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Nichirei Corporation
(2871)
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Rating:63Neutral
Price Target:
¥2,460.00
▲(19.94% Upside)
Action:Reiterated
Date:07/16/26
Overall score reflects solid fundamentals (steady growth, stable margins, moderate leverage) tempered by weaker cash-flow consistency and a technically mixed chart with the stock trading below key short-to-medium-term moving averages. Valuation is reasonable with a moderate P/E and supportive dividend yield.
Positive Factors
Integrated business model
Nichirei’s combined frozen-food manufacturing and temperature-controlled logistics create durable vertical integration. Controlling production, warehousing and transport boosts quality control, cost synergies, recurring fee income from third-party logistics and customer stickiness, supporting long-term resilience.
Negative Factors
Volatile free cash flow
Volatility in free cash flow reduces predictability for dividends, reinvestment and debt paydown. Working-capital swings and reinvestment needs can pressure cash conversion in periods, complicating capital allocation and weakening ability to consistently fund growth or absorb shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated business model
Nichirei’s combined frozen-food manufacturing and temperature-controlled logistics create durable vertical integration. Controlling production, warehousing and transport boosts quality control, cost synergies, recurring fee income from third-party logistics and customer stickiness, supporting long-term resilience.
Read all positive factors
Nichirei Corporation (2871) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥558.68B
Dividend Yield2.13%
Average Volume (3M)1.21M
Price to Earnings (P/E)20.2
Beta (1Y)0.05
Revenue Growth2.00%
EPS Growth12.21%
CountryJP
Employees17,763
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)109.06
Shares Outstanding257,036,040
10 Day Avg. Volume920,980
30 Day Avg. Volume1,207,673
Financial Highlights & Ratios
PEG Ratio1.50
Price to Book (P/B)1.72
Price to Sales (P/S)0.69
P/FCF Ratio26.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,350.00Price Target Upside14.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)106.06
Revenue Forecast (FY)¥635.06B
Nichirei Corporation Business Overview & Revenue Model
Company Description
Operating primarily within Japan, Nichirei Corporation is a diversified conglomerate with interests spanning several key sectors: food processing, seafood, meat and poultry, supply chain management, property development, and biosciences. Its exten...
How the Company Makes Money
Nichirei makes money primarily by selling food products and providing related logistics services through its consolidated group. Key revenue streams include: (1) Processed and frozen foods sales: The company generates revenue by developing, manufa...
Nichirei Corporation Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 716.14B | 702.08B | 680.09B | 662.20B | 602.70B |
| Gross Profit | 129.22B | 126.23B | 120.15B | 108.87B | 102.25B |
| EBITDA | 64.98B | 63.97B | 62.87B | 56.47B | 57.09B |
| Net Income | 27.33B | 24.73B | 24.50B | 21.57B | 23.38B |
Balance Sheet | |||||
| Total Assets | 557.24B | 504.46B | 489.72B | 461.36B | 431.77B |
| Cash, Cash Equivalents and Short-Term Investments | 52.11B | 39.37B | 31.28B | 27.84B | 23.41B |
| Total Debt | 124.75B | 106.25B | 97.95B | 114.58B | 104.71B |
| Total Liabilities | 252.80B | 228.49B | 223.77B | 227.84B | 213.87B |
| Stockholders Equity | 286.35B | 260.04B | 253.41B | 224.44B | 211.17B |
Cash Flow | |||||
| Free Cash Flow | 18.55B | 24.87B | 35.72B | 14.04B | 13.37B |
| Operating Cash Flow | 48.75B | 53.19B | 62.44B | 37.87B | 34.66B |
| Investing Cash Flow | -29.94B | -32.40B | -31.41B | -26.84B | -26.02B |
| Financing Cash Flow | -6.34B | -16.80B | -31.43B | -8.59B | -14.18B |
Nichirei Corporation Technical Analysis
Positive
2051.00
Price Trends
2089.11
Positive
2003.19
Positive
1940.76
Positive
Market Momentum
28.61
Positive
47.86
Neutral
20.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2871, the sentiment is Positive. The current price of 2051 is below the 20-day moving average (MA) of 2158.55, below the 50-day MA of 2089.11, and above the 200-day MA of 1940.76, indicating a neutral trend. The MACD of 28.61 indicates Positive momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 20.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2871.
Nichirei Corporation Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥680.47B | 15.76 | 9.43% | 1.42% | 4.70% | 12.93% | |
69 Neutral | ¥851.05B | 18.33 | 9.25% | 2.42% | 1.49% | -14.60% | |
67 Neutral | ¥4.65T | 35.88 | 18.38% | 0.94% | 3.47% | 100.13% | |
65 Neutral | ¥383.74B | 13.98 | 9.75% | 2.56% | 5.09% | 10.48% | |
63 Neutral | ¥558.68B | 20.20 | 10.08% | 2.58% | 2.00% | 12.21% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | ¥584.64B | 17.31 | 6.59% | 2.04% | 6.34% | 37.80% |
* Consumer Defensive Sector Average
JP:2871
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Nichirei Corporation Corporate Events
Nichirei Completes Restricted Stock Issuance for Executive Compensation
Jul 23, 2026
Nichirei Corporation has completed payment procedures for the issuance of 51,084 new ordinary shares as restricted stock compensation, following a Board resolution on June 24, 2026. The total value of the issuance is approximately ¥107.5 mill...
Nichirei Moves to Restore Operations After Cyberattack-Induced System Failures
Jul 22, 2026
Nichirei Corporation has reported progress in responding to a recent cyberattack that caused system failures across parts of the group. The company, a major frozen food and cold storage logistics operator, is working with an external cybersecurity...
Nichirei Probes Cyberattack That Disrupts Logistics and Frozen Food Operations
Jul 16, 2026
Nichirei Corporation has disclosed that a system failure reported on July 13, 2026, was caused by a cyberattack targeting its servers, prompting the company to activate an emergency response headquarters and work with external cybersecurity specia...
Nichirei Aligns Shareholder Benefit Record Date with New Fiscal Year-End
Jun 24, 2026
Nichirei Corporation will change the record date for its shareholder benefits program to align with a shift in its fiscal year-end from March 31 to December 31. Shareholders eligible for benefits will now be those holding at least 500 shares as of...
Nichirei Issues Restricted Stock to Align Management with Long-Term Shareholder Value
Jun 24, 2026
Nichirei Corporation has approved the issuance of 51,084 new ordinary shares as restricted stock compensation for six internal directors and five executive officers, with a total value of about ¥107 million at an issue price of ¥2,104 pe...
Nichirei to Raise Director Pay Caps and Expand Stock Compensation Plan
May 19, 2026
Nichirei Corporation has approved a comprehensive revision of its director remuneration framework, seeking shareholder approval to raise caps on basic pay, performance-linked bonuses and stock-based compensation. The move reflects a larger corpora...
Nichirei to Shift Fiscal Year-End to December to Align Global Operations
May 19, 2026
Nichirei Corporation plans to shift its fiscal year to run from January 1 to December 31, unifying the year-end across the parent company and its consolidated subsidiaries to support a more globally aligned management structure. The company says t...
Nichirei Lowers 2027 Financial Targets Amid Cost Pressures and Inflation
May 12, 2026
Nichirei Corporation has revised the financial targets for the final year of its medium-term business plan, “Compass × Growth 2027,” after concluding that initial goals will take longer to achieve amid higher-than-expected raw mat...
Nichirei Lifts Profit Outlook on Asset Sales but Trims Operating Targets
May 12, 2026
Nichirei reported higher net sales for FY2025 and operating profit roughly in line with the previous year, while profit attributable to owners of parent reached a record high, aided by the sale of cross-shareholdings. The company outlined FY2026 p...
Nichirei Lifts Earnings and Cash, Alters Fiscal Year and Depreciation Policy
May 12, 2026
Nichirei Corporation reported steady growth for the year ended March 31, 2026, with net sales rising to ¥716.1 billion and profit attributable to owners of the parent increasing to ¥27.3 billion. Margins remained solid, return on equity ...
Nichirei to Acquire Indonesian Cold Chain Operators to Boost ASEAN Logistics Network
Apr 30, 2026
Nichirei Corporation’s logistics arm, Nichirei Logistics Group Inc., will acquire Indonesian cold chain operators PT Mega Indo Logistik and PT Mega Internasional Sejahtera, making them consolidated subsidiaries. The deal, executed through a ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.