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

• Market Cap: ¥12.46B
• Dividend Yield: 1.38%
• Average Volume (3M): 4.20K
• Price to Earnings (P/E): 85.8
• Beta (1Y): 0.07
• Revenue Growth: 10.61%
• EPS Growth: -140.13%
• Country: JP
• Employees: 297
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 5.10
• Shares Outstanding: 7,062,230
• 10 Day Avg. Volume: 3,040
• 30 Day Avg. Volume: 4,203
• PEG Ratio: -4.00
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -11.83
• 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: 56 Neutral
• Price Target: ¥1,796.00 ▲(2.92% Upside)
• Action: Reiterated Date: 10/01/25
• Date: Action: Reiterated 10/01/25

Pietro Co., Ltd.'s stock score is primarily influenced by its stable financial position, despite profitability challenges and high capital expenditures. Technical analysis presents mixed signals, with slight bullish momentum but potential downward pressure. The high P/E ratio indicates overvaluation, which negatively impacts the overall score.

Positive Factors

Stable Financial Position

A stable financial position with strong equity and manageable debt levels ensures long-term financial health and operational resilience.

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Strong Brand and Market Presence

A strong brand and market presence enhance competitive advantage, allowing for sustained revenue streams and market penetration.

Negative Factors

Profitability Pressures

Declining net income and high capital expenditures can strain profitability, affecting the company's ability to generate cash and invest in growth.

Volatility in Net Profit

Volatility in net profit margins suggests challenges in cost management and revenue conversion, impacting financial predictability and investor confidence.

Negative Free Cash Flow Growth

Negative free cash flow growth due to high capital expenditures can limit financial flexibility and hinder the company's ability to fund future initiatives.

Pietro Co., Ltd. Business Overview & Revenue Model

Company Description

PIETRO Co., Ltd. manufactures and sells food products in Japan. Its products include dressings, pasta sauces and pasta, seasoning, soups, salads, breads, pizza doria, sweets drinks, frozen products, and other products. The company is also involved in the management of restaurants and fast food restaurants that primarily serve pasta dishes; and rental of office buildings, etc. As of September 30, 2020, it operated 20 directly managed stores; and 11 FC stores. The company was founded in 1980 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Pietro Co., Ltd. generates revenue through multiple streams, primarily from the sale of its branded sauces and condiments to retailers and food service operators. The company benefits from a robust distribution network that allows it to reach a wide customer base, including supermarkets, restaurants, and catering businesses. Additionally, Pietro Co. engages in strategic partnerships with food distributors and retailers to expand its market presence and increase sales volume. The company also invests in marketing initiatives to promote its products and build brand loyalty, further driving revenue growth. Seasonal promotions and product line expansions into new markets or categories contribute to its earnings, ensuring a steady flow of income.

Pietro Co., Ltd. Financial Statement Overview

Summary

Pietro Co., Ltd. has a stable financial position with a strong balance sheet and manageable debt levels. However, profitability pressures and substantial capital investments have negatively impacted free cash flow and net income, requiring improvements in profit margins to enhance overall 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.43B	11.14B	10.10B	9.11B	8.54B	8.56B
Gross Profit	5.82B	5.50B	5.13B	4.46B	4.37B	4.52B
EBITDA	635.02M	634.08M	663.00M	351.07M	740.21M	929.77M
Net Income	110.29M	57.79M	109.71M	-399.51M	165.24M	320.56M
Balance Sheet
Total Assets	14.10B	10.31B	10.62B	8.86B	9.21B	9.42B
Cash, Cash Equivalents and Short-Term Investments	3.35B	1.18B	2.57B	1.36B	1.29B	2.03B
Total Debt	5.22B	1.52B	1.58B	1.73B	1.89B	2.07B
Total Liabilities	7.85B	3.95B	4.19B	3.80B	3.67B	3.78B
Stockholders Equity	6.25B	6.36B	6.43B	5.06B	5.53B	5.64B
Cash Flow
Free Cash Flow	0.00	-1.01B	66.70M	356.82M	-262.99M	11.51M
Operating Cash Flow	0.00	449.77M	723.19M	554.75M	680.64M	632.28M
Investing Cash Flow	0.00	-1.50B	-565.74M	-207.60M	-770.25M	-565.91M
Financing Cash Flow	0.00	-340.92M	1.04B	-318.61M	-543.88M	229.63M

Pietro Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1745.00
• 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 1745 is below the 20-day moving average (MA) of 1784.80, below the 50-day MA of 1773.96, and below the 200-day MA of 1750.88, indicating a bullish trend. The MACD of 6.53 indicates Negative momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 68.08 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
2915	72 Outperform	¥34.94B	6.02	―	2.23%	-0.25%	-41.09%
2809	71 Outperform	¥590.91B	19.60	9.28%	1.30%	5.50%	27.32%
2819	68 Neutral	¥23.91B	4.38	―	1.87%	3.08%	-16.77%
2804	66 Neutral	¥24.45B	23.77	―	2.05%	0.99%	830.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2818	56 Neutral	¥12.46B	85.77	―	1.38%	10.61%	-140.13%
2910	46 Neutral	¥37.28B	21.75	―	1.65%	-1.17%	-84.81%