Kewpie Corporation (2809) AI Stock Analysis

• Market Cap: ¥612.04B
• Dividend Yield: 1.31%
• Average Volume (3M): 482.67K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.39
• Revenue Growth: 5.50%
• EPS Growth: 27.32%
• Country: JP
• Employees: 10,517
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 52.63
• Shares Outstanding: 141,500,000
• 10 Day Avg. Volume: 395,940
• 30 Day Avg. Volume: 482,670
• PEG Ratio: 0.36
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 12.20
• 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: ¥4,453.38
• Price Target Upside: 1.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥4,783.00 ▲(8.63% Upside)

Kewpie Corporation's strong financial performance, characterized by robust revenue growth and excellent cash flow management, is the primary driver of its stock score. Technical indicators support a positive trend, although valuation metrics suggest the stock may be slightly overvalued. The absence of recent earnings call insights or notable corporate events limits additional context.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Balance Sheet Health

A robust balance sheet with low leverage provides financial stability and reduces risk, supporting sustainable growth and strategic initiatives.

Negative Factors

Profit Margin Pressure

While stable, the relatively low net profit margin may limit reinvestment capabilities and shareholder returns if not improved.

Moderate Return on Equity

Moderate ROE suggests potential inefficiencies in utilizing equity capital, which could impact long-term investor confidence and capital allocation.

Industry Competition

Intense competition in the packaged foods sector may pressure margins and market share, necessitating continuous innovation and differentiation.

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

Kewpie Corporation demonstrates strong financial health with significant revenue growth and efficient operational management. The company maintains a solid balance sheet with low leverage and strong equity financing. Impressive cash flow management enhances the company's financial flexibility and ability to fund future growth.

Income Statement

Kewpie Corporation shows strong financial performance with a significant revenue growth rate of 6.36% in the TTM. Gross profit margin at 30.52% and net profit margin at 4.43% indicate a stable profitability level within the industry. EBIT and EBITDA margins are also healthy at 7.09% and 10.67%, respectively, reflecting efficient operations and cost management.

Balance Sheet

The balance sheet reflects robust financial stability with a low debt-to-equity ratio of 0.07, highlighting conservative leverage. Return on equity stands at 7.08%, showing moderate profitability relative to equity. The equity ratio of 65.36% indicates a strong capital structure with substantial equity financing.

Cash Flow

Cash flow analysis reveals impressive free cash flow growth of 524.83%, driven by significant operating cash flow improvements. The operating cash flow to net income ratio is 2.95, indicating strong cash generation relative to reported earnings. The free cash flow to net income ratio of 1.83 further underscores excellent cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	506.50B	483.99B	455.09B	430.30B	407.04B	531.10B
Gross Profit	148.69B	147.77B	122.33B	124.19B	124.23B	125.31B
EBITDA	61.03B	51.65B	39.59B	41.68B	44.63B	43.92B
Net Income	27.72B	21.42B	13.17B	16.03B	18.01B	11.59B
Balance Sheet
Total Assets	468.92B	462.37B	426.01B	403.38B	381.00B	451.72B
Cash, Cash Equivalents and Short-Term Investments	79.89B	88.14B	68.61B	67.83B	68.34B	66.83B
Total Debt	6.90B	21.56B	31.79B	32.47B	41.73B	80.10B
Total Liabilities	130.07B	130.74B	114.70B	108.76B	111.70B	166.35B
Stockholders Equity	309.78B	302.29B	281.88B	267.66B	245.64B	239.53B
Cash Flow
Free Cash Flow	0.00	39.20B	6.28B	10.39B	26.95B	9.50B
Operating Cash Flow	0.00	63.13B	23.73B	27.20B	38.53B	34.95B
Investing Cash Flow	0.00	-23.89B	-17.72B	-15.95B	-20.28B	-26.04B
Financing Cash Flow	0.00	-21.13B	-9.51B	-16.81B	-18.70B	5.00M

Kewpie Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4403.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4403 is above the 20-day moving average (MA) of 4303.32, above the 50-day MA of 4252.28, and above the 200-day MA of 3714.49, indicating a bullish trend. The MACD of 25.04 indicates Negative momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 86.94 is Negative, 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
2809	74 Outperform	¥612.04B	22.00	9.28%	1.31%	5.50%	27.32%
2871	72 Outperform	¥482.27B	18.42	9.86%	2.55%	1.08%	2.71%
2282	70 Outperform	¥671.62B	21.23	6.04%	1.98%	5.55%	27.03%
2002	70 Outperform	¥539.31B	22.59	―	3.16%	-0.88%	-25.64%
2229	69 Neutral	¥382.65B	21.74	8.27%	1.96%	5.82%	-13.40%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2206	62 Neutral	¥352.77B	48.32	2.66%	1.66%	8.40%	-23.50%

Kewpie Corporation Corporate Events

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.

Kewpie Corporation Revises Fiscal Year 2025 Net Sales Forecast Upward

Kewpie Corporation has revised its forecast for the fiscal year ending November 30, 2025, increasing its net sales projection by 1.4% to 512,000 million yen. This adjustment is attributed to stronger-than-expected performance in the Food Service segment, driven by the rising egg market, while other financial metrics remain unchanged.

Kewpie Corporation Reports Increased Sales Amid Declining Income

Kewpie Corporation reported a 6.2% increase in net sales for the first nine months of the fiscal year ending November 30, 2025, despite a decline in operating and ordinary income by 9.2% each. The company forecasts a 5.8% increase in net sales for the full fiscal year, with a notable 36.3% rise in profit attributable to owners of the parent, reflecting strategic adjustments and market conditions.

Kewpie Corporation Advances Share Buyback Program

Kewpie Corporation has announced the acquisition of 1,095,200 shares of its own stock, amounting to a total cost of 4,549,878,800 yen, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 9,600,000 shares, reflecting a 6.91% ratio to the total outstanding shares, with a maximum budget of 24 billion yen, to be executed by May 31, 2026.