Kagome Co., Ltd. (2811) AI Stock Analysis

• Market Cap: ¥245.22B
• Dividend Yield: 2.11%
• Average Volume (3M): 315.24K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.53
• Revenue Growth: 3.69%
• EPS Growth: -50.13%
• Country: JP
• Employees: 3,184
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 45.27
• Shares Outstanding: 91,132,840
• 10 Day Avg. Volume: 280,060
• 30 Day Avg. Volume: 315,236
• PEG Ratio: -0.40
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 15.91
• 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: 63 Neutral
• Price Target: ¥2,918.00 ▲(4.68% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily driven by a solid balance sheet and ongoing positive free cash flow, offset by a notable TTM drop in operating and net margins and softer cash-flow momentum. Technicals are broadly neutral-to-mixed, and valuation appears moderate with a modest dividend yield.

Positive Factors

Balance sheet strength

Moderate leverage (debt-to-equity ~0.49) and expanding equity provide durable financial flexibility. This balance-sheet strength supports capital allocation for capex, working-capital needs, and targeted M&A or marketing investments, reducing refinancing risk over the next 2–6 months.

Positive free cash flow

Sustained positive free cash flow (¥15.5B TTM) underpins internal funding for dividends, working capital, and modest reinvestment without heavy new borrowing. Reliable cash generation increases resilience to demand swings and supports execution of long-term strategic initiatives.

Category leadership & diversified channels

Kagome's strong brand in tomato and vegetable categories plus revenue streams across consumer, B2B, and overseas channels create structural advantages. Brand equity and diversified distribution reduce concentration risk and support steady demand and pricing power over the medium term.

Negative Factors

Margin deterioration

Sharp declines in operating and net margins materially reduce internal profitability and return on capital. If elevated cost pressures or structural mix changes persist, margin compression will limit reinvestment capacity, dividend sustainability, and ROE recovery over the coming quarters.

Flat-to-declining revenue trend

Stagnant or slightly falling top-line growth constrains scale benefits and puts pressure on operating leverage. Without renewed revenue expansion from product innovation, channel gains, or overseas growth, margin recovery and long-term EPS growth will be harder to achieve.

Weaker cash-flow momentum

An ~18% drop in free cash flow and weaker cash conversion reduce financial flexibility compared with the prior year. This weaker momentum can constrain discretionary investment, slower paydown of leverage, or dividend increases, making the company more sensitive to adverse shocks.

Kagome Co., Ltd. Business Overview & Revenue Model

Company Description

Kagome Co., Ltd. manufactures and sells condiments, foods, and beverages in Japan. The company offers condiments, supplements, soups, and other products. It is also involved in the purchase, production, and sale of seeds, seedlings, fruits, and vegetables, as well as real estate and contracted service businesses. The company was founded in 1899 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Kagome generates revenue primarily through the sale of its tomato and vegetable products, which are distributed through various channels, including supermarkets, convenience stores, and food service providers. The company has established strong partnerships with agricultural producers to ensure a steady supply of high-quality raw materials. Additionally, Kagome invests in branding and marketing strategies to enhance consumer awareness and loyalty, which contributes to its sales growth. The company also explores international markets, expanding its presence and diversifying its revenue streams through exports. Seasonal demand fluctuations and health trends, such as the growing consumer interest in plant-based diets, also play a significant role in shaping its revenue model.

Kagome Co., Ltd. Financial Statement Overview

Summary

Balance sheet strength is a key support (debt-to-equity ~0.49 remains moderate), and the company is still generating positive free cash flow (TTM FCF ¥15.5B). However, TTM profitability weakened materially (net margin ~4.2% vs ~8.2% in 2024; operating margin ~7.0% vs ~12.2%), and revenue is flat-to-down, indicating a near-term earnings power reset.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat-to-down versus the prior year, and profitability stepped down materially: net margin fell to ~4.2% (from ~8.2% in 2024) and operating margin declined to ~7.0% (from ~12.2%). Gross margin remains relatively steady around ~32%, but the sharp drop in operating and net profitability suggests higher operating costs and/or one-off pressures. Longer-term, revenue rose meaningfully from 2021–2024, but the latest TTM shows a clear near-term slowdown in earnings power.

Balance Sheet

The balance sheet looks solid with moderate leverage: debt-to-equity is ~0.49 in TTM (vs ~0.39 in 2024), indicating some leverage pickup but still not excessive for a packaged foods company. Equity has grown versus earlier years, supporting balance sheet resilience. Returns on equity cooled to ~7.1% in TTM (from ~13.5% in 2024), reflecting weaker profitability rather than balance sheet stress.

Cash Flow

Cash generation is positive and improved versus the weaker 2022–2023 period: TTM operating cash flow is ¥26.9B and free cash flow is ¥15.5B, with free cash flow covering ~63% of net income. However, free cash flow declined versus 2024 (down ~18%), and cash conversion is not particularly strong given the company’s earnings base, pointing to working-capital and/or investment needs weighing on near-term cash flow momentum.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	294.26B	306.87B	224.73B	205.62B	189.65B
Gross Profit	95.41B	99.73B	79.80B	71.14B	69.53B
EBITDA	35.22B	49.32B	26.68B	20.56B	21.35B
Net Income	14.80B	25.02B	10.43B	9.12B	9.76B
Balance Sheet
Total Assets	375.82B	362.42B	265.65B	225.37B	215.21B
Cash, Cash Equivalents and Short-Term Investments	26.84B	25.83B	36.01B	23.09B	32.49B
Total Debt	82.50B	72.72B	63.79B	42.95B	34.26B
Total Liabilities	160.93B	150.78B	129.21B	103.58B	95.67B
Stockholders Equity	190.56B	185.74B	132.26B	119.07B	117.56B
Cash Flow
Free Cash Flow	15.54B	20.75B	-1.81B	-5.24B	-27.00M
Operating Cash Flow	26.93B	31.69B	4.62B	4.63B	14.80B
Investing Cash Flow	-11.48B	-46.33B	-6.06B	-9.46B	-14.16B
Financing Cash Flow	-10.39B	-571.00M	15.63B	-5.51B	-27.65B

Kagome Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2787.50
• 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:2811, the sentiment is Neutral. The current price of 2787.5 is below the 20-day moving average (MA) of 2819.30, above the 50-day MA of 2745.47, and below the 200-day MA of 2795.41, indicating a neutral trend. The MACD of 29.89 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 28.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2811.

Kagome Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2810	74 Outperform	¥298.30B	23.55	4.19%	1.66%	0.74%	5.88%
2805	73 Outperform	¥111.11B	13.15	―	1.08%	0.48%	-4.27%
2801	72 Outperform	¥1.43T	23.34	11.19%	1.46%	2.65%	-5.76%
2809	71 Outperform	¥630.11B	20.55	9.28%	1.30%	5.50%	27.32%
2811	63 Neutral	¥245.22B	17.64	―	2.11%	3.69%	-50.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2802	61 Neutral	$4.51T	58.30	9.46%	1.32%	1.99%	-18.79%

Kagome Co., Ltd. Corporate Events

Kagome Outlines FY2025 Results and FY2026 Outlook Under PLAN 2028

Kagome Co., Ltd. released briefing materials outlining its fiscal year 2025 financial results and its earnings forecast for fiscal year 2026 under the Kagome Group PLAN 2028, providing headline financial information in rounded figures. The disclosure signals ongoing execution of its medium-term management plan and offers investors and stakeholders a structured view of recent performance and near-term earnings expectations, which will underpin assessment of Kagome’s progress toward its 2028 targets and its positioning in the food industry.

The most recent analyst rating on (JP:2811) stock is a Buy with a Yen2999.00 price target. To see the full list of analyst forecasts on Kagome Co., Ltd. stock, see the JP:2811 Stock Forecast page.

Kagome Earnings Slump in 2025 but Forecasts Revenue Recovery and Higher Dividend for 2026

Kagome reported a challenging fiscal year ended December 31, 2025, with consolidated revenue down 4.1% to ¥294.3 billion and core operating income down 16.2%, while net income attributable to shareholders fell 40.8%, reflecting weaker profitability and a sharp drop in operating margin. Despite the earnings decline, total assets and net assets both increased modestly, cash flows from operating activities remained solid, and cash and cash equivalents at year-end rose versus the prior year, indicating a stable balance sheet. The company cut its annual dividend from ¥57 to ¥48 per share for 2025, raising the payout ratio due to lower profits, but is forecasting a recovery in topline performance in 2026 with revenue expected to grow 5.3% to ¥310 billion and core and operating income projected to improve under early adoption of IFRS 18, even as it guides for a further decline in net income per share. This mix of weaker current earnings, maintained financial stability, and cautious yet growth-oriented guidance suggests Kagome is in a transition phase, prioritizing earnings normalization and regulatory accounting changes while still aiming to deliver shareholder returns through an expected higher dividend in 2026.

The most recent analyst rating on (JP:2811) stock is a Buy with a Yen2999.00 price target. To see the full list of analyst forecasts on Kagome Co., Ltd. stock, see the JP:2811 Stock Forecast page.

Kagome Acquires Silbury to Boost European Market Presence

Kagome Co., Ltd. has announced the acquisition of Silbury Marketing Ltd, a UK-based distributor of processed tomato and oil products, making it a consolidated subsidiary. This strategic move aims to strengthen Kagome’s operations in Europe by enabling closer collaboration between marketing, development, production, and sales functions, thereby enhancing its competitiveness in the growing European market for processed tomato products.

The most recent analyst rating on (JP:2811) stock is a Hold with a Yen3150.00 price target. To see the full list of analyst forecasts on Kagome Co., Ltd. stock, see the JP:2811 Stock Forecast page.

Kagome Co., Ltd. Completes Interim Financial Review Amid Declining Revenue

Kagome Co., Ltd. announced the completion of its interim review for the consolidated financial results for the nine months ending September 30, 2025, with no changes from the previously disclosed figures. The company reported a decline in revenue and net income compared to the previous year, indicating a challenging period for its operations. Despite these results, the company has not adjusted its dividend forecast, maintaining a cautious outlook for the fiscal year ending December 31, 2025.

The most recent analyst rating on (JP:2811) stock is a Hold with a Yen3150.00 price target. To see the full list of analyst forecasts on Kagome Co., Ltd. stock, see the JP:2811 Stock Forecast page.