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Kagome Co., Ltd. (JP:2811)
:2811
Japanese Market

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

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JP

Kagome Co., Ltd.

(2811)

Rating:66Neutral
Price Target:
¥3,186.00
▲(8.48%Upside)
Kagome Co., Ltd. maintains a solid financial position with strong revenue growth, though increasing leverage and cash flow management are concerns. Technical indicators show neutral momentum, and the stock appears fairly valued. These factors contribute to a moderate overall stock score.

Kagome Co., Ltd. (2811) vs. iShares MSCI Japan ETF (EWJ)

Kagome Co., Ltd. Business Overview & Revenue Model

Company DescriptionKagome Co., Ltd. (2811) is a prominent Japanese food manufacturer specializing in the production and sale of tomato-based products, juices, and other vegetable-based beverages. Founded in 1899 and headquartered in Nagoya, Japan, Kagome has established itself as a leader in the food industry by leveraging its expertise in agricultural and food processing technologies. The company is known for its flagship products, including tomato ketchup, sauces, and a wide range of healthy drinks, catering to both domestic and international markets.
How the Company Makes MoneyKagome Co., Ltd. generates revenue through the manufacturing and sale of its diverse range of food products, with a primary focus on tomato-based offerings. The company's key revenue streams include the sale of processed foods such as ketchup, sauces, canned tomatoes, and vegetable juices. Additionally, Kagome benefits from its international operations, exporting products to various markets across the globe. The company also engages in strategic partnerships and collaborations to enhance its agricultural capabilities and product development, further supporting its revenue growth. Factors contributing to Kagome's earnings include its strong brand reputation, commitment to quality, and continuous innovation in product offerings to meet consumer demand for health-conscious and sustainable food options.

Kagome Co., Ltd. Financial Statement Overview

Summary
Kagome Co., Ltd. demonstrates robust financial health, with substantial revenue and cash flow growth. The solid balance sheet, marked by low leverage and a strong equity base, provides a secure foundation for future operations. However, there is room for improvement in net profit margins and consistent positive free cash flow.
Income Statement
87
Very Positive
Kagome Co., Ltd. has demonstrated robust growth with a significant increase in revenue from the previous year, showing a strong revenue growth rate of 36.47%. The company also maintained healthy profitability margins, with a gross profit margin of 32.5% and a net profit margin of 8.2% in the latest annual report. The EBIT and EBITDA margins improved, indicating efficient operational management. However, the net profit margin, although positive, suggests there could be room for improvement in net income conversion.
Balance Sheet
78
Positive
The balance sheet of Kagome Co., Ltd. reflects a solid equity base with a commendable equity ratio of 51.3%, indicating a strong financial foundation. The debt-to-equity ratio stands at 0.39, which suggests a conservative leverage position, reducing financial risk. Return on equity (ROE) is strong at 13.5%, demonstrating effective use of equity to generate profits. The company shows stability in its financial structure, though continuous monitoring of debt levels is advisable to maintain this balance.
Cash Flow
81
Very Positive
Kagome Co., Ltd. has shown a remarkable improvement in free cash flow, turning positive after previous negative values, with a significant free cash flow growth rate of 1246.11%. The operating cash flow to net income ratio of 1.27 indicates efficient cash conversion from earnings. Despite previous years of negative free cash flow, the latest financial year shows strong cash flow management, although sustained positive free cash flow should be achieved consistently to enhance financial flexibility.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
306.66B306.87B224.73B205.62B189.65B183.04B
Gross Profit
98.97B99.73B79.80B71.14B69.53B67.57B
EBIT
25.51B36.22B17.47B12.76B14.01B10.68B
EBITDA
38.33B49.32B26.68B20.56B21.35B18.00B
Net Income Common Stockholders
16.06B25.02B10.43B9.12B9.76B7.42B
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.89B25.83B36.01B23.09B32.49B57.17B
Total Assets
333.56B362.42B265.65B225.37B215.21B224.91B
Total Debt
70.00B72.72B63.79B42.95B34.26B52.92B
Net Debt
54.12B51.45B27.78B21.56B3.03B-3.84B
Total Liabilities
136.31B150.78B129.21B103.58B95.67B112.26B
Stockholders Equity
173.26B185.74B132.26B119.07B117.56B110.98B
Cash FlowFree Cash Flow
14.60B20.75B-1.81B-5.24B-27.00M14.34B
Operating Cash Flow
26.65B31.69B4.62B4.63B14.80B20.44B
Investing Cash Flow
-12.06B-46.33B-6.06B-9.46B-14.16B-3.40B
Financing Cash Flow
-23.50B-571.00M15.63B-5.51B-27.65B12.10B

Kagome Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2937.00
Price Trends
50DMA
2960.21
Negative
100DMA
2937.64
Negative
200DMA
2984.63
Negative
Market Momentum
MACD
-9.56
Positive
RSI
45.58
Neutral
STOCH
27.54
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 2937 is below the 20-day moving average (MA) of 2959.60, below the 50-day MA of 2960.21, and below the 200-day MA of 2984.63, indicating a bearish trend. The MACD of -9.56 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 27.54 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$275.50B21.444.20%1.64%5.28%-26.74%
74
Outperform
¥464.69B16.509.19%1.96%5.92%56.91%
72
Outperform
¥262.15B21.42
2.91%3.47%-15.46%
66
Neutral
¥260.53B16.54
1.94%25.63%-24.35%
65
Neutral
$8.88B15.034.75%203.74%3.58%-2.49%
63
Neutral
¥292.02B50.96
2.73%2.58%-90.55%
58
Neutral
€304.63B54.862.04%1.99%-3.24%-63.77%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2811
Kagome Co., Ltd.
2,945.50
-629.92
-17.62%
JP:2264
Morinaga Milk Industry Co., Ltd.
3,294.00
115.86
3.65%
JP:2296
Itoham Yonekyu Holdings, Inc.
4,945.00
921.24
22.90%
JP:2206
Ezaki Glico Co., Ltd.
4,649.00
589.44
14.52%
JP:2809
Kewpie Corporation
3,343.00
295.39
9.69%
JP:2810
House Foods Group
2,824.50
-36.53
-1.28%

Kagome Co., Ltd. Corporate Events

Kagome Co., Ltd. Announces Treasury Share Acquisition
Jun 4, 2025

Kagome Co., Ltd. announced the acquisition of 348,200 treasury shares at a cost of 1,034,777,950 yen through open-market purchases on the Tokyo Stock Exchange during May 2025. This move is part of a broader resolution by the Board of Directors to acquire up to 3.4% of the company’s total issued shares, reflecting a strategic effort to manage capital and potentially enhance shareholder value.

The most recent analyst rating on (JP:2811) stock is a Hold with a Yen3200.00 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. Confirms Interim Financial Results Amid Market Challenges
May 9, 2025

Kagome Co., Ltd. announced the completion of its interim review for the consolidated financial results for the first quarter of 2025, confirming no changes to the previously disclosed figures. The financial results indicate a slight decrease in revenue and significant declines in core operating income, operating income, and net income compared to the same period last year, reflecting challenging market conditions.

Kagome Co., Ltd. Reports Decline in Q1 2025 Financial Performance
Apr 30, 2025

Kagome Co., Ltd. reported a decline in financial performance for the first quarter of 2025, with revenue slightly decreasing by 0.3% and net income attributable to shareholders plummeting by 75.5% compared to the same period in the previous year. The company forecasts a continued decrease in revenue and income for the fiscal year ending December 31, 2025, reflecting challenges in maintaining profitability and market position.

Kagome Co., Ltd. Continues Performance-Linked Remuneration System for Directors
Apr 21, 2025

Kagome Co., Ltd. has announced the continuation of its medium to long-term performance-linked remuneration system for its directors, excluding certain categories such as audit and supervisory committee members and external directors. This system, known as the Board Incentive Plan trust, aims to align director remuneration with shareholder value and motivate directors to create long-term value. The system involves the delivery of Kagome shares and cash to directors based on performance targets, with specific mechanisms in place for the acquisition and distribution of shares through a trust structure. This move is expected to enhance transparency and align the interests of directors with those of shareholders.

Kagome Co., Ltd. Announces Treasury Share Acquisition
Apr 3, 2025

Kagome Co., Ltd. announced the acquisition of 317,200 treasury shares at a cost of 949,561,250 yen through open-market purchases on the Tokyo Stock Exchange during March 2025. This move is part of a broader resolution by the Board of Directors to acquire up to 3,200,000 shares, representing 3.4% of the company’s total issued shares, by August 2025, indicating a strategic effort to manage its capital structure and potentially enhance shareholder value.

Kagome Co., Ltd. Announces Voting Results from 81st Annual Shareholders Meeting
Mar 31, 2025

Kagome Co., Ltd. announced the results of voting rights exercised at its 81st Annual General Meeting of Shareholders. The meeting saw a total of 62.56% of voting rights exercised, with the proposal for the election of six directors being approved by a significant majority. This outcome reflects strong shareholder support and is likely to impact the company’s governance and strategic direction positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.