Nichirei Corporation (JP:2871)
:2871
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Nichirei Corporation
(2871)
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Rating:72Outperform
Price Target:
¥2,215.00
▲(8.00% Upside)
Action:UpgradedDate:10/31/25
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
Diversified Business Model
Nichirei’s dual model — branded/wholesale frozen foods plus temperature-controlled logistics — provides durable revenue diversification. Product sales offer consumer-facing growth while logistics delivers recurring fee income and higher predictability, reducing cyclicality and supporting steady cash flow over time.
Negative Factors
Declining Free Cash Flow
A material FCF decline reduces internally available funds for capex, logistics expansion, or M&A and may pressure dividends or require higher borrowing. Sustained FCF weakness could limit strategic flexibility and increase reliance on debt to fund growth or working capital needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Business Model
Nichirei’s dual model — branded/wholesale frozen foods plus temperature-controlled logistics — provides durable revenue diversification. Product sales offer consumer-facing growth while logistics delivers recurring fee income and higher predictability, reducing cyclicality and supporting steady cash flow over time.
Read all positive factors
Nichirei Corporation (2871) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥479.36B
Dividend Yield2.58%
Average Volume (3M)1.21M
Price to Earnings (P/E)15.2
Beta (1Y)0.09
Revenue Growth0.63%
EPS Growth5.96%
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 Ratio12.16
Price to Book (P/B)1.74
Price to Sales (P/S)0.64
P/FCF Ratio18.16
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 primarily makes money through (1) selling food products and (2) providing cold-chain logistics services. In its processed/frozen foods business, it generates revenue by manufacturing and distributing frozen foods (such as prepared meals a...
Nichirei Corporation Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 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 | 61.22B | 63.30B | 61.73B | 55.63B | 52.78B | 52.87B |
| Net Income | 23.93B | 24.73B | 24.50B | 21.57B | 23.38B | 21.21B |
Balance Sheet | ||||||
| Total Assets | 502.60B | 504.46B | 489.72B | 461.36B | 431.77B | 410.17B |
| Cash, Cash Equivalents and Short-Term Investments | 39.17B | 39.37B | 31.28B | 27.84B | 23.41B | 28.93B |
| Total Debt | 111.75B | 106.25B | 97.95B | 114.58B | 104.71B | 96.42B |
| Total Liabilities | 230.01B | 228.49B | 223.77B | 227.84B | 213.87B | 199.73B |
| Stockholders Equity | 256.85B | 260.04B | 253.41B | 224.44B | 211.17B | 203.33B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 24.87B | 35.72B | 14.04B | 13.37B | 16.92B |
| Operating Cash Flow | 0.00 | 53.19B | 62.44B | 37.87B | 34.66B | 45.45B |
| Investing Cash Flow | 0.00 | -32.40B | -31.41B | -26.84B | -26.02B | -32.21B |
| Financing Cash Flow | 0.00 | -16.80B | -31.43B | -8.59B | -14.18B | -10.71B |
Nichirei Corporation Technical Analysis
Negative
2051.00
Price Trends
1992.17
Negative
1925.14
Negative
1833.15
Positive
Market Momentum
-10.74
Positive
41.99
Neutral
19.82
Positive
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 1961.51, above the 50-day MA of 1992.17, and above the 200-day MA of 1833.15, indicating a neutral trend. The MACD of -10.74 indicates Positive momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 19.82 is Positive, 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 | ¥657.17B | 14.65 | 9.18% | 1.13% | 5.55% | 17.29% | |
73 Outperform | ¥375.82B | 10.77 | 10.18% | 2.56% | 4.98% | 23.38% | |
72 Outperform | ¥479.36B | 15.17 | 9.86% | 2.58% | 0.63% | 5.96% | |
66 Neutral | ¥830.40B | 12.71 | 9.77% | 2.41% | 1.90% | 7.42% | |
63 Neutral | ¥610.55B | 15.19 | 6.04% | 2.04% | 4.68% | 16.45% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | ¥4.57T | 20.92 | 9.46% | 1.32% | 1.38% | -12.32% |
* Consumer Defensive Sector Average
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Nichirei Corporation Corporate Events
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...
Nichirei Maintains FY26 Outlook as Logistics and Processed Foods Offset Business Reforms
Feb 3, 2026
Nichirei Corporation reported that for the third quarter of FY26/3, performance is broadly in line with its revised full-year plan, with solid net sales growth in its processed foods and temperature-controlled logistics segments offset by flat ove...
Nichirei to Shift Fiscal Year-End to December to Align Global Group Reporting
Feb 3, 2026
Nichirei Corporation has resolved to change its fiscal year-end from March 31 to December 31, subject to shareholder approval of amendments to its Articles of Incorporation at the June 2026 annual general meeting. The shift, which will create a ni...
Nichirei Boosts U.S. Frozen Food Platform With Major Capital Injection Into New Subsidiary
Feb 3, 2026
Nichirei Corporation has approved a substantial capital increase for Nichirei Global Foods, LLC, a new Delaware-based frozen food development and production subsidiary that will be wholly owned via its North American unit InnovAsian Cuisine Enterp...
Nichirei Posts Higher Nine-Month Profit and Alters Depreciation Policy Under New Growth Plan
Feb 3, 2026
Nichirei reported consolidated net sales of ¥537.7 billion for the nine months ended December 31, 2025, slightly up year on year, while operating and ordinary profits dipped modestly to ¥30.5 billion and ¥31.4 billion, respectively,...
Nichirei Sets Terms for Multi-Billion Yen Secondary Share Offering
Jan 19, 2026
Nichirei Corporation has set the terms for a secondary offering of its common stock, approving a selling price of 1,791 yen per share, with the aggregate selling amount totaling approximately 29.96 billion yen and an underwriters’ purchase 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.