Seihyo Co., Ltd. (2872) AI Stock Analysis

• Market Cap: ¥3.73B
• Dividend Yield: 0.77%
• Average Volume (3M): 5.56K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.69
• Revenue Growth: 5.37%
• EPS Growth: 116.23%
• Country: JP
• Employees: 90
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): 85.70
• Shares Outstanding: 1,620,993
• 10 Day Avg. Volume: 6,210
• 30 Day Avg. Volume: 5,560
• PEG Ratio: -3.65
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 147.12
• 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

• Rating: 60 Neutral
• Price Target: ¥2,490.00 ▲(6.64%Upside)

Seihyo Co., Ltd. exhibits stable financial performance with revenue growth and profitability, yet challenges in cash flow management and rising debt levels require attention. Technical analysis suggests neutral to bearish conditions, and the high P/E ratio indicates possible overvaluation, which may affect investor sentiment.

Seihyo Co., Ltd. Business Overview & Revenue Model

Company Description

Seihyo Co., Ltd. (2872) is a Japan-based company primarily engaged in the production and sale of ice and frozen desserts. The company operates in the food manufacturing sector, focusing on delivering high-quality frozen products to meet the diverse tastes and preferences of its customers. Seihyo's core offerings include a variety of ice creams, frozen yogurts, and other frozen confections that are distributed across retail and commercial channels.

How the Company Makes Money

Seihyo Co., Ltd. generates revenue by producing and selling a range of frozen dessert products. The company's primary revenue streams include direct sales to retailers and wholesalers, who distribute Seihyo's products to supermarkets, convenience stores, and other retail outlets. Additionally, Seihyo may engage in partnerships with food service providers and restaurants, offering bulk or customized frozen dessert solutions to enhance their dessert menus. The company's earnings are influenced by factors such as seasonal demand, product innovation, and consumer trends in frozen desserts, as well as operational efficiencies in production and distribution.

Seihyo Co., Ltd. Financial Statement Overview

Summary

Seihyo Co., Ltd. shows promising financial performance with strong revenue growth and improved profitability metrics. The balance sheet is stable, but rising debt levels need monitoring. Cash flow management is a challenge, with negative free cash flow indicating inefficiencies.

Income Statement

Seihyo Co., Ltd. demonstrated strong revenue growth with a 5.37% increase from 2024 to 2025, and improved profitability metrics such as gross profit margin at 18.92% and net profit margin at 2.66% in 2025. The company's EBITDA margin has been stable, indicating efficient operations. However, the EBIT margin is relatively low, suggesting potential cost management issues.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.84 in 2025, indicating a balanced approach to leveraging. Stockholders' equity accounts for 42.41% of total assets, showing a solid equity ratio. Although the overall financial position seems stable, the increase in total debt over the years poses a potential risk if not managed carefully.

Cash Flow

Seihyo Co., Ltd. has faced challenges in generating positive free cash flow, with a negative free cash flow of -41.59 million in 2025. Operating cash flow is relatively low compared to net income, signaling inefficiencies in cash generation from operations. However, the company has improved its free cash flow position compared to previous years, indicating progress.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.88B	4.48B	4.26B	4.19B	3.96B	3.50B
Gross Profit	792.92M	848.61M	721.00M	593.89M	636.67M	579.74M
EBITDA	306.04M	299.86M	242.50M	203.25M	205.63M	207.61M
Net Income	169.31M	119.50M	61.41M	20.59M	63.48M	47.28M
Balance Sheet
Total Assets	3.21B	3.29B	2.92B	2.88B	2.09B	2.06B
Cash, Cash Equivalents and Short-Term Investments	337.00M	329.43M	215.12M	573.34M	213.76M	99.07M
Total Debt	855.00M	1.17B	912.49M	600.43M	524.00M	475.75M
Total Liabilities	1.76B	1.89B	1.64B	1.38B	992.95M	1.02B
Stockholders Equity	1.45B	1.40B	1.28B	1.50B	1.10B	1.05B
Cash Flow
Free Cash Flow	0.00	-41.59M	-362.90M	37.51M	160.78M	402.98M
Operating Cash Flow	0.00	34.69M	169.46M	210.00M	253.02M	486.11M
Investing Cash Flow	0.00	-80.53M	-531.54M	-178.05M	-89.72M	-63.15M
Financing Cash Flow	0.00	160.15M	3.85M	327.63M	-48.61M	-456.94M

Seihyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2335.00
• 50DMA: Negative
• 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:2872, the sentiment is Neutral. The current price of 2335 is below the 20-day moving average (MA) of 2368.35, below the 50-day MA of 2369.70, and above the 200-day MA of 2087.12, indicating a neutral trend. The MACD of -9.87 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 59.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2872.

Seihyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2286	73 Outperform	¥4.61B	4.25		4.77%	3.99%	42.98%
2894	69 Neutral	¥5.27B	18.06		1.28%	3.60%	-38.49%
2872	60 Neutral	¥3.73B	27.25		0.77%	5.37%	116.23%
2876	56 Neutral	¥3.72B	8.31		3.67%	-13.39%	-170.53%
Sector *	50 Neutral	AU$2.24B	3.39	-14.55%	12.25%	7.38%	-66.34%
2291	46 Neutral	¥3.57B	―		―	-2.27%	-526.69%
2293	44 Neutral	¥5.16B	―		0.79%	-0.43%	-499.91%