Wakou Shokuhin Co., Ltd. (2813) AI Stock Analysis

• Market Cap: ¥9.85B
• Dividend Yield: 3.11%
• Average Volume (3M): 4.04K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.80
• Revenue Growth: 3.42%
• EPS Growth: -10.05%
• Country: JP
• Employees: 279
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 185.47
• Shares Outstanding: 2,847,957
• 10 Day Avg. Volume: 6,700
• 30 Day Avg. Volume: 4,036
• PEG Ratio: 0.87
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 12.31
• 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: 71 Outperform
• Price Target: ¥3,945.00 ▲(27.46% Upside)
• Action: Reiterated Date: 08/09/25
• Date: Action: Reiterated 08/09/25

Wakou Shokuhin Co., Ltd. has a strong financial foundation and attractive valuation, which are significant positives. However, the current bearish technical indicators suggest caution in the short term. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth and Scale

Consistent revenue growth from ¥11.0bn to ¥16.2bn (2020–2025) signals durable demand and expanding market presence. This trend supports reinvestment, incremental operating leverage and reduces reliance on single customers, strengthening the long-term revenue base.

Margin Expansion

Sustained improvement in gross margin (23.9% to 28.5%) and a positive net margin (7.4% in 2025) reflect lasting cost control and some pricing power. Higher structural margins enhance free cash flow potential and resilience to input-cost variability over the medium term.

Balance Sheet Strength & Cash Generation

Material reduction in leverage plus a 14.1% ROE and ¥909m free cash flow in 2025 indicate conservative capital structure and strong cash conversion. This provides durable financial flexibility for capex, dividends or debt repayment without jeopardizing operations.

Negative Factors

Modest EBIT Margin

An EBIT margin of 9.8% is modest for a packaged-foods company and constrains the firm's ability to self-fund growth or absorb commodity inflation. Persistently lower operating margins can limit competitive investment and long-term return expansion versus higher-margin peers.

Negative EPS Trend

Negative EPS growth (-5.25%) signals per-share earnings deterioration over the measured period. If sustained, this undermines shareholder returns and may indicate structural issues such as margin pressure, non-recurring items, or unfavorable capital actions affecting long-term earnings quality.

Limited Scale & Market Liquidity

Relatively small scale (≈279 employees, ¥16.2bn revenue) and low trading liquidity can limit bargaining power with suppliers, distribution reach and ability to invest at scale. Smaller footprint may slow market-share gains and leave less room for fixed-cost absorption long term.

Wakou Shokuhin Co., Ltd. Business Overview & Revenue Model

Company Description

Wakou Shokuhin Co., Ltd. manufactures and sells soups and natural extracts in Japan and internationally. The company offers Ramen soups; and acts as an OEM manufacturer of various seasonings, primarily of Ramen soup. It sells its products through food manufacturers, hotels, restaurants, supermarkets, convenience stores, etc. The company was founded in 1964 and is headquartered in Otaru, Japan.

How the Company Makes Money

Wakou Shokuhin generates revenue primarily through the sale of its food products, which include a diverse portfolio of seasonings, sauces, and ready-to-eat meals. The company has established strong relationships with retailers and distributors, which facilitates its market reach and contributes significantly to its sales. Key revenue streams include direct sales to supermarkets, convenience stores, and food service providers, as well as export sales to international markets. Additionally, Wakou Shokuhin often engages in partnerships with other food manufacturers and culinary institutions to develop new products or co-brand items, which can also enhance revenue opportunities. The company's focus on innovation and product development allows it to respond to changing consumer preferences and maintain a competitive edge in the food industry.

Wakou Shokuhin Co., Ltd. Financial Statement Overview

Summary

Wakou Shokuhin Co., Ltd. exhibits strong financial performance with consistent revenue and profit growth, efficient cost management, and a stable capital structure. The company shows a notable increase in revenue and improved profit margins. However, there is room for improvement in EBIT margins.

Income Statement

Wakou Shokuhin Co., Ltd. shows strong revenue growth with a notable increase from ¥11 billion in 2020 to ¥16.2 billion in 2025. The gross profit margin has improved consistently from 23.9% to 28.5% over this period, indicating efficient cost management. The net profit margin has also strengthened from negative to 7.4% in 2025. However, the EBIT margin, while positive, shows room for improvement at 9.8% in 2025.

Balance Sheet

The company's financial leverage appears stable with a debt-to-equity ratio decreasing from 0.81 in 2020 to 0.40 in 2025, showing a prudent approach to debt management. The return on equity (ROE) has shown significant improvement, reaching 14.1% in 2025, reflecting effective utilization of equity. The equity ratio has also improved, indicating a solid capital structure.

Cash Flow

Wakou Shokuhin Co., Ltd. demonstrates strong operational cash flows, with a consistent increase in free cash flow over the years, culminating at ¥909 million in 2025. The operating cash flow to net income ratio remains solid, indicating efficient cash generation from operations. The free cash flow to net income ratio also suggests robust cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.22B	16.25B	15.42B	13.50B	11.49B	9.98B
Gross Profit	4.55B	4.73B	4.35B	3.66B	2.89B	2.07B
EBITDA	1.88B	2.08B	2.00B	1.49B	987.28M	320.61M
Net Income	1.07B	1.21B	1.09B	1.25B	461.13M	-238.24M
Balance Sheet
Total Assets	14.53B	14.56B	13.57B	10.11B	8.86B	8.17B
Cash, Cash Equivalents and Short-Term Investments	2.64B	3.50B	2.95B	1.79B	1.27B	1.06B
Total Debt	3.27B	3.44B	3.37B	2.26B	2.84B	3.00B
Total Liabilities	5.91B	6.01B	5.96B	4.50B	4.71B	4.68B
Stockholders Equity	8.61B	8.55B	7.61B	5.61B	4.14B	3.49B
Cash Flow
Free Cash Flow	0.00	909.52M	1.04B	1.09B	268.25M	-134.69M
Operating Cash Flow	0.00	1.51B	1.59B	1.35B	571.12M	318.67M
Investing Cash Flow	0.00	-829.31M	-564.36M	-244.50M	-229.32M	-433.36M
Financing Cash Flow	0.00	-80.12M	-42.79M	-665.97M	-189.43M	-124.06M

Wakou Shokuhin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3095.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2813, the sentiment is Positive. The current price of 3095 is below the 20-day moving average (MA) of 3271.25, below the 50-day MA of 3190.40, and below the 200-day MA of 3374.86, indicating a bullish trend. The MACD of 85.94 indicates Negative momentum. The RSI at 79.79 is Negative, neither overbought nor oversold. The STOCH value of 78.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2813.

Wakou Shokuhin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3392	78 Outperform	¥13.96B	9.09	―	1.43%	10.77%	131.68%
2813	71 Outperform	¥9.85B	7.95	―	3.11%	3.42%	-10.05%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2806	61 Neutral	¥14.63B	29.84	―	1.90%	2.59%	21.25%
2904	59 Neutral	¥13.86B	34.52	―	1.61%	0.48%	-34.95%
2818	56 Neutral	¥12.36B	-179.88	―	1.38%	10.61%	-140.13%
2901	49 Neutral	¥11.38B	74.75	―	0.84%	4.28%	―