S&B Foods Inc. (2805) AI Stock Analysis

• Market Cap: ¥120.21B
• Dividend Yield: 1.08%
• Average Volume (3M): 20.96K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.25
• Revenue Growth: 0.48%
• EPS Growth: -4.27%
• Country: JP
• Employees: 2,138
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 146.93
• Shares Outstanding: 27,244,469
• 10 Day Avg. Volume: 20,240
• 30 Day Avg. Volume: 20,963
• PEG Ratio: 0.68
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 11.46
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 314.4
• Revenue Forecast (FY): ¥127.50B

• Rating: 73 Outperform
• Price Target: ¥4,973.00 ▲(23.40% Upside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is driven primarily by solid financial performance (profitability and improving cash generation with manageable leverage) and reasonable valuation (P/E ~12.8). Technicals are supportive due to a strong uptrend, but very elevated RSI/Stoch readings reduce the score due to near-term overheating risk.

Positive Factors

Improving Profitability and Margins

Rising EBIT and net profit margins reflect sustained operational efficiency gains. Durable margin expansion increases free cash flow potential, funds reinvestment, and buffers against cost inflation, supporting earnings resilience over the next 2–6 months.

Strengthening Cash Generation

Improving free cash flow and efficient operating cash conversion indicate stronger internal funding for capex, debt servicing, and shareholder returns. Consistent cash generation enhances financial flexibility and supports strategic initiatives over the medium term.

Solid Balance Sheet and Deleveraging

A strong equity base and improving debt-to-equity ratio reduce refinancing and solvency risk. Manageable leverage provides capacity for selective M&A or investment and increases resilience to macro shocks, a durable advantage for 2–6 month planning horizons.

Negative Factors

Recent Revenue Dip

A recent decline in revenue, though described as slight, could signal softening demand or execution issues. If persistent, it may erode operating leverage and limit margin improvements, making revenue stabilization critical for medium-term growth prospects.

Significant Total Liabilities

Material total liabilities increase downside risk from interest or liquidity stress. Even with improving debt ratios, elevated obligations can constrain capital allocation and raise refinancing exposure, reducing strategic flexibility over the coming months.

Variable Investing Cash Flow

Inconsistent investing cash flow creates uncertainty about the sustainability of free cash flow and the timing of growth investments. Variable capex or acquisitions can lead to uneven returns, complicating planning and cash management over a 2–6 month horizon.

S&B Foods Inc. Business Overview & Revenue Model

Company Description

S&B Foods Inc. engages in the manufacture and sale of curry, pepper, garlic, and other powdered spices in Japan. It also offers spice paste in tube, seasoning, curry sauce mix, stew sauce mix, retort pouch food, refrigerated food, fresh herbs, herb related products, and other food products. The company was founded in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

S&B Foods generates revenue primarily through the sale of its products, including sauces, seasonings, and ready-to-eat meals, to retail supermarkets, restaurants, and food service providers. The company benefits from multiple revenue streams, including domestic and international sales, with a significant portion of its earnings derived from export markets. Additionally, S&B Foods often engages in partnerships with food distributors and retailers to expand its market reach and product availability. The company also invests in marketing and promotional campaigns to enhance brand visibility and drive consumer demand, further contributing to its overall earnings.

S&B Foods Inc. Financial Statement Overview

Summary

Financials are solid: strong profitability and improving efficiency (higher EBIT margin), a healthy equity base with improving debt-to-equity, and better free cash flow generation. Key watchouts are the slight latest-year revenue dip, significant total liabilities, and variability in investing cash flow.

Income Statement

S&B Foods Inc. demonstrates a strong financial position with consistent revenue and profit growth. The gross profit margin remains stable, although there was a slight decrease in revenue in the latest year. The net profit margin has improved due to increased efficiencies in operations, as evidenced by a rising EBIT margin. The company also maintains a healthy EBITDA margin, indicating solid operational performance.

Balance Sheet

The balance sheet of S&B Foods Inc. is solid with a strong equity base. The debt-to-equity ratio has improved over the years, showcasing effective debt management. Return on equity has been stable, providing a good return to shareholders. However, the total liabilities remain significant, which could pose a potential risk if not managed properly.

Cash Flow

S&B Foods Inc. has shown improvement in free cash flow, indicating better cash generation capabilities. Operating cash flow to net income ratio signifies efficient cash conversion. Although the free cash flow to net income ratio is positive, the variability in investing cash flow should be monitored to ensure sustainable cash flow growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	124.57B	123.52B	126.44B	120.65B	118.05B	114.25B
Gross Profit	33.28B	33.37B	31.74B	29.21B	31.91B	32.41B
EBITDA	13.21B	13.74B	12.82B	10.06B	13.73B	14.45B
Net Income	7.04B	7.57B	6.72B	4.08B	6.22B	6.65B
Balance Sheet
Total Assets	146.74B	137.09B	140.23B	130.46B	128.98B	125.41B
Cash, Cash Equivalents and Short-Term Investments	24.59B	19.47B	22.08B	20.79B	25.25B	26.59B
Total Debt	23.75B	20.30B	28.09B	31.72B	33.69B	34.58B
Total Liabilities	62.04B	56.82B	67.54B	67.54B	69.08B	70.27B
Stockholders Equity	84.70B	80.27B	72.69B	62.92B	59.90B	55.14B
Cash Flow
Free Cash Flow	0.00	5.62B	2.54B	2.87B	4.42B	405.00M
Operating Cash Flow	0.00	8.50B	4.62B	8.17B	8.17B	12.16B
Investing Cash Flow	0.00	-2.30B	843.00M	-5.74B	-5.74B	-11.21B
Financing Cash Flow	0.00	-8.76B	-4.42B	-2.90B	-2.90B	3.11B

S&B Foods Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4030.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2805, the sentiment is Positive. The current price of 4030 is below the 20-day moving average (MA) of 4415.00, below the 50-day MA of 4226.50, and above the 200-day MA of 3479.20, indicating a bullish trend. The MACD of 65.92 indicates Positive momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 79.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2805.

S&B Foods Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2810	74 Outperform	¥300.83B	23.75	4.19%	1.66%	0.74%	5.88%
2805	73 Outperform	¥120.21B	14.22	―	1.08%	0.48%	-4.27%
2801	72 Outperform	¥1.45T	23.64	11.19%	1.46%	2.65%	-5.76%
2809	71 Outperform	¥622.46B	20.30	9.28%	1.30%	5.50%	27.32%
2897	66 Neutral	¥972.12B	18.92	9.77%	2.41%	1.46%	-2.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2802	61 Neutral	¥4.83T	62.42	9.46%	1.32%	1.99%	-18.79%