Nichirei Corporation (JP:2871)
:2871
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Nichirei Corporation
(2871)
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Rating:60Neutral
Price Target:
¥1,937.00
▼(-5.56% Downside)
Action:Downgraded
Date:05/14/26
The score is driven primarily by solid financial performance (steady growth, stable margins, and moderate leverage) but is held back by weak technical momentum (below key moving averages with a negative MACD) and uneven free-cash-flow conversion. Valuation is reasonable with a moderate P/E and a supportive dividend yield.
Positive Factors
Steady revenue growth & improving margins
Consistent top-line growth (≈2.1% in FY2026) alongside rising gross margin and stable mid‑single-digit operating margins indicates a reliable core business. These durable trends reflect product demand and operational control, supporting predictable earnings and long-term business stability.
Negative Factors
Volatile free-cash-flow conversion
Operating cash flow strength is tempered by inconsistent conversion to free cash flow and a material step-down in FY2026 (~0.38 relative to earnings). This volatility constrains the firm's ability to consistently fund capex, dividends, or debt reduction without relying on balance-sheet adjustments.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth & improving margins
Consistent top-line growth (≈2.1% in FY2026) alongside rising gross margin and stable mid‑single-digit operating margins indicates a reliable core business. These durable trends reflect product demand and operational control, supporting predictable earnings and long-term business stability.
Read all positive factors
Nichirei Corporation (2871) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥458.06B
Dividend Yield2.58%
Average Volume (3M)1.21M
Price to Earnings (P/E)18.1
Beta (1Y)0.09
Revenue Growth2.00%
EPS Growth12.21%
CountryJP
Employees16,385
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)94.52
Shares Outstanding256,984,950
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
¥2,287.50Price Target Upside11.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)109.21
Revenue Forecast (FY)¥652.50B
Nichirei Corporation Business Overview & Revenue Model
Company Description
Nichirei 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, welln...
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 | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 701.69B | 716.14B | 702.08B | 680.09B | 662.20B | 602.70B |
| Gross Profit | 126.73B | 129.22B | 126.23B | 120.15B | 108.87B | 102.25B |
| EBITDA | 61.22B | 61.09B | 63.30B | 61.73B | 55.63B | 52.78B |
| Net Income | 23.93B | 27.33B | 24.73B | 24.50B | 21.57B | 23.38B |
Balance Sheet | ||||||
| Total Assets | 502.60B | 557.24B | 504.46B | 489.72B | 461.36B | 431.77B |
| Cash, Cash Equivalents and Short-Term Investments | 39.17B | 52.11B | 39.37B | 31.28B | 27.84B | 23.41B |
| Total Debt | 111.75B | 124.75B | 106.25B | 97.95B | 114.58B | 104.71B |
| Total Liabilities | 230.01B | 252.80B | 228.49B | 223.77B | 227.84B | 213.87B |
| Stockholders Equity | 256.85B | 286.35B | 260.04B | 253.41B | 224.44B | 211.17B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 18.55B | 24.87B | 35.72B | 14.04B | 13.37B |
| Operating Cash Flow | 0.00 | 48.75B | 53.19B | 62.44B | 37.87B | 34.66B |
| Investing Cash Flow | 0.00 | -29.94B | -32.40B | -31.41B | -26.84B | -26.02B |
| Financing Cash Flow | 0.00 | -6.34B | -16.80B | -31.43B | -8.59B | -14.18B |
Nichirei Corporation Technical Analysis
Negative
2051.00
Price Trends
1922.21
Negative
1925.81
Negative
1842.61
Negative
Market Momentum
-23.61
Positive
35.23
Neutral
50.81
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 2051 is above the 20-day moving average (MA) of 1869.15, above the 50-day MA of 1922.21, and above the 200-day MA of 1842.61, indicating a bearish trend. The MACD of -23.61 indicates Positive momentum. The RSI at 35.23 is Neutral, neither overbought nor oversold. The STOCH value of 50.81 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥634.69B | 14.65 | 9.18% | 1.13% | 5.55% | 17.29% | |
71 Outperform | ¥5.12T | 23.62 | 9.46% | 1.32% | 3.47% | 99.65% | |
65 Neutral | ¥414.41B | 14.90 | 10.18% | 2.56% | 5.09% | 10.53% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | ¥458.06B | 18.06 | 9.86% | 2.58% | 2.00% | 12.21% | |
56 Neutral | ¥562.37B | 19.47 | 6.04% | 2.04% | 6.34% | 38.64% | |
53 Neutral | ¥771.41B | 19.10 | 9.77% | 2.41% | 1.49% | -14.54% |
* Consumer Defensive Sector Average
JP:2871
Nichirei Corporation
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Nichirei Corporation Corporate Events
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 ...
Nichirei Boosts European Cold-Chain Unit With Major Capital Increase
Mar 17, 2026
Nichirei Corporation has approved a substantial capital increase at its European sub-subsidiary Nichirei Holding Holland B.V., lifting its capital from EUR 11.35 million to EUR 46.35 million and thereby classifying it as a specified subsidiary. Th...
Nichirei Overhauls Top Management to Drive Post-Integration Growth
Feb 17, 2026
Nichirei Corporation has announced a leadership transition effective April 1, 2026, with current President and CEO Kenya Okushi becoming Representative Director and Chairman, and Senior Executive Officer Kazunori Shimamoto stepping up as Represent...
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.