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Nichirei Corporation (JP:2871)
:2871
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Nichirei Corporation (2871) AI Stock Analysis

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JP:2871

Nichirei Corporation

(Frankfurt:2871)

Rating:65Neutral
Price Target:
¥2,013.00
▲(11.31%Upside)
Nichirei Corporation maintains a solid financial performance with strong revenue growth and stable profitability. However, the decline in Free Cash Flow and mixed technical indicators suggest caution. The stock's valuation is fair, supported by a reasonable dividend yield.

Nichirei Corporation (2871) vs. iShares MSCI Japan ETF (EWJ)

Nichirei Corporation Business Overview & Revenue Model

Company DescriptionNichirei Corporation engages in the processed foods, marine products, meat and poultry products, logistics, real estate, and biosciences businesses in Japan. It offers frozen foods, acerola products, packed ice, agricultural processed foods, wellness foods, and retort-pouch foods. The company also provides refrigerated warehouse, transport, delivery, and logistics consulting services, as well as produces and sells ice. In addition, it rents and manages office building space and parking lots; sells housing land; provides construction work and planning services; and engages in cell biotechnology and functional materials business. The company was formerly known as Nippon Reizo Co. Ltd. and changed its name to Nichirei Corporation in February 1985. The company was founded in 1942 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNichirei Corporation generates revenue through several key streams, primarily within its processed foods and logistics segments. The processed foods division is a major contributor, where the company produces and sells a wide range of frozen foods, including ready-to-eat meals, desserts, and health-conscious products. This segment caters to both retail and commercial customers, leveraging extensive distribution networks. The logistics segment, another significant revenue driver, provides temperature-controlled storage and transportation services, supporting both Nichirei's internal operations and external clients. Additionally, the marine and meat products divisions contribute to earnings through the supply of seafood and poultry products, respectively. Nichirei also benefits from strategic partnerships and joint ventures that expand its distribution capabilities and market reach, further bolstering its revenue streams.

Nichirei Corporation Financial Statement Overview

Summary
Nichirei Corporation shows strong revenue growth and stable profitability margins, supported by a solid balance sheet with moderate leverage. The company's robust cash flow generation is positive, but the decline in Free Cash Flow requires attention.
Income Statement
75
Positive
Nichirei Corporation demonstrates consistent revenue growth with a notable increase of 3.23% from 2024 to 2025, following a steady upward trajectory over the years. Gross Profit Margin has remained stable around 18%, and the Net Profit Margin slightly improved to 3.52% in 2025. The EBIT and EBITDA margins reflect solid operational efficiency, highlighting strong profitability despite competitive pressures in the packaged foods industry.
Balance Sheet
70
Positive
The company's balance sheet shows a moderate Debt-to-Equity Ratio of 0.41, indicating conservative use of leverage compared to equity, which is positive for financial stability. Stockholders' Equity has been increasing, contributing to a stable Equity Ratio of 52.08% in 2025, which underpins the company's strong financial footing. However, the total debt level remains high, which could pose risks if interest rates rise.
Cash Flow
68
Positive
Nichirei Corporation's cash flow statement reveals a robust Operating Cash Flow to Net Income ratio of 2.15, indicating efficient conversion of income to cash. However, Free Cash Flow decreased by 25.8% in 2025, a potential area of concern for funding future growth without increasing debt. The company's ability to maintain positive cash flows is a strength, but the decline in Free Cash Flow warrants monitoring.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue702.08B680.09B662.20B602.70B572.76B
Gross Profit126.23B120.15B108.87B102.25B98.80B
EBITDA63.26B61.13B56.47B57.09B52.23B
Net Income24.73B24.50B21.57B23.38B21.21B
Balance Sheet
Total Assets499.22B485.16B457.33B427.61B405.72B
Cash, Cash Equivalents and Short-Term Investments39.37B31.28B27.84B23.41B28.93B
Total Debt106.25B97.95B114.58B104.71B96.42B
Total Liabilities223.25B219.22B223.82B209.70B195.29B
Stockholders Equity260.04B253.41B224.44B211.17B203.32B
Cash Flow
Free Cash Flow24.87B33.50B12.77B11.95B14.80B
Operating Cash Flow53.19B62.44B37.87B34.66B45.45B
Investing Cash Flow-32.40B-31.59B-26.84B-26.02B-32.21B
Financing Cash Flow-16.80B-31.25B-8.59B-14.18B-10.71B

Nichirei Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1808.50
Price Trends
50DMA
1849.88
Negative
100DMA
1845.88
Negative
200DMA
1920.66
Negative
Market Momentum
MACD
-16.24
Negative
RSI
43.61
Neutral
STOCH
50.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2871, the sentiment is Negative. The current price of 1808.5 is below the 20-day moving average (MA) of 1824.13, below the 50-day MA of 1849.88, and below the 200-day MA of 1920.66, indicating a bearish trend. The MACD of -16.24 indicates Negative momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2871.

Nichirei Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$11.05B15.765.13%1.92%3.11%-24.90%
65
Neutral
¥457.84B18.569.55%3.40%3.23%1.35%
$2.44B17.2910.34%0.08%
€2.80B17.674.96%2.89%
€3.24B18.279.37%1.52%
72
Outperform
¥263.47B21.46
4.56%3.47%-15.46%
58
Neutral
¥290.06B50.62
2.75%2.58%-90.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2871
Nichirei Corporation
1,808.50
-86.49
-4.56%
CBCFF
CALBEE
18.52
-2.57
-12.19%
DE:NI6
NH Foods
28.40
0.37
1.32%
DE:QPJ
Kewpie Corporation
23.20
1.61
7.46%
JP:2264
Morinaga Milk Industry Co., Ltd.
3,272.00
-102.76
-3.04%
JP:2296
Itoham Yonekyu Holdings, Inc.
5,040.00
924.85
22.47%

Nichirei Corporation Corporate Events

Nichirei Completes Payment for Restricted Stock Issuance
Jul 24, 2025

Nichirei Corporation has completed the payment procedures for the issuance of new shares as restricted stock compensation, following a resolution by its Board of Directors on June 25, 2025. This issuance involves 55,225 ordinary shares at an issue price of 1,881 yen per share, totaling 103,878,225 yen, allocated to 6 directors and 4 executive officers of the company.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

Nichirei Corporation Announces New Share Issuance for Executive Incentives
Jun 25, 2025

Nichirei Corporation has announced the issuance of new shares as part of a restricted stock compensation system aimed at providing long-term incentives for its directors and executive officers. This initiative is designed to align the interests of the company’s leadership with those of its shareholders by issuing 55,225 ordinary shares to eligible directors and officers, with a 30-year transfer restriction period to ensure sustained commitment and value sharing.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen2250.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

Nichirei Corporation Sets Ambitious Growth Targets with New Business Plan
May 13, 2025

Nichirei Corporation reported record-high net sales and operating profit for FY25/3, despite falling short of previous profit expectations. The company has set a new long-term management goal, ‘N-FIT 2035,’ to enhance profitability and capital efficiency, with targets including a 10% operating profit/net sales ratio and a 40% overseas net sales ratio. Under its medium-term business plan, ‘Compass × Growth 2027,’ Nichirei plans to deepen competitive advantages, expand overseas business, and promote human capital management, aiming for a 7% operating profit/net sales ratio and a 30% overseas sales ratio.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

Nichirei Corporation Reports Strong Financial Performance and Shareholder Returns
May 13, 2025

Nichirei Corporation reported its financial results for the fiscal year ending March 31, 2025, showing an increase in net sales and operating profit compared to the previous year. The company also executed a 2-for-1 share split and adjusted its accounting policies, which had no impact on its financial statements. The dividend per share increased significantly, reflecting a strong return to shareholders. Looking ahead, Nichirei forecasts stable sales and improved profitability for the next fiscal year, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

Nichirei Corporation Reports Significant Financial Growth
May 13, 2025

Nichirei Corporation reported a notable increase in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced a 16.9% rise in net sales and a 10.9% increase in net income, attributed to enhanced group management revenue, indicating a positive impact on its operational performance and market positioning.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

Nichirei Corporation Announces Subsidiary Merger to Enhance Profitability
May 13, 2025

Nichirei Corporation announced a merger of its subsidiaries, Nichirei Foods and Nichirei Fresh, with Nichirei Foods as the surviving entity. This strategic move, effective April 1, 2026, aims to integrate procurement to sales functions, including overseas operations, to better address diversifying customer needs and complex social issues, ultimately strengthening profitability and improving capital efficiency.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

Nichirei Corporation Announces Progressive Dividend System
May 13, 2025

Nichirei Corporation has announced a change in its dividend standards, implementing a progressive dividend system with a minimum consolidated dividend on equity ratio of 4.0%, effective from the fiscal year ending March 31, 2026. This move reflects the company’s commitment to enhancing shareholder value and is expected to impact its financial strategy and stakeholder returns positively.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

Nichirei Corporation Unveils ‘Compass × Growth 2027’ Plan to Boost Profitability and Global Expansion
May 13, 2025

Nichirei Corporation has announced its new medium-term business plan, ‘Compass × Growth 2027,’ which aims to strengthen profitability and improve capital efficiency from FY2026 to FY2028. Building on the success of its previous plan, the company will focus on deepening competitive advantages, expanding overseas operations, and promoting human capital management. The plan is designed to enhance Nichirei’s social and economic value and align with its long-term goal, N-FIT 2035, positioning the company as an indispensable presence in society.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

Nichirei Corporation Unveils Long-term Strategy ‘N-FIT 2035’
May 13, 2025

Nichirei Corporation has announced its new long-term management goal, ‘N-FIT 2035’, aiming to strengthen its competitive advantages and enhance profitability and capital efficiency. This strategic plan is set against the backdrop of evolving global market demands, particularly the increasing need for frozen foods and logistics solutions. The company targets an operating margin of 10% and a 40% overseas sales ratio by 2035, with a focus on expanding its global business and reducing environmental impact.

The most recent analyst rating on (JP:2871) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Nichirei Corporation stock, see the JP:2871 Stock Forecast page.

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.Date of analysis: Jul 03, 2025