Nichirei Corporation (2871) AI Stock Analysis

• Market Cap: €475.83B
• Dividend Yield: 2.18%
• Average Volume (3M): 910.70K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.19
• Revenue Growth: 3.23%
• EPS Growth: 1.50%
• Country: JP
• Employees: 16,385
• Sector: Industrials
• Sector Strength: 87
• Industry: Packaged Foods
• EPS (TTM): 16.69
• Shares Outstanding: 256,929,750
• 10 Day Avg. Volume: 816,990
• 30 Day Avg. Volume: 910,700
• PEG Ratio: 3.44
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.71
• 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: €2,894.69
• Price Target Upside: 54.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: ¥2,046.00 ▲(9.27%Upside)

Nichirei Corporation scores well due to its robust financial performance, showcasing strong revenue growth and stable profitability. Technical and valuation factors indicate a stable and reasonably valued stock, supported by a competitive dividend yield. The absence of earnings call and new corporate events data limits further insights into potential growth catalysts or risks.

Nichirei Corporation Business Overview & Revenue Model

Company Description

Nichirei Corporation is a leading Japanese company that operates primarily in the food and logistics sectors. The company's core products and services include processed foods, such as frozen and pre-cooked meals, as well as logistics services specializing in temperature-controlled transportation and storage. Nichirei also has interests in biosciences, focusing on the development of natural extracts and functional ingredients.

How the Company Makes Money

Nichirei Corporation makes money through its diverse operations across several key business segments. The primary source of revenue is its processed foods segment, which includes the production and sale of frozen foods, ready-to-eat meals, and other processed food items to both domestic and international markets. Nichirei's logistics segment also contributes significantly to its earnings, providing specialized services such as refrigerated transportation and cold storage solutions crucial for temperature-sensitive goods. Additionally, the company has a bioscience division that generates income from the development and sale of natural extracts and ingredients used in various industries, including pharmaceuticals and nutraceuticals. Nichirei's revenue model is further supported by strategic partnerships with retailers, distributors, and other food manufacturers, enhancing its market reach and distribution capabilities.

Nichirei Corporation Financial Statement Overview

Summary

Nichirei Corporation demonstrates consistent revenue growth and stable profitability margins, with a moderate Debt-to-Equity Ratio indicating 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
700.52B	702.08B	680.09B	662.20B	602.70B	572.76B
	Gross Profit
126.96B	126.23B	120.15B	108.87B	102.25B	98.80B
	EBIT
38.88B	38.31B	36.91B	32.94B	31.41B	32.95B
	EBITDA
56.77B	63.26B	61.13B	56.47B	57.09B	52.23B
	Net Income Common Stockholders
24.98B	24.73B	24.50B	21.57B	23.38B	21.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.40B	39.37B	31.28B	27.84B	23.41B	28.93B
	Total Assets
511.81B	499.22B	485.16B	457.33B	427.61B	405.72B
	Total Debt
114.92B	106.25B	97.95B	114.58B	104.71B	96.42B
	Net Debt
80.52B	66.88B	66.67B	86.73B	81.30B	67.49B
	Total Liabilities
236.75B	223.25B	219.22B	223.82B	209.70B	195.29B
	Stockholders Equity
259.91B	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: Negative
• Last Price: 1872.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 1872.5 is above the 20-day moving average (MA) of 1859.75, below the 50-day MA of 1878.85, and below the 200-day MA of 1963.23, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 42.78 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2229	74 Outperform	¥356.25B	16.51	10.34%	2.13%	6.45%	4.95%
2809	74 Outperform	¥461.08B	16.40	9.19%	2.00%	5.92%	56.91%
2296	72 Outperform	¥261.35B	21.40		3.04%	3.47%	-15.46%
2871	68 Neutral	€475.83B	19.24	9.55%	2.18%	3.23%	1.50%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
2282	66 Neutral	€494.91B	19.11	4.96%	2.81%	5.15%	-3.91%
2264	63 Neutral	¥294.06B	51.29		2.71%	2.58%	-90.55%

Nichirei Corporation Corporate Events

Nichirei Corporation Sets Ambitious Growth Targets with New Business Plan

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

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

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

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

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

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’

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.

Nichirei Corporation Implements Measures to Prevent Misconduct Recurrence

Nichirei Corporation has announced measures to prevent recurrence of misconduct at its Chinese subsidiary, following an investigation into governance deficiencies and management issues. The company plans to enhance governance and internal controls, clarify executive appointment criteria, and strengthen management involvement to restore trust and ensure compliance across its operations.

Nichirei Corporation Uncovers Misconduct at Chinese Subsidiary

Nichirei Corporation has disclosed misconduct by a former employee at its Chinese subsidiary, Nichirei Corporation Shanghai Ltd. The misconduct involved unauthorized business activities and financial agreements, leading to a loss of approximately 90 million yen. The company has initiated an investigation and plans to implement measures to prevent future occurrences, although the financial impact on the company is expected to be limited.