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

• Market Cap: ¥260.53B
• Dividend Yield: 1.94%
• Average Volume (3M): 253.20K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.57
• Revenue Growth: 25.63%
• EPS Growth: -24.35%
• Country: JP
• Employees: 3,184
• Sector: Consumer Defensive
• Sector Strength: 62
• Industry: Packaged Foods
• EPS (TTM): 177.20
• Shares Outstanding: 93,886,950
• 10 Day Avg. Volume: 239,900
• 30 Day Avg. Volume: 253,200
• PEG Ratio: -0.46
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.74
• 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: 66 Neutral
• 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. Business Overview & Revenue Model

Company Description

Kagome 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 Money

Kagome 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
306.66B	306.87B	224.73B	205.62B	189.65B	183.04B
	Gross Profit
98.97B	99.73B	79.80B	71.14B	69.53B	67.57B
	EBIT
25.51B	36.22B	17.47B	12.76B	14.01B	10.68B
	EBITDA
38.33B	49.32B	26.68B	20.56B	21.35B	18.00B
	Net Income Common Stockholders
16.06B	25.02B	10.43B	9.12B	9.76B	7.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.89B	25.83B	36.01B	23.09B	32.49B	57.17B
	Total Assets
333.56B	362.42B	265.65B	225.37B	215.21B	224.91B
	Total Debt
70.00B	72.72B	63.79B	42.95B	34.26B	52.92B
	Net Debt
54.12B	51.45B	27.78B	21.56B	3.03B	-3.84B
	Total Liabilities
136.31B	150.78B	129.21B	103.58B	95.67B	112.26B
	Stockholders Equity
173.26B	185.74B	132.26B	119.07B	117.56B	110.98B
Cash Flow		Free Cash Flow
14.60B	20.75B	-1.81B	-5.24B	-27.00M	14.34B
	Operating Cash Flow
26.65B	31.69B	4.62B	4.63B	14.80B	20.44B
	Investing Cash Flow
-12.06B	-46.33B	-6.06B	-9.46B	-14.16B	-3.40B
	Financing Cash Flow
-23.50B	-571.00M	15.63B	-5.51B	-27.65B	12.10B

Kagome Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2937.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2810	75 Outperform	$275.50B	21.44	4.20%	1.64%	5.28%	-26.74%
2809	74 Outperform	¥464.69B	16.50	9.19%	1.96%	5.92%	56.91%
2296	72 Outperform	¥262.15B	21.42		2.91%	3.47%	-15.46%
2811	66 Neutral	¥260.53B	16.54		1.94%	25.63%	-24.35%
Sector *	65 Neutral	$8.88B	15.03	4.75%	203.74%	3.58%	-2.49%
2264	63 Neutral	¥292.02B	50.96		2.73%	2.58%	-90.55%
2206	58 Neutral	€304.63B	54.86	2.04%	1.99%	-3.24%	-63.77%

Kagome Co., Ltd. Corporate Events

Kagome Co., Ltd. Announces Treasury Share Acquisition

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

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

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

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

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

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.