Kewpie Corporation (2809) AI Stock Analysis

• Market Cap: ¥602.59B
• Dividend Yield: 1.3%
• Average Volume (3M): 482.67K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.38
• Revenue Growth: 5.50%
• EPS Growth: 27.32%
• Country: JP
• Employees: 10,517
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 32.73
• Shares Outstanding: 141,500,000
• 10 Day Avg. Volume: 395,940
• 30 Day Avg. Volume: 482,670
• PEG Ratio: 0.45
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 36.89
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥4,777.00 ▲(10.43% Upside)

The score is driven primarily by improving profitability and a very low-leverage balance sheet, which support financial resilience. This is partially offset by uneven cash-flow conversion in 2025 and only modest technical momentum, while valuation (P/E ~18.8 and ~1.33% yield) looks reasonable but not a major catalyst.

Positive Factors

Conservative balance sheet / low leverage

Very low leverage and steadily de-risked balance sheet give the company durable financial flexibility. This supports capital spending, M&A optionality, and dividend stability through cycles, reducing insolvency risk and strengthening resilience to macro shocks.

Improving profitability margins

Sustained improvement in operating and net margins indicates better cost control, pricing or mix gains. If maintained, higher margins improve cash generation and ROE, enabling reinvestment and shareholder returns without reliance on leverage.

Diversified consumer and B2B revenue streams

A staple consumer brand plus a sizeable B2B channel and international expansion create durable, diversified demand. This mix smooths revenue cycles, aids scale in ingredients and supply chains, and supports long-term growth through channel and geographic breadth.

Negative Factors

Uneven cash-flow conversion

Large swings in cash conversion suggest working-capital stress or timing mismatches. Persistent weak OCF vs. earnings constrains organic investment, dividends, and resilience to shocks; it raises execution risk if cash conversion doesn't stabilize.

Gross-margin volatility / input-cost sensitivity

Volatile gross margins reflect exposure to commodity and input-price swings and limited immediate passthrough. Structurally, this can compress margins in sustained inflation or when pricing power is weak, pressuring earnings durability and cash flow.

Profitability needs durability to sustain returns

ROE and margins have improved but remain modest; sustaining higher returns depends on maintaining margin gains. If margin improvement proves cyclic or reversible, the company may struggle to raise returns or fund growth absent higher leverage or structural gains.

Kewpie Corporation Business Overview & Revenue Model

Company Description

Kewpie Corporation, through its subsidiaries, engages in the manufacturing, wholesaling, transporting, and warehousing of food products in Japan and internationally. It offers condiments, including mayonnaise and dressings, and vinegar; egg products, such as liquid eggs, frozen eggs, dried eggs, egg spreads, and thick omelets; and delicatessen products comprising salads and delicatessen foods, and packaged salads. The company also provides processed foods consisting of bottled and/or canned foods, such as jams, fruit, pasta sauces, baby foods, and nursing care foods; and fine chemical products, including hyaluronic acid and others. In addition, it produces and sells fresh vegetables, dried meat, and machinery and equipment; provides consigned clerical work; engages in transportation and warehousing of food products, and sells equipment for cars, as well as is involved in the mail-order business. Further, the company offers advertising, publicity, and exhibitions services, as well as financial and business management services. The company was founded in 1919 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kewpie Corporation generates revenue through multiple key streams. The primary source of income is from the sale of its flagship mayonnaise and related condiments, which are sold in supermarkets, convenience stores, and food service establishments. Additionally, the company has a substantial business-to-business segment, supplying food products and ingredients to restaurants, catering services, and food manufacturers. Kewpie's revenue is further bolstered by global expansion efforts, with the company exporting its products to various international markets. Strategic partnerships with retailers and food service companies enhance distribution and brand visibility. Furthermore, Kewpie invests in innovation and product development, creating new offerings that cater to changing consumer preferences, thereby driving additional sales.

Kewpie Corporation Financial Statement Overview

Summary

Profitability has improved meaningfully (net margin up to ~5.9% and EBIT margin up to ~9.3% by 2025) with steady recent revenue growth, and the balance sheet is very conservative with sharply reduced leverage. The main offset is uneven cash-flow quality, including weaker 2025 cash conversion versus earnings, which tempers confidence in the durability of recent gains.

Income Statement

Profitability has improved meaningfully over the last few years: net margin rose from ~2.2% (2020) to ~5.9% (2025), and operating profitability also strengthened (EBIT margin ~4.4% to ~9.3%). Revenue has been growing steadily in recent years (roughly mid‑single-digit growth in 2022–2024, and modest growth in 2025), supporting earnings momentum. Offsetting this, gross margin has been somewhat volatile (down in 2023, improved in 2024, slightly lower in 2025), suggesting input-cost/price-mix sensitivity typical for packaged foods.

Balance Sheet

The balance sheet looks very conservative and has steadily de-risked: total debt fell sharply from 2020 to 2025, driving debt relative to equity down from ~0.33x to ~0.03x. Equity has grown alongside assets, and returns to shareholders have improved (return on equity rising to ~9.4% in 2025 from mid‑single digits in 2022–2023). The main watch item is that profitability—while improving—still needs to remain durable to sustain higher returns without relying on leverage.

Cash Flow

Cash generation is positive but uneven. Free cash flow rebounded strongly in 2024 and remained solid in 2025, but it has been volatile over the period (notably weak in 2022–2023). A key concern is that 2025 operating cash flow is relatively low versus reported earnings (operating cash flow is about 30% of net income, down from ~69% in 2024), which may point to working-capital pressure or timing effects. Despite that, free cash flow still covered roughly half of net income in 2025, indicating earnings quality is acceptable but not consistently strong.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	506.50B	513.42B	483.99B	455.09B	430.30B	407.04B
Gross Profit	148.69B	150.93B	147.77B	122.33B	124.19B	124.23B
EBITDA	61.03B	66.08B	51.65B	39.59B	41.68B	44.63B
Net Income	27.72B	30.51B	21.42B	13.17B	16.03B	18.01B
Balance Sheet
Total Assets	468.92B	480.53B	462.37B	426.01B	403.38B	381.00B
Cash, Cash Equivalents and Short-Term Investments	79.89B	80.60B	88.14B	68.61B	67.83B	68.34B
Total Debt	6.90B	10.79B	21.56B	31.79B	32.47B	41.73B
Total Liabilities	130.07B	132.93B	130.74B	114.70B	108.76B	111.70B
Stockholders Equity	309.78B	324.06B	302.29B	281.88B	267.66B	245.64B
Cash Flow
Free Cash Flow	0.00	16.21B	39.20B	6.28B	10.39B	26.95B
Operating Cash Flow	0.00	31.80B	63.13B	23.73B	27.20B	38.53B
Investing Cash Flow	0.00	-16.91B	-23.89B	-17.72B	-15.95B	-20.28B
Financing Cash Flow	0.00	-30.10B	-21.13B	-9.51B	-16.81B	-18.70B

Kewpie Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4326.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2809, the sentiment is Positive. The current price of 4326 is above the 20-day moving average (MA) of 4311.10, above the 50-day MA of 4316.39, and above the 200-day MA of 3925.02, indicating a bullish trend. The MACD of 12.60 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2809.

Kewpie Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2871	72 Outperform	¥484.68B	18.52	9.86%	2.58%	1.08%	2.71%
2809	71 Outperform	¥602.59B	19.65	9.28%	1.30%	5.50%	27.32%
2282	70 Outperform	¥685.60B	21.67	6.04%	2.04%	5.55%	27.03%
2002	70 Outperform	¥557.18B	20.98	―	3.15%	-0.88%	-25.64%
2229	69 Neutral	¥389.43B	22.13	8.27%	1.95%	5.82%	-13.40%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2206	59 Neutral	¥358.93B	49.16	2.66%	1.64%	8.40%	-23.50%

Kewpie Corporation Corporate Events

Kewpie Launches New ¥10 Billion Share Buyback to Boost Shareholder Returns

Kewpie Corporation’s board has approved a new share buyback of up to ¥10 billion, authorizing the market purchase of up to 4 million shares, or about 2.87% of its outstanding stock, on the Tokyo Stock Exchange between January 15 and November 30, 2026. The repurchase forms part of the company’s FY2025–FY2028 medium-term plan to deliver robust shareholder returns—targeting a minimum annual dividend of ¥54 per share and a total return ratio of at least 50% over four years—and follows an earlier buyback program decided in July 2025, underscoring management’s emphasis on agile capital policy, improved capital efficiency, and strengthened financial foundations.

The most recent analyst rating on (JP:2809) stock is a Buy with a Yen4742.00 price target. To see the full list of analyst forecasts on Kewpie Corporation stock, see the JP:2809 Stock Forecast page.

Kewpie Delivers Third Year of Record Profits and Targets Further Earnings Growth in FY2026

Kewpie Corporation reported a third consecutive year of record operating income, reaching ¥34.6 billion in FY2025 despite a tougher-than-expected cost environment, supported by swift price revisions in Japan and reinforced supply systems in the Americas and Asia-Pacific that delivered double-digit overseas growth. Looking ahead to FY2026, the company projects operating income of ¥38.0 billion as it pursues higher value-added core products and labor-saving offerings in Japan, accelerates profit-focused expansion in overseas markets, and continues enhancing capital efficiency through additional share buybacks and higher dividends to advance toward its medium-term ROE targets.

The most recent analyst rating on (JP:2809) stock is a Buy with a Yen4742.00 price target. To see the full list of analyst forecasts on Kewpie Corporation stock, see the JP:2809 Stock Forecast page.

Kewpie Releases Detailed Supplementary Data for FY2025 Results

Kewpie Corporation released supplementary data for its fiscal year ended November 30, 2025, detailing segment-based net sales and operating income, changes in operating profit drivers, and domestic sales trends for salad condiments. The materials also cover exchange rate impacts on overseas results, shifts in major raw material prices, capital investments, and key selling, general and administrative expenses, alongside summaries of non-operating items, balance sheet movements, and cash flows; additionally, the company outlined its sustainability and human capital targets and performance, as well as changes in principal management indicators and a new method for allocating corporate expenses to better reflect each segment’s true profitability.

The most recent analyst rating on (JP:2809) stock is a Buy with a Yen4742.00 price target. To see the full list of analyst forecasts on Kewpie Corporation stock, see the JP:2809 Stock Forecast page.

Kewpie Delivers Higher Sales and Profit, Lifts Dividend on Solid FY2025 Results

Kewpie Corporation reported consolidated net sales of ¥513.4 billion for the fiscal year ended November 30, 2025, up 6.1% year on year, with operating income edging up 0.9% to ¥34.6 billion and profit attributable to owners of parent surging 42.4% to ¥30.5 billion, supported by improved comprehensive income and higher equity attributable to shareholders. The company maintained a solid financial position with total assets of ¥480.5 billion, an equity ratio of 67.4%, and cash and cash equivalents of ¥65.8 billion, while raising its annual dividend to ¥64 per share, including a commemorative payment for the 100th anniversary of Kewpie Mayonnaise, and signaling continued emphasis on shareholder returns despite a forecast decline in earnings per share in fiscal 2026 amid modestly higher sales and operating income expectations.

The most recent analyst rating on (JP:2809) stock is a Buy with a Yen4742.00 price target. To see the full list of analyst forecasts on Kewpie Corporation stock, see the JP:2809 Stock Forecast page.

Kewpie Reports Continued Progress on Multibillion-Yen Share Buyback Program

Kewpie Corporation has reported progress on its ongoing share buyback program authorized by its board in July 2025 under provisions of the Companies Act. Between December 1 and December 31, 2025, the company repurchased 588,900 shares of its common stock on the Tokyo Stock Exchange at a total cost of approximately ¥2.53 billion, contributing to a cumulative buyback of 4,578,700 shares for about ¥18.81 billion as of December 31, 2025, within its overall authorization of up to 9.6 million shares or ¥24 billion. The continued execution of this share repurchase signals Kewpie’s active capital allocation strategy, which may support shareholder returns, improve capital efficiency, and potentially influence its stock liquidity and valuation in the Japanese food sector.

The most recent analyst rating on (JP:2809) stock is a Buy with a Yen4783.00 price target. To see the full list of analyst forecasts on Kewpie Corporation stock, see the JP:2809 Stock Forecast page.

Kewpie Corporation Advances Share Buyback Program

Kewpie Corporation announced the progress of its share buyback program, acquiring 660,900 shares of its common stock at a total cost of 2,692,461,300 yen between October 1 and October 31, 2025. This move is part of a larger initiative approved by the Board of Directors to acquire up to 9.6 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:2809) stock is a Buy with a Yen4783.00 price target. To see the full list of analyst forecasts on Kewpie Corporation stock, see the JP:2809 Stock Forecast page.