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

• Market Cap: ¥10.64B
• Dividend Yield: 3.11%
• Average Volume (3M): 4.04K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.74
• 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: ¥4,376.00 ▲(41.39% 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

Sustained Revenue Growth

The multi-year revenue increase from ¥11bn to ¥16.2bn demonstrates durable demand and expanding market penetration in packaged foods. Sustained top-line growth supports longer-term scale benefits, capacity utilization and the ability to fund reinvestment without relying on volatile financing.

Improving Profitability Margins

Consistent improvement in gross and net margins indicates structural cost management, better product mix, or pricing power. Improved margins provide durable buffer for cyclical shocks, enhance free cash flow potential and support reinvestment or dividend consistency over the next several quarters.

Stronger Balance Sheet & ROE

Lower leverage and a rising ROE reflect prudent capital allocation and strengthened solvency, giving management flexibility for capex, acquisitions, or dividends. A healthier capital structure also reduces refinancing risk and supports durable credit standing in a changing macro environment.

Negative Factors

Modest EBIT Margin

An EBIT margin below peer premium levels suggests operating efficiency or scale limitations. If structural cost pressures or low operating leverage persist, the company may have constrained earnings power despite revenue growth, which could limit long-term cash available for strategic initiatives.

Negative EPS Trend

A negative EPS growth metric signals that earnings per share have declined, which can reflect dilution, margin pressure, or uneven profit conversion. Persisting EPS contraction undermines per-share returns and complicates long-term shareholder value assessment despite rising revenues.

Limited Investor Disclosure / Events

Sparse public disclosure and an absence of corporate events reduce visibility into strategy, guidance and execution. That limited transparency makes it harder to assess management's plans and the sustainability of recent improvements, increasing uncertainty for medium-term forecasting.

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	4.55B	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: 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 3765.25, below the 50-day MA of 3425.30, and below the 200-day MA of 3363.41, indicating a bullish trend. The MACD of 181.53 indicates Negative momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 63.61 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	¥10.64B	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	¥14.92B	358.43	―	1.90%	2.59%	21.25%
2904	59 Neutral	¥13.97B	4.68	―	1.61%	0.48%	-34.95%
2818	56 Neutral	¥12.50B	85.77	―	1.38%	10.61%	-140.13%
2901	49 Neutral	¥10.33B	-8,155.86	―	0.84%	4.28%	―