Nichirei Corporation (2871) AI Stock Analysis

• Market Cap: ¥482.27B
• Dividend Yield: 2.55%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.14
• Revenue Growth: 1.08%
• EPS Growth: 2.71%
• Country: JP
• Employees: 16,385
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 33.93
• Shares Outstanding: 256,984,950
• 10 Day Avg. Volume: 959,730
• 30 Day Avg. Volume: 1,247,516
• PEG Ratio: 0.18
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 18.16
• 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): 106.67
• Revenue Forecast (FY): ¥692.00B

• Rating: 72 Outperform
• Price Target: ¥1,997.00 ▲(12.41% Upside)

Nichirei Corporation's stock is supported by strong financial performance and positive technical indicators. The company's stable revenue growth and solid balance sheet are significant strengths. While the valuation is fair, the decline in Free Cash Flow is a concern that should be monitored.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A conservative leverage approach and strong equity position enhance financial stability, providing resilience against economic fluctuations.

Operational Efficiency

Strong operational efficiency indicates effective cost management and competitive positioning, supporting sustained profitability.

Negative Factors

Decline in Free Cash Flow

A decline in Free Cash Flow could limit the company's ability to fund growth initiatives and increase reliance on external financing.

Earnings Decline

A decline in earnings growth may signal challenges in maintaining profitability, potentially impacting investor confidence and future growth.

High Total Debt

High debt levels can increase financial risk, especially in a rising interest rate environment, potentially straining cash flows.

Nichirei Corporation Business Overview & Revenue Model

Company Description

Nichirei Corporation (2871) is a leading Japanese food and logistics company, primarily engaged in the production and distribution of frozen foods, processed food products, and logistics services. The company operates through several business segments, including food processing, logistics, and bioscience, offering a wide range of products such as frozen vegetables, seafood, meat products, and ready-to-eat meals. Nichirei aims to enhance food safety and quality while catering to the evolving dietary needs of consumers.

How the Company Makes Money

Nichirei Corporation generates revenue through multiple key streams, primarily from the sale of its food products, which include frozen and processed foods. The food processing segment is a significant source of income, driven by both domestic and international sales. Additionally, the logistics segment contributes to the company's earnings by providing temperature-controlled distribution services, essential for the efficient delivery of perishable goods. Nichirei also benefits from strategic partnerships with food retailers, restaurants, and other businesses, which enhance its market reach and distribution capabilities. The company's focus on innovation and quality assurance further strengthens its competitive position and drives customer loyalty, contributing to stable revenue growth.

Nichirei Corporation Financial Statement Overview

Summary

Nichirei Corporation shows consistent revenue growth and stable profitability margins. The balance sheet indicates moderate leverage with a conservative Debt-to-Equity Ratio, supporting financial stability. However, the decline in Free Cash Flow is a concern that needs monitoring.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	701.69B	702.08B	680.09B	662.20B	602.70B	572.76B
Gross Profit	126.73B	126.23B	120.15B	108.87B	102.25B	98.80B
EBITDA	47.67B	63.26B	62.27B	56.47B	57.09B	52.23B
Net Income	23.93B	24.73B	24.50B	21.57B	23.38B	21.21B
Balance Sheet
Total Assets	502.60B	499.22B	485.16B	457.33B	427.61B	405.72B
Cash, Cash Equivalents and Short-Term Investments	39.17B	39.37B	31.28B	27.84B	23.41B	28.93B
Total Debt	111.75B	109.82B	97.95B	114.58B	104.71B	96.42B
Total Liabilities	230.02B	223.25B	219.22B	223.82B	209.70B	195.29B
Stockholders Equity	256.85B	260.04B	253.41B	224.44B	211.17B	203.32B
Cash Flow
Free Cash Flow	0.00	24.87B	33.50B	12.77B	11.95B	14.80B
Operating Cash Flow	0.00	53.19B	62.44B	37.87B	34.66B	45.45B
Investing Cash Flow	0.00	-32.40B	-31.59B	-26.84B	-26.02B	-32.21B
Financing Cash Flow	0.00	-16.80B	-31.25B	-8.59B	-14.18B	-10.71B

Nichirei Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1776.50
• 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:2871, the sentiment is Positive. The current price of 1776.5 is below the 20-day moving average (MA) of 1892.35, below the 50-day MA of 1843.73, and below the 200-day MA of 1800.88, indicating a bullish trend. The MACD of 10.69 indicates Positive momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 73.15 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2809	74 Outperform	¥612.04B	22.00	9.28%	1.31%	5.50%	27.32%
2871	72 Outperform	¥482.27B	18.42	9.86%	2.55%	1.08%	2.71%
2282	70 Outperform	¥671.62B	21.23	6.04%	1.98%	5.55%	27.03%
2229	69 Neutral	¥382.65B	21.74	8.27%	1.96%	5.82%	-13.40%
2264	65 Neutral	¥333.62B	29.84	―	2.39%	2.33%	-8.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2296	62 Neutral	¥302.17B	19.79	―	2.58%	6.54%	15.08%

Nichirei Corporation Corporate Events

Nichirei Corporation Expands ASEAN Logistics Network with Capital Increase

Nichirei Corporation announced a capital increase in its subsidiary, Nichirei Logistics Group Inc., to strengthen its logistics network in the ASEAN region. This strategic move aims to enhance cross-border transportation capabilities and expand market presence, impacting the company’s capital structure by designating the involved subsidiaries as specified subsidiaries.

Nichirei Corporation’s Strategic Adjustments and Profit Growth

Nichirei Corporation reported a flat year-on-year net sales performance in the first half, with increases in processed foods and logistics offset by structural reforms in marine, meat, and poultry. Operating profit declined due to weaker processed foods performance, but interim net profit rose by 10% from an investment security sale. For the full year, net sales remain at 700 billion yen, with operating profit revised down by 5.5 billion yen, yet a 1.2 billion yen increase is expected. Profit attributable to owners is projected to rise by 13% to a record 28 billion yen.

Nichirei Corporation Reports Financial Results and Strategic Changes for 2025

Nichirei Corporation reported its financial results for the six months ended September 30, 2025, showing a slight increase in net sales compared to the previous year. The company has implemented a new depreciation method and revised the useful life of its assets to align with its long-term management goals, which has positively impacted its operating and ordinary profits. This strategic move is expected to enhance profitability and capital efficiency, reinforcing Nichirei’s position in the food and logistics industry.