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

• Market Cap: ¥229.42B
• Dividend Yield: 2.15%
• Average Volume (3M): 377.62K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.58
• 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: 324,540
• 30 Day Avg. Volume: 377,620
• 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): 157.21
• Revenue Forecast (FY): ¥300.20B

• Rating: 67 Neutral
• Price Target: ¥3,150.00 ▲(13.00% Upside)

Kagome Co., Ltd. receives an overall score of 67, driven by its stable financial performance and moderate valuation. However, technical indicators suggest weak momentum, which could pose risks. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Profit Margins

Kagome's strong profit margins indicate effective cost management and competitive pricing, supporting long-term profitability in the packaged foods industry.

Healthy Balance Sheet

A healthy balance sheet with a manageable debt level provides Kagome with financial stability and flexibility to invest in growth opportunities.

Improved Cash Generation

Improved cash generation enhances Kagome's ability to fund operations, invest in new projects, and return value to shareholders, supporting sustainable growth.

Negative Factors

Revenue Growth Challenges

A decline in revenue growth could signal market saturation or increased competition, potentially impacting Kagome's long-term market share and growth prospects.

Low Cash Conversion Efficiency

Low cash conversion efficiency suggests potential inefficiencies in operations, which could hinder Kagome's ability to generate cash from its earnings, affecting liquidity.

Decline in EBIT and EBITDA Margins

A decline in EBIT and EBITDA margins indicates rising costs or pricing pressures, which could erode profitability if not addressed, impacting long-term financial health.

Kagome Co., Ltd. Business Overview & Revenue Model

Company Description

Kagome Co., Ltd. (2811) is a leading Japanese company specializing in the production and distribution of tomato-based products, including sauces, pastes, and juices, as well as a wide range of vegetable products. Founded in 1899, Kagome operates primarily in the food and beverage sector, focusing on both retail and food service markets. The company is known for its commitment to quality and innovation, providing nutritious and delicious products that cater to various consumer preferences.

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	297.31B	306.87B	224.73B	205.62B	189.65B	183.04B
Gross Profit	95.50B	99.73B	79.80B	71.14B	69.53B	67.57B
EBITDA	33.49B	49.32B	26.68B	20.56B	21.35B	18.00B
Net Income	13.42B	25.02B	10.43B	9.12B	9.76B	7.42B
Balance Sheet
Total Assets	329.51B	362.42B	265.65B	225.37B	215.21B	224.91B
Cash, Cash Equivalents and Short-Term Investments	18.92B	25.83B	36.01B	23.09B	32.49B	57.17B
Total Debt	65.65B	72.72B	63.79B	42.95B	34.26B	52.92B
Total Liabilities	134.60B	150.78B	129.21B	103.58B	95.67B	112.26B
Stockholders Equity	171.37B	185.74B	132.26B	119.07B	117.56B	110.98B
Cash Flow
Free Cash Flow	16.33B	20.75B	-1.81B	-5.24B	-27.00M	14.34B
Operating Cash Flow	28.47B	31.69B	4.62B	4.63B	14.80B	20.44B
Investing Cash Flow	-11.56B	-46.33B	-6.06B	-9.46B	-14.16B	-3.40B
Financing Cash Flow	-22.01B	-571.00M	15.63B	-5.51B	-27.65B	12.10B

Kagome Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2787.50
• 50DMA: Negative
• 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 Negative. The current price of 2787.5 is above the 20-day moving average (MA) of 2680.22, above the 50-day MA of 2739.81, and below the 200-day MA of 2884.97, indicating a bearish trend. The MACD of -20.29 indicates Negative momentum. The RSI at 44.87 is Neutral, neither overbought nor oversold. The STOCH value of 26.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$280.52B	21.43	4.19%	1.67%	0.74%	5.88%
2809	74 Outperform	€597.03B	21.46	9.28%	1.34%	5.50%	27.32%
2811	67 Neutral	¥229.42B	19.50	―	2.15%	3.69%	-50.13%
2264	65 Neutral	¥293.61B	39.42	―	2.47%	2.33%	-8.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2206	62 Neutral	¥350.69B	48.03	2.66%	1.66%	8.40%	-23.50%
2296	62 Neutral	¥288.92B	18.92	―	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.

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.

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.

Kagome Co., Ltd. Announces Leadership Change for Sustainable Growth

Kagome Co., Ltd. announced a change in its leadership as part of a new Medium-term Management Plan aimed at strengthening its management structure for sustainable growth. Harunobu Okuya will assume the role of Representative Director, President & CEO, effective January 1, 2026, succeeding Satoshi Yamaguchi, who will become Chairman of the Board.