YOKOREI CO. LTD. (2874) AI Stock Analysis

• Market Cap: ¥75.72B
• Dividend Yield: 1.86%
• Average Volume (3M): 190.16K
• Price to Earnings (P/E): 38.4
• Beta (1Y): 0.51
• Revenue Growth: 4.41%
• EPS Growth: -41.71%
• Country: JP
• Employees: 1,736
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): -5.26
• Shares Outstanding: 59,266,685
• 10 Day Avg. Volume: 110,960
• 30 Day Avg. Volume: 190,163
• PEG Ratio: -0.73
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -8.85
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,459.00 ▲(13.36% Upside)

YOKOREI CO. LTD.'s stock score reflects a balance of strong technical momentum and mixed financial performance. The high P/E ratio suggests potential overvaluation, which is a concern despite the positive technical indicators. The lack of earnings call data and corporate events limits additional insights into future prospects.

Positive Factors

Market Position

YOKOREI's strong market position in international markets due to high demand for Japanese seafood provides a durable revenue stream and growth potential.

Product Innovation

Continuous investment in product innovation helps YOKOREI maintain competitive advantages and adapt to changing consumer preferences, supporting long-term growth.

Operational Efficiency

Stable operational efficiency ensures YOKOREI can effectively manage costs and resources, contributing to sustained profitability and competitive positioning.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth suggests potential difficulties in sustaining market demand or competitive pressures, which could impact long-term financial performance.

Rising Leverage

Increasing leverage can strain financial flexibility and increase risk, potentially affecting YOKOREI's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow may limit YOKOREI's ability to fund operations and growth initiatives, posing a risk to long-term financial health.

YOKOREI CO. LTD. Business Overview & Revenue Model

Company Description

Yokorei Co.,Ltd. engages in food distribution and refrigerated warehouse businesses in Japan and internationally. It imports, processes, sells, and exports marine products, such as scallop, salmon, octopus, fish egg, crab, squid, mackerel, fish, trout, shrimp, and others to wholesalers, food product manufacturers, marine product processing companies, volume retailers, ready meal vendors, restaurants, caterers, and others; livestock products, including pork, chicken, and beef to manufacturers, wholesalers, volume retailers, and restaurant chains; and agricultural products comprising potatoes, onions, and pumpkins to frozen food product manufacturers, restaurant chains, and wholesalers. The company also provides logistics outsourcing services consisting of customs clearance, storage, and delivery; information and communication technology services; and electronic data interchange services. In addition, it engages in real estate leasing, freight forwarding and trucking, restaurant and coffee shop management, food and drink sales, and other related businesses. The company was formerly known as Yokohama Reito Co.,Ltd. and changed its name to Yokorei Co.,Ltd. in December 2021. Yokorei Co.,Ltd. was founded in 1948 and is headquartered in Yokohama, Japan.

How the Company Makes Money

YOKOREI generates revenue primarily through the sale of its processed seafood products, which include a variety of ready-to-eat meals, frozen seafood, and canned goods. The company has established key partnerships with retailers, wholesalers, and food service providers, allowing it to reach a broad customer base. Additionally, YOKOREI benefits from export opportunities, tapping into international markets where demand for Japanese seafood is high. The company also invests in product innovation and marketing strategies to differentiate its offerings and increase market share, contributing significantly to its earnings.

YOKOREI CO. LTD. Financial Statement Overview

Summary

YOKOREI CO. LTD. presents a mixed financial picture. The company maintains a stable asset base and operational efficiency, but challenges in revenue growth and increasing leverage pose potential risks. Cash flow management, particularly free cash flow, requires attention to ensure sustainable financial health.

Income Statement

YOKOREI CO. LTD. has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, but there is a noticeable decline in net income over the years, impacting the net profit margin. Revenue growth has been inconsistent, with recent declines indicating potential challenges in maintaining sales momentum. The EBIT and EBITDA margins suggest moderate operational efficiency, but the declining trend in EBIT indicates potential cost management issues.

Balance Sheet

The company's balance sheet reflects a moderate financial position with a debt-to-equity ratio that has increased over time, indicating rising leverage. However, the equity ratio remains healthy, suggesting a stable asset base. Return on equity has been modest, reflecting the challenges in translating equity into net income growth. Overall, the balance sheet shows stability but with increasing leverage risks.

Cash Flow

Cash flow analysis reveals some concerns, particularly with negative free cash flow in recent years, despite growth in operating cash flow. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the negative free cash flow to net income ratio highlights potential issues in capital expenditure management or investment returns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	125.56B	125.56B	122.28B	125.60B	110.76B	110.78B
Gross Profit	14.14B	14.14B	13.66B	12.63B	12.49B	13.80B
EBITDA	14.18B	13.58B	13.47B	11.49B	10.15B	12.39B
Net Income	1.98B	1.98B	3.93B	2.83B	3.32B	3.60B
Balance Sheet
Total Assets	209.03B	209.03B	203.03B	188.26B	179.02B	178.20B
Cash, Cash Equivalents and Short-Term Investments	3.66B	3.66B	3.48B	3.94B	2.42B	3.17B
Total Debt	108.45B	108.45B	101.23B	95.88B	77.48B	79.58B
Total Liabilities	126.61B	126.61B	123.16B	114.92B	93.85B	95.64B
Stockholders Equity	80.72B	80.72B	78.25B	71.88B	83.80B	81.40B
Cash Flow
Free Cash Flow	-8.10B	-8.10B	-7.20B	-10.45B	-2.90B	-85.00M
Operating Cash Flow	11.09B	11.09B	13.47B	3.98B	5.98B	12.79B
Investing Cash Flow	-16.63B	-16.63B	-17.60B	-13.80B	-2.91B	-11.64B
Financing Cash Flow	5.63B	5.63B	3.63B	16.61B	-3.84B	-2.21B

YOKOREI CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1287.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2874, the sentiment is Neutral. The current price of 1287 is below the 20-day moving average (MA) of 1336.90, above the 50-day MA of 1275.64, and above the 200-day MA of 1048.37, indicating a neutral trend. The MACD of 13.48 indicates Positive momentum. The RSI at 44.24 is Neutral, neither overbought nor oversold. The STOCH value of 10.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2874.

YOKOREI CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1379	75 Outperform	¥64.61B	10.12	―	2.44%	5.74%	76.28%
8041	72 Outperform	¥21.68B	4.31	―	2.46%	5.27%	9.51%
2003	71 Outperform	¥64.11B	18.75	―	3.98%	1.21%	-14.59%
9955	65 Neutral	¥33.87B	10.11	―	0.72%	-2.02%	103.08%
2874	64 Neutral	¥75.72B	38.37	―	1.86%	4.41%	-41.71%
2938	63 Neutral	¥51.68B	26.03	―	0.34%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

YOKOREI CO. LTD. Corporate Events

YOKOREI Co., Ltd. Announces Strategic Management Improvements for 2030 Vision

YOKOREI Co., Ltd. has announced a set of medium- to long-term management improvement measures aimed at increasing corporate value and aligning with its Business Vision 2030. The company plans to maintain financial soundness and improve its operations by implementing inventory reforms, stricter sales targets, and more rigorous business investment processes. These measures are expected to enhance YOKOREI’s market positioning and provide better returns for stakeholders.

YOKOREI Co., Ltd. Corrects Financial Results for March 2025

YOKOREI Co., Ltd. has issued corrections to its consolidated financial results for the six months ending March 31, 2025, under Japanese GAAP. The corrections involve adjustments to basic earnings per share and net assets per share, reflecting minor discrepancies in previously reported figures, which have now been rectified to ensure accuracy in financial reporting.

YOKOREI Co., Ltd. Tightens Business Investment Processes to Enhance Risk Management

YOKOREI Co., Ltd. has announced the development of measures to tighten its business investment processes to address previously identified deficiencies in internal control over financial reporting. The company aims to clarify investment decision-making criteria, enhance information sharing with the Board of Directors, and strengthen monitoring systems to prevent recurrence of similar issues. These initiatives are part of a broader effort to restore trust and improve risk management across the organization.

YOKOREI Co., Ltd. Announces Strategic Measures for Financial Improvement

YOKOREI Co., Ltd. announced measures to align management with capital cost awareness, following an analysis showing a need to improve their financial strategy as their PBR remains below 1.0. The company aims to enhance profitability through inventory reforms, sales target adjustments, and investment optimization, with further details to be disclosed after the upcoming Board of Directors meeting.

YOKOREI Co., Ltd. Reports Higher Operating Income Despite Lower Sales

YOKOREI Co., Ltd. reported a discrepancy between its forecasted and actual earnings for the first half of the fiscal year ending September 30, 2025. Despite lower net sales than anticipated, the company achieved higher operating income due to steady merchandise volume and rate revisions, which offset increased depreciation and electricity costs. The full-year earnings forecast remains unchanged.

YOKOREI Co., Ltd. Reports Strong Interim Financial Results and Strategic Expansion

YOKOREI Co., Ltd. reported a strong financial performance for the six months ending March 31, 2025, with significant increases in net sales and profits compared to the previous year. The company also announced the inclusion of PAX FREEZER Co., Ltd. in its consolidation, which may enhance its operational capabilities. Despite a forecasted decline in profits for the fiscal year ending September 30, 2025, the company’s strategic moves, such as maintaining a stable dividend, suggest a focus on long-term growth and stability.