Pietro Co., Ltd. (2818) AI Stock Analysis

• Market Cap: ¥12.26B
• Dividend Yield: 1.36%
• Average Volume (3M): 2.95K
• Price to Earnings (P/E): 110.3
• Beta (1Y): 0.09
• Revenue Growth: 10.84%
• EPS Growth: -18.43%
• Country: JP
• Employees: 297
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Packaged Foods
• EPS (TTM): 9.75
• Shares Outstanding: 7,062,230
• 10 Day Avg. Volume: 3,830
• 30 Day Avg. Volume: 2,946
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,838.00
• Price Target Upside: 4.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥1,838.00 ▲(4.14% Upside)

The overall stock score for Pietro Co., Ltd. is driven primarily by its stable financial position and manageable leverage. Positive technical indicators add to the score, although the high P/E ratio raises concerns about overvaluation. Improving profitability and free cash flow generation are key to enhancing the company’s financial health and sustaining growth.

Pietro Co., Ltd. Business Overview & Revenue Model

Company Description

Pietro Co., Ltd. is a Japanese company primarily engaged in the production and sale of food products. The company is renowned for its diverse range of dressings and sauces, catering to both household and commercial markets. Additionally, Pietro Co., Ltd. operates restaurants, further solidifying its presence in the food and beverage sector. With a commitment to quality and innovation, the company continues to expand its product offerings and market reach.

How the Company Makes Money

Pietro Co., Ltd. generates revenue through the manufacturing and sale of its signature dressings and sauces, which are distributed to supermarkets, specialty stores, and food service providers. The company also operates a chain of restaurants, contributing to its earnings through dining services. The diverse product line and established brand reputation help maintain strong sales domestically and internationally. Strategic partnerships with retailers and distributors further enhance its market presence and revenue streams.

Pietro Co., Ltd. Financial Statement Overview

Summary

Pietro Co., Ltd. exhibits a stable financial position with strong equity and manageable debt levels. However, profitability pressures are evident, with declining net income and significant capital expenditures impacting free cash flow. The income statement shows robust gross profit margins but volatility in net profit. Overall, enhancing profit margins is essential to improve financial health.

Income Statement

Pietro Co., Ltd. shows a mixed performance on its income statement. The gross profit margin remains robust, reflecting efficient cost management. However, the net profit margin has deteriorated significantly over the recent period, indicating challenges in converting revenue into profit. The revenue growth rate has been positive over the longer term, but recent declines in net income suggest pressure on profitability. Margins like EBIT and EBITDA have fluctuated, pointing to volatility in operating performance.

Balance Sheet

The balance sheet of Pietro Co., Ltd. is relatively strong, with a solid equity base as indicated by a healthy equity ratio. The debt-to-equity ratio is manageable, suggesting prudent leverage levels. Return on equity has been impacted by declining net income, but the company's asset base remains stable. Overall, the balance sheet reflects financial stability, though improvements in profitability would enhance returns.

Cash Flow

Cash flow analysis reveals some concerns for Pietro Co., Ltd. The company has experienced negative free cash flow growth, driven by significant capital expenditures. The operating cash flow to net income ratio indicates that operating cash flow supports earnings, yet the free cash flow to net income ratio is less favorable. While operational cash generation is positive, the high capital investment has strained cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.13B	11.14B	10.10B	9.11B	8.54B	9.87B
Gross Profit	5.70B	5.50B	5.32B	4.64B	4.53B	5.87B
EBITDA	610.06M	610.06M	628.45M	39.09M	710.84M	858.92M
Net Income	58.38M	57.79M	109.71M	-399.51M	165.24M	320.56M
Balance Sheet
Total Assets	10.27B	10.27B	10.58B	8.83B	9.18B	9.40B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.12B	2.48B	1.36B	1.29B	2.03B
Total Debt	1.46B	1.46B	1.55B	1.69B	1.84B	2.05B
Total Liabilities	3.91B	3.91B	4.15B	3.77B	3.65B	3.76B
Stockholders Equity	6.36B	6.36B	6.43B	5.06B	5.53B	5.64B
Cash Flow
Free Cash Flow	0.00	-1.01B	66.24M	345.34M	-282.78M	16.66M
Operating Cash Flow	0.00	449.77M	729.90M	560.73M	687.52M	639.65M
Investing Cash Flow	0.00	-1.50B	-565.14M	-206.63M	-769.69M	-565.47M
Financing Cash Flow	0.00	-350.00M	1.03B	-325.56M	-551.32M	221.83M

Pietro Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1765.00
• 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:2818, the sentiment is Positive. The current price of 1765 is above the 20-day moving average (MA) of 1749.65, above the 50-day MA of 1741.88, and above the 200-day MA of 1735.54, indicating a bullish trend. The MACD of 6.80 indicates Negative momentum. The RSI at 61.47 is Neutral, neither overbought nor oversold. The STOCH value of 51.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2818.

Pietro Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2814	75 Outperform	¥18.62B	17.09		1.29%	6.74%	-10.71%
2805	75 Outperform	¥88.89B	11.74		1.62%	-0.76%	-8.38%
2804	71 Outperform	¥28.66B	11.76		1.64%	1.31%	10549.54%
2819	67 Neutral	¥23.93B	24.59		1.75%	3.96%	-42.78%
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
2818	61 Neutral	¥12.26B	110.34		1.36%	10.84%	-18.43%
2806	61 Neutral	¥14.24B	24.13		1.95%	2.80%	28.76%