House Foods Group (2810) AI Stock Analysis

• Market Cap: ¥275.25B
• Dividend Yield: 1.7%
• Average Volume (3M): 188.37K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.26
• Revenue Growth: 5.28%
• EPS Growth: -26.74%
• Country: JP
• Employees: 6,643
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): 3.72
• Shares Outstanding: 98,498,410
• 10 Day Avg. Volume: 217,590
• 30 Day Avg. Volume: 188,370
• PEG Ratio: 133.91
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 63.69
• 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

• Rating: 75 Outperform
• Price Target: ¥3,162.00 ▲(12.39%Upside)

House Foods Group has a solid financial performance with consistent revenue growth and strong cash flow. The technical analysis shows stable price movements, though momentum is weak. The valuation is fair, providing moderate income potential. No significant impact from earnings call or corporate events.

House Foods Group Business Overview & Revenue Model

Company Description

House Foods Group Inc. engages in the manufacture, sale, import, and export of spices, seasonings, processed foods, and commercial use food products in Japan and internationally. It operates through Spice/Seasoning/Processed Food Business, Health Food Business, Restaurant Business, International Food Business, and Other Food Related Business segments. The company offers curry, stew, starch, processed meat, retort pouched food products, etc.; condiments, such as curry roux products; soy-bean products, prepared dishes, baked breads, dessert products, and beverages; health food products through mail-order; and frozen vegetables, mustard essential oils, processed foods, etc. It also conducts agricultural management; processes and sells agricultural products; provides safety and sanitation analysis for food products; and operates and transport and warehouses. In addition, the company is involved in the restaurant operations guidance and trading services; and marketing of vegetables. It operates 1,259 restaurants in Japan and 202 restaurants internationally under the Ichibanya name. The company was formerly known as House Foods Corp and changed its name to House Foods Group Inc. in 2013. House Foods Group Inc. was founded in 1913 and is headquartered in Tokyo, Japan.

How the Company Makes Money

House Foods Group generates revenue through the sale of its diverse range of food products, primarily focusing on the domestic Japanese market while also expanding its presence internationally. The company earns money by producing and marketing a variety of spices, seasonings, packaged foods, and soy-based products like tofu. Key revenue streams include retail sales to consumers, partnerships with supermarkets and convenience stores, and supplying food products to the foodservice industry. The company's earnings are bolstered by its emphasis on product innovation, quality assurance, and strategic marketing initiatives. Significant factors contributing to its revenue include its strong brand recognition, efficient supply chain management, and its ability to adapt to changing consumer preferences toward healthier and more convenient food options.

House Foods Group Financial Statement Overview

Summary

House Foods Group shows consistent revenue growth and strong cash flow generation, with a low debt-to-equity ratio and a healthy equity ratio. However, the declining net income trend requires attention.

Income Statement

House Foods Group demonstrates consistent revenue growth over the years, with a notable increase in gross profit margin, currently at 36.4%. The net profit margin is stable at 4.0%, reflecting efficient cost management. However, the decline in net income from the previous year poses a concern. EBIT and EBITDA margins remain robust at 6.3% and 10.9% respectively, indicating solid operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.07, showcasing prudent financial leverage. The return on equity is reasonable at 4.3%, indicating moderate profitability from shareholder investments. The equity ratio stands at a healthy 67.3%, reflecting a stable financial structure. However, relatively low net income impacts the overall return metrics.

Cash Flow

Operating cash flow remains robust, with a satisfactory operating cash flow to net income ratio of 2.1, indicating strong cash conversion from earnings. The free cash flow to net income ratio is healthy at 1.1, ensuring good liquidity and potential for reinvestment. The free cash flow growth rate of 4.0% from the previous year suggests positive cash management trends.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
313.26B	315.42B	299.60B	275.06B	253.39B	283.75B
	Gross Profit
114.83B	114.78B	108.96B	97.93B	95.00B	126.76B
	EBIT
20.50B	20.00B	19.47B	16.63B	19.23B	19.40B
	EBITDA
29.53B	34.36B	41.08B	33.47B	30.21B	31.14B
	Net Income Common Stockholders
13.39B	12.49B	17.58B	13.67B	13.96B	8.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.64B	98.48B	80.76B	70.75B	81.01B	88.42B
	Total Assets
429.65B	435.07B	431.60B	396.73B	382.02B	369.15B
	Total Debt
13.72B	20.29B	12.33B	10.65B	5.86B	5.41B
	Net Debt
-60.42B	-77.20B	-68.44B	-54.10B	-69.14B	-73.50B
	Total Liabilities
110.47B	112.19B	109.99B	95.39B	83.45B	81.86B
	Stockholders Equity
289.82B	292.82B	292.21B	272.29B	268.97B	258.14B
Cash Flow		Free Cash Flow
0.00	13.41B	12.90B	4.32B	2.37B	12.19B
	Operating Cash Flow
0.00	26.57B	25.57B	19.48B	16.14B	23.18B
	Investing Cash Flow
0.00	-12.28B	-2.30B	-21.47B	-10.40B	-8.56B
	Financing Cash Flow
0.00	-9.06B	-7.38B	-12.74B	-10.07B	-6.17B

House Foods Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2813.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2810, the sentiment is Positive. The current price of 2813.5 is above the 20-day moving average (MA) of 2771.30, above the 50-day MA of 2784.08, and below the 200-day MA of 2835.09, indicating a neutral trend. The MACD of 6.72 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 88.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2810.

House Foods Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2810	75 Outperform	¥275.25B	21.42	4.20%	1.70%	5.28%	-26.74%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
5EJ		€1.82B	51.66	2.04%	1.99%	―	―
2296	72 Outperform	¥262.15B	21.42		3.03%	3.47%	-15.46%
2811	68 Neutral	¥261.77B	16.62		1.94%	25.63%	-24.35%
2264	63 Neutral	¥291.22B	50.82		2.74%	2.58%	-90.55%
2607	46 Neutral	¥252.08B	113.05		1.77%	18.99%	-65.81%