-day moving average (MA) of 1335.67, below the 50-day MA of 1407.46, and below the 200-day MA of 1563.84, indicating a bearish trend. The MACD of -35.82 indicates Negative momentum. The RSI at 37.18 is Neutral, neither overbought nor oversold. The STOCH value of 38.42 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.26T20.1012.17%1.68%7.29%9.77%
65
Neutral
$8.92B15.034.68%6.11%3.59%-2.49%
$25.25B55.038.89%1.06%
DEQPJ
€2.81B15.899.19%1.96%
68
Neutral
¥261.77B16.62
1.94%25.63%-24.35%
68
Neutral
¥23.43B37.24
2.06%0.93%330.14%
64
Neutral
¥23.96B17.96
1.94%6.08%-22.00%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2801
Kikkoman
1,304.00
-515.18
-28.32%
AJINF
Ajinomoto Co
25.14
6.96
38.28%
DE:QPJ
Kewpie Corporation
19.60
2.04
11.62%
JP:2804
Bull-Dog Sauce Co., Ltd.
1,749.00
-162.64
-8.51%
JP:2811
Kagome Co., Ltd.
2,961.00
-611.47
-17.12%
JP:2819
Ebara Foods Industry, Inc.
2,560.00
-299.98
-10.49%

Kikkoman Corporate Events

Kikkoman Executes Share Buyback Plan
Jun 3, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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.

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.