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

• Market Cap: ¥232.82B
• Dividend Yield: 2.11%
• Average Volume (3M): 315.24K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.57
• Revenue Growth: 3.69%
• EPS Growth: -50.13%
• Country: JP
• Employees: 3,184
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 49.34
• Shares Outstanding: 91,132,840
• 10 Day Avg. Volume: 280,060
• 30 Day Avg. Volume: 315,236
• PEG Ratio: 0.08
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 12.87
• 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: 66 Neutral
• Price Target: ¥2,918.00 ▲(4.68% Upside)

Kagome Co., Ltd. has a stable financial position with a strong balance sheet and improving cash flow, but faces challenges with declining revenue growth and reduced margins. The technical analysis indicates a bearish trend, while the valuation is fair. These factors result in an overall moderate stock score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with manageable debt levels provides financial flexibility and resilience, supporting long-term strategic initiatives.

Cash Flow Improvement

Improving cash flow indicates effective cash management and enhances the company's ability to invest in growth opportunities and return value to shareholders.

Stable Gross Profit Margin

A stable gross profit margin suggests consistent pricing power and cost control, which are crucial for long-term profitability and competitive positioning.

Negative Factors

Declining Revenue Growth

Declining revenue growth can signal weakening demand or competitive pressures, potentially impacting future earnings and market share.

Reduced Margins

Reduced margins indicate challenges in operational efficiency, which could affect profitability and necessitate cost management improvements.

Decline in Return on Equity

A declining return on equity suggests reduced profitability relative to shareholder investment, potentially impacting investor confidence and capital allocation.

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

Kagome Co., Ltd. demonstrates a stable financial position with solid profit margins and a healthy balance sheet. However, challenges in revenue growth and cash conversion efficiency indicate areas for improvement.

Income Statement

Kagome Co., Ltd. shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 3.05%, which is concerning. However, the company maintains a healthy gross profit margin of 32.27% and a net profit margin of 5.24%, which are competitive within the packaged foods industry. The EBIT and EBITDA margins are also solid at 8.57% and 12.50%, respectively, although they have decreased compared to the previous year.

Balance Sheet

The balance sheet of Kagome Co., Ltd. is relatively strong. The debt-to-equity ratio is at a manageable level of 0.40, indicating a balanced approach to leveraging. The return on equity (ROE) stands at 9.30%, showing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the company's equity position appears stable given the total assets and equity figures.

Cash Flow

Cash flow analysis reveals some strengths and weaknesses. The free cash flow growth rate is positive at 11.85%, indicating improved cash generation. However, the operating cash flow to net income ratio is relatively low at 0.28, suggesting potential inefficiencies in converting income into cash. The free cash flow to net income ratio is moderate at 0.55, reflecting a reasonable level of cash retention from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	296.80B	306.87B	224.73B	205.62B	189.65B	183.04B
Gross Profit	94.50B	99.73B	79.80B	71.14B	69.53B	67.57B
EBITDA	32.45B	49.32B	26.68B	20.56B	21.35B	18.00B
Net Income	12.58B	25.02B	10.43B	9.12B	9.76B	7.42B
Balance Sheet
Total Assets	372.55B	362.42B	265.65B	225.37B	215.21B	224.91B
Cash, Cash Equivalents and Short-Term Investments	25.75B	25.83B	36.01B	23.09B	32.49B	57.17B
Total Debt	86.88B	72.72B	63.79B	42.95B	34.26B	52.92B
Total Liabilities	170.24B	150.78B	129.21B	103.58B	95.67B	112.26B
Stockholders Equity	178.69B	185.74B	132.26B	119.07B	117.56B	110.98B
Cash Flow
Free Cash Flow	19.05B	20.75B	-1.81B	-5.24B	-27.00M	14.34B
Operating Cash Flow	30.37B	31.69B	4.62B	4.63B	14.80B	20.44B
Investing Cash Flow	-10.77B	-46.33B	-6.06B	-9.46B	-14.16B	-3.40B
Financing Cash Flow	-42.22B	-571.00M	15.63B	-5.51B	-27.65B	12.10B

Kagome Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2787.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 2787.5 is above the 20-day moving average (MA) of 2671.95, above the 50-day MA of 2649.25, and below the 200-day MA of 2812.39, indicating a neutral trend. The MACD of 13.57 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥282.66B	21.60	4.19%	1.66%	0.74%	5.88%
2809	74 Outperform	¥584.65B	21.02	9.28%	1.30%	5.50%	27.32%
2811	66 Neutral	¥232.82B	19.79	―	2.11%	3.69%	-50.13%
2264	65 Neutral	¥334.86B	29.95	―	2.42%	2.33%	-8.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2206	62 Neutral	¥354.46B	48.55	2.66%	1.64%	8.40%	-23.50%
2296	62 Neutral	¥304.29B	19.93	―	2.61%	6.54%	15.08%

Kagome Co., Ltd. Corporate Events

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.

Kagome Co., Ltd. Reports Decline in Financial Performance for 2025

Kagome Co., Ltd. reported a decline in its financial performance for the nine months ending September 30, 2025, with significant drops in revenue, core operating income, and net income compared to the previous year. The company is facing challenges in maintaining its financial health, as evidenced by a decrease in earnings per share and a forecasted reduction in dividends for the fiscal year ending December 31, 2025, which may impact investor confidence.

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.