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

• Market Cap: ¥10.61B
• Dividend Yield: 3.11%
• Average Volume (3M): 4.04K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.73
• 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: ¥4,310.00 ▲(39.26% 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

Sustained revenue growth from ¥11bn to ¥16.2bn over five years reflects expanding product demand and distribution reach. This durable top-line expansion supports scale economies, higher operating leverage potential, and recurring cash generation that can fund reinvestment, dividends, or deleveraging.

Gross Profit Margin Expansion

A steady rise in gross margin to 28.5% indicates lasting improvements in cost structure or product mix. Higher gross margins provide a structural buffer against input cost volatility, support stronger net margins over time, and enable sustainable reinvestment in marketing or product development.

Improving Balance Sheet & ROE

Material deleveraging and a 14.1% ROE reflect disciplined capital allocation and stronger equity returns. Lower leverage improves financial flexibility for capex, acquisitions, or shareholder distributions, while healthy ROE signals effective use of equity capital over the medium term.

Negative Factors

Modest EBIT Margin

An EBIT margin below 10% constrains capacity to absorb cost shocks, invest in growth initiatives, or sustainably expand operating margins. If structural (product mix, pricing power), it limits free cash flow expansion pace and reduces resilience versus higher‑margin competitors over the medium term.

Negative EPS Growth

Negative EPS growth indicates earnings per share have declined, which can reflect margin pressure, share count effects, or one‑off items. Persistent EPS contraction undermines retained earnings accumulation, limits dividend growth capacity, and may signal structural profitability volatility.

Limited Scale

A small workforce and company scale can limit bargaining power with suppliers and customers, constrain national distribution and R&D capacity, and raise per‑unit fixed costs. Limited scale can impede rapid expansion and make it harder to compete with larger packaged‑food incumbents 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

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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	4.64B	4.63B	4.25B	3.54B	2.78B	1.96B
EBITDA	1.90B	2.06B	1.94B	1.43B	942.31M	249.51M
Net Income	1.08B	1.21B	1.09B	1.25B	461.13M	-238.24M
Balance Sheet
Total Assets	14.53B	14.56B	13.57B	10.18B	8.89B	8.21B
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	4.58B	4.75B	4.71B
Stockholders Equity	8.61B	8.55B	7.61B	5.61B	4.14B	3.49B
Cash Flow
Free Cash Flow	0.00	909.52M	1.06B	1.10B	276.62M	-81.24M
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: Positive
• RSI: Neutral
• 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 3865.50, below the 50-day MA of 3486.10, and below the 200-day MA of 3365.88, indicating a bullish trend. The MACD of 141.73 indicates Positive momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 46.80 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	¥15.95B	12.33	―	1.43%	10.77%	131.68%
2813	71 Outperform	¥10.61B	4.17	―	3.11%	3.42%	-10.05%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2806	61 Neutral	¥14.81B	358.43	―	1.90%	2.59%	21.25%
2904	59 Neutral	¥14.01B	4.68	―	1.61%	0.48%	-34.95%
2818	56 Neutral	¥12.46B	85.77	―	1.38%	10.61%	-140.13%
2901	49 Neutral	¥10.30B	-8,155.86	―	0.84%	4.28%	―