Ebara Foods Industry, Inc. (2819) AI Stock Analysis

• Market Cap: ¥23.92B
• Dividend Yield: 1.75%
• Average Volume (3M): 5.10K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.43
• Revenue Growth: 3.96%
• EPS Growth: -42.78%
• Country: JP
• Employees: 839
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 16.69
• Shares Outstanding: 9,868,626
• 10 Day Avg. Volume: 4,270
• 30 Day Avg. Volume: 5,103
• 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: ¥2,787.00
• Price Target Upside: 8.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥2,787.00 ▲(8.15% Upside)

Ebara Foods Industry, Inc. shows strong financial stability with robust revenue growth and low leverage, which are significant strengths. However, the stock's valuation appears high, and profitability margins are modest, which are key risks. Technical indicators suggest neutral momentum, with potential for upward movement.

Positive Factors

Revenue Growth

The impressive revenue growth rate indicates robust sales performance and suggests that the company is effectively expanding its market presence, which is crucial for long-term success in the competitive food industry.

Balance Sheet Health

A low debt-to-equity ratio signifies minimal leverage, reducing financial risk and providing the company with greater flexibility to invest in growth opportunities or weather economic downturns.

Cash Generation

Strong free cash flow growth enhances the company's ability to reinvest in its business, pay down debt, or return capital to shareholders, supporting long-term financial stability and growth.

Negative Factors

Profitability Margins

Low profitability margins suggest challenges in cost management or pricing strategies, which could impact the company's ability to sustain earnings growth and compete effectively in the market.

Cash Flow Conversion

A low cash flow conversion ratio indicates that not all earnings are being converted into cash, which may constrain the company's ability to fund operations and growth initiatives without relying on external financing.

Operational Efficiency

Modest EBIT and EBITDA margins suggest operational inefficiencies that could hinder profitability improvements and limit the company's competitive edge in the long term.

Ebara Foods Industry, Inc. Business Overview & Revenue Model

Company Description

Ebara Foods Industry, Inc. is a Japanese company primarily engaged in the production and sale of food products. The company operates within the food manufacturing sector, focusing on seasoning products, sauces, and condiments. Ebara Foods Industry is known for its high-quality products that cater to both domestic and international markets, emphasizing traditional Japanese flavors with a modern twist.

How the Company Makes Money

Ebara Foods Industry, Inc. generates revenue through the manufacturing and distribution of a variety of food products, including sauces, seasonings, and condiments. The company's key revenue streams include the sale of these products to both retail and commercial customers. Ebara Foods Industry also engages in partnerships and collaborations with other food companies to expand its market reach and product offerings. Additionally, the company invests in marketing and innovation to maintain its competitive edge and adapt to changing consumer preferences, which also contributes to its earnings.

Ebara Foods Industry, Inc. Financial Statement Overview

Summary

Ebara Foods Industry, Inc. demonstrates strong revenue growth and a solid balance sheet with low leverage. While cash flow generation has improved significantly, profitability margins remain an area for enhancement. The company is well-positioned in terms of financial stability, but optimizing operational efficiency could further strengthen its financial performance.

Income Statement

Ebara Foods Industry, Inc. shows a strong revenue growth rate of 27.3% in the TTM, indicating robust sales performance. However, the net profit margin is relatively low at 2.92%, suggesting room for improvement in cost management or pricing strategies. The gross profit margin is healthy at 34.45%, but EBIT and EBITDA margins are modest, reflecting potential inefficiencies in operations.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.0148, indicating minimal leverage and financial risk. The return on equity is moderate at 4.12%, suggesting efficient use of equity capital. The equity ratio is solid, reflecting a stable financial structure with a significant portion of assets funded by equity.

Cash Flow

Ebara Foods Industry, Inc. exhibits a significant free cash flow growth rate of 198% in the TTM, highlighting improved cash generation capabilities. However, the operating cash flow to net income ratio is below 1, indicating that not all earnings are being converted into cash. The free cash flow to net income ratio is also low, suggesting potential challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.09B	47.96B	45.22B	43.42B	43.34B	51.33B
Gross Profit	16.44B	16.52B	16.36B	16.42B	16.66B	24.37B
EBITDA	3.16B	3.60B	3.71B	4.24B	4.84B	4.69B
Net Income	1.02B	1.40B	1.80B	2.18B	2.70B	2.51B
Balance Sheet
Total Assets	47.98B	47.37B	47.95B	43.15B	41.30B	40.32B
Cash, Cash Equivalents and Short-Term Investments	15.72B	15.82B	15.23B	18.50B	16.75B	16.29B
Total Debt	616.00M	506.00M	602.00M	0.00	0.00	0.00
Total Liabilities	13.67B	13.15B	15.13B	12.22B	12.22B	13.26B
Stockholders Equity	34.31B	34.22B	32.82B	30.93B	29.08B	27.06B
Cash Flow
Free Cash Flow	3.27B	1.14B	-2.66B	1.19B	1.76B	4.01B
Operating Cash Flow	5.61B	4.53B	767.00M	2.81B	3.33B	4.74B
Investing Cash Flow	-2.08B	-3.34B	-3.64B	-1.32B	-1.44B	-870.00M
Financing Cash Flow	-506.00M	-645.00M	-468.00M	265.00M	-1.69B	-1.23B

Ebara Foods Industry, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2577.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2819, the sentiment is Positive. The current price of 2577 is above the 20-day moving average (MA) of 2571.95, above the 50-day MA of 2553.54, and below the 200-day MA of 2690.65, indicating a neutral trend. The MACD of 2.89 indicates Positive momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2819.

Ebara Foods Industry, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2884	72 Outperform	¥21.99B	14.42		―	10.00%	21.02%
2804	71 Outperform	¥28.54B	11.73		1.65%	1.31%	10549.54%
2933	70 Neutral	¥27.17B	11.30		1.68%	4.32%	-27.62%
2819	67 Neutral	¥23.92B	24.50		1.75%	3.96%	-42.78%
2266	65 Neutral	¥24.65B	73.06		1.58%	-3.66%	-77.47%
Sector *	62 Neutral	$20.51B	14.76	-3.31%	3.19%	1.94%	-10.37%
2922	62 Neutral	¥25.27B	26.02		1.19%	2.58%	-35.52%