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

• Market Cap: ¥25.61B
• Dividend Yield: 1.87%
• Average Volume (3M): 5.59K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.44
• Revenue Growth: 3.08%
• EPS Growth: -16.77%
• Country: JP
• Employees: 839
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 143.23
• Shares Outstanding: 9,868,626
• 10 Day Avg. Volume: 5,940
• 30 Day Avg. Volume: 5,586
• PEG Ratio: -0.88
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 23.91
• 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: 68 Neutral
• Price Target: ¥2,955.00 ▲(17.68% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

Overall score is driven primarily by a strong, low-debt balance sheet, but held back by margin compression and volatile/free-cash-flow weakness. Technicals are constructive with the price above key moving averages, though overbought signals add near-term risk. Valuation is reasonable with a moderate P/E and a modest dividend yield.

Positive Factors

Balance Sheet Strength

Extremely low leverage and steadily growing equity provide durable financial flexibility. This conservative capital structure supports investment, absorbs shocks to margins or demand, and enables sustained operations, capital spending, or shareholder returns without refinancing pressure.

Branded Products & Distribution

A portfolio of branded sauces and seasonings sold across retail and foodservice creates recurring demand and diversified revenue streams. Established shelf presence and multiple channels reduce customer concentration risk and underpin steady volume even during category shifts.

Margin Base — Stable Gross Margin

Stable gross margins indicate the core manufacturing and pricing structure remains intact, supporting long-term profitability. Even with compressed operating margins, maintaining gross margin suggests cost of goods and product economics remain resilient versus peers.

Negative Factors

Operating & Net Margin Compression

Sustained compression in operating and net margins erodes earnings power and limits capacity to fund growth or returns. If driven by input-cost inflation or lost pricing power, margin pressure could persist and require structural changes to product mix or cost base to restore prior profitability.

Volatile Free Cash Flow

Inconsistent and sometimes negative free cash flow reduces financial optionality and weakens the link between accounting profits and available capital for dividends, debt paydown, or reinvestment. Ongoing FCF volatility signals working-capital swings or heavy reinvestment needs that impair cash conversion.

Uneven Revenue Trajectory

An inconsistent topline undermines forecastability and scale benefits. Historical drops indicate exposure to demand variability or competitive pressures; without a clear, stable growth trend, capacity planning and margin recovery become harder to sustain over multiple quarters.

Ebara Foods Industry, Inc. Business Overview & Revenue Model

Company Description

Ebara Foods Industry,Inc. produces and sells food condiments in Japan. It offers meat, hot pot, vegetable, and Japanese seasonings; ramen noodle soups; and curry powders. The company was founded in 1958 and is headquartered in Yokohama, Japan.

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

Balance sheet strength (very low leverage and steadily growing equity) supports a higher score, but this is offset by compressed operating/net margins versus 2021–2023 and inconsistent cash generation, including volatile and recently weaker free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue is modestly higher versus the latest annual period, but the longer-term sales trajectory has been uneven (including a notable drop in 2022). Profitability remains positive, with stable gross margin, but operating and net margins have compressed versus 2021–2023 levels, indicating reduced pricing power and/or higher cost pressure. Net income is still solidly positive, though below prior peak years.

Balance Sheet

The balance sheet is a clear strength: leverage is extremely low, with debt-to-equity near zero across periods and very limited total debt in the most recent filings. Equity has steadily grown over time, supporting a strong capital base. Returns on equity are positive but have moderated recently versus prior years, suggesting profitability has cooled even as the balance sheet remains conservatively positioned.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in TTM (Trailing-Twelve-Months), but free cash flow is relatively low versus net income and has been volatile year-to-year, including a large negative free cash flow in 2024 and a sharp decline in TTM versus the latest annual period. This points to heavier reinvestment needs and/or working-capital swings that reduce consistency of shareholder cash returns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	49.32B	47.96B	45.22B	43.42B	43.34B	51.33B
Gross Profit	16.91B	16.52B	16.36B	16.42B	16.66B	24.37B
EBITDA	4.41B	3.60B	3.71B	4.24B	4.84B	4.69B
Net Income	1.72B	1.40B	1.80B	2.18B	2.70B	2.51B
Balance Sheet
Total Assets	52.95B	47.37B	47.95B	43.15B	41.30B	40.32B
Cash, Cash Equivalents and Short-Term Investments	11.99B	15.82B	15.23B	18.50B	16.75B	16.29B
Total Debt	568.00M	506.00M	602.00M	0.00	0.00	0.00
Total Liabilities	16.65B	13.15B	15.13B	12.22B	12.22B	13.26B
Stockholders Equity	36.30B	34.22B	32.82B	30.93B	29.08B	27.06B
Cash Flow
Free Cash Flow	541.00M	1.14B	-2.66B	1.19B	1.76B	4.01B
Operating Cash Flow	3.56B	4.53B	767.00M	2.81B	3.33B	4.74B
Investing Cash Flow	-2.49B	-3.34B	-3.64B	-1.32B	-1.44B	-870.00M
Financing Cash Flow	-653.00M	-645.00M	-468.00M	265.00M	-1.69B	-1.23B

Ebara Foods Industry, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2511.00
• 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:2819, the sentiment is Positive. The current price of 2511 is below the 20-day moving average (MA) of 2719.65, below the 50-day MA of 2616.48, and below the 200-day MA of 2546.21, indicating a bullish trend. The MACD of 29.30 indicates Positive momentum. The RSI at 62.92 is Neutral, neither overbought nor oversold. The STOCH value of 29.69 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
2805	73 Outperform	¥120.21B	14.22	―	1.08%	0.48%	-4.27%
2915	72 Outperform	¥37.66B	12.92	―	2.23%	-0.25%	-41.09%
2809	71 Outperform	¥622.46B	20.30	9.28%	1.30%	5.50%	27.32%
2819	68 Neutral	¥25.61B	15.65	―	1.87%	3.08%	-16.77%
2804	66 Neutral	¥24.61B	10.14	―	2.05%	0.99%	830.67%
2811	63 Neutral	¥249.65B	17.96	―	2.11%	3.69%	-50.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%