YOKOREI CO. LTD. (2874) AI Stock Analysis

• Market Cap: ¥74.48B
• Dividend Yield: 1.86%
• Average Volume (3M): 190.16K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.47
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,303.00 ▲(3.33% 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

Stable asset base and operational efficiency

A stable asset base and demonstrated operational efficiency enhance resilience in food processing, supporting steady production capacity and cost control. Over 2-6 months this underpins consistent supply to retailers and foodservice partners and helps sustain margins amid input volatility.

Healthy equity ratio provides balance-sheet foundation

A healthy equity ratio signals capital stability, enabling the company to absorb shocks, finance working capital for seasonal seafood cycles, and pursue export or product investments. This structural strength supports credit access and long-term operational continuity.

Strong operating cash flow versus net income

Robust operating cash generation relative to reported earnings indicates high cash quality from core operations. Over several months this helps fund inventories and receivables typical in processed food, supports supplier relationships, and reduces reliance on external short-term funding.

Negative Factors

Increasing leverage and rising debt-to-equity

Rising leverage reduces financial flexibility and raises interest cost sensitivity. Structurally, higher debt burdens constrain the company's ability to finance capex, absorb commodity price shocks, or invest in export expansion without raising external capital and increasing refinancing risk.

Negative free cash flow in recent years

Persistent negative free cash flow signals that operating cash is insufficient to cover capex and investments, necessitating external financing or asset draws. Over the medium term this can limit strategic investments, strain liquidity, and elevate refinancing needs during downturns.

Declining net income and inconsistent revenue growth

Declining net income and uneven revenue trends undermine margin sustainability and reduce retained earnings for reinvestment. Structurally, this pressures return metrics and could weaken competitive positioning if management cannot stabilize sales or reverse the EPS decline through product or market initiatives.

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: Positive
• Last Price: 1261.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2874, the sentiment is Positive. The current price of 1261 is above the 20-day moving average (MA) of 1230.90, below the 50-day MA of 1281.94, and above the 200-day MA of 1101.72, indicating a neutral trend. The MACD of -10.07 indicates Negative momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 74.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥62.43B	9.78	―	2.44%	5.74%	76.28%
8041	72 Outperform	¥22.04B	4.38	―	2.46%	5.27%	9.51%
2003	71 Outperform	¥63.56B	18.59	―	3.98%	1.21%	-14.59%
9955	65 Neutral	¥38.12B	11.38	―	0.72%	-2.02%	103.08%
2874	64 Neutral	¥74.48B	37.74	―	1.86%	4.41%	-41.71%
2938	63 Neutral	¥56.23B	28.30	―	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 to Dispose of Treasury Shares for Director Restricted Stock Compensation

YOKOREI Co., Ltd. has approved the disposal of 37,400 treasury shares as part of its restricted stock compensation plan for six internal directors, with a payment date set for January 22, 2026 and a disposal price of JPY 1,287 per share, for a total value of JPY 48,133,800. The move continues a long-term incentive scheme first introduced in 2019 to better align management remuneration with medium- to long-term corporate and shareholder value, tying share awards to continued service and subjecting them to transfer restrictions and potential clawback, thereby reinforcing governance, retention of key executives and alignment of interests with shareholders.

The most recent analyst rating on (JP:2874) stock is a Hold with a Yen1459.00 price target. To see the full list of analyst forecasts on YOKOREI CO. LTD. stock, see the JP:2874 Stock Forecast page.

YOKOREI Signs Liability Limitation Agreement With Newly Appointed Outside Director

YOKOREI Co., Ltd. has concluded a liability limitation agreement with newly appointed outside director Masako Natori, effective December 23, 2025, following approval at the company’s 78th Annual General Meeting of Shareholders. The agreement, based on Article 30 of YOKOREI’s Articles of Incorporation and the relevant provisions of Japan’s Companies Act, caps the director’s liability for damages at the maximum amount permitted by law, a move intended to help her fully perform her oversight role and align the company’s governance framework with common Japanese corporate practice.

The most recent analyst rating on (JP:2874) stock is a Hold with a Yen1459.00 price target. To see the full list of analyst forecasts on YOKOREI CO. LTD. stock, see the JP:2874 Stock Forecast page.

YOKOREI Corrects Previously Disclosed Financial Results and Files Amended Reports

YOKOREI Co., Ltd. has announced that it identified errors in previously disclosed financial results, as well as in certain items within its securities reports and semi-annual report, and has therefore filed amended reports with the Kanto Local Finance Bureau. The corrections, details of which are available in Japanese disclosure materials, indicate the company is moving to rectify past reporting inaccuracies, a step that may affect how investors and other stakeholders evaluate its recent financial disclosures and reporting practices.

The most recent analyst rating on (JP:2874) stock is a Hold with a Yen1459.00 price target. To see the full list of analyst forecasts on YOKOREI CO. LTD. stock, see the JP:2874 Stock Forecast page.

YOKOREI Co., Ltd. Corrects Financial Results for FY2025

YOKOREI Co., Ltd. has announced corrections to its consolidated financial results for the fiscal year ended September 30, 2025, due to an error in the owner’s equity figures caused by an omission during year-end closing procedures. The corrected figures have been submitted, ensuring accurate financial reporting and maintaining transparency with stakeholders.

The most recent analyst rating on (JP:2874) stock is a Buy with a Yen1291.00 price target. To see the full list of analyst forecasts on YOKOREI CO. LTD. stock, see the JP:2874 Stock Forecast page.

YOKOREI Partners with BentallGreenOak for Strategic Growth in Refrigerated Warehousing

YOKOREI Co., Ltd. has entered into a strategic partnership with BentallGreenOak K.K. to accelerate its business development in the refrigerated warehousing sector. This partnership aims to enhance YOKOREI’s competitiveness by leveraging BGO’s financial resources and expertise in real estate fund management, enabling the joint development of state-of-the-art distribution centers that incorporate AI and robotics for improved operational efficiency.

The most recent analyst rating on (JP:2874) stock is a Buy with a Yen1291.00 price target. To see the full list of analyst forecasts on YOKOREI CO. LTD. stock, see the JP:2874 Stock Forecast page.

YOKOREI Revises Medium-Term Management Plan Amid Cost Challenges

YOKOREI Co., Ltd. has revised its medium-term management plan for the fiscal year ending September 30, 2026, due to shifts in business structure and unexpected costs. The company aims to focus on profitability in its food sales business and address higher depreciation and energy costs in its refrigerated warehousing segment. Despite these adjustments, YOKOREI remains committed to its core strategies and sustainability goals outlined in ‘The Power to Connect’ plan.

The most recent analyst rating on (JP:2874) stock is a Buy with a Yen1291.00 price target. To see the full list of analyst forecasts on YOKOREI CO. LTD. stock, see the JP:2874 Stock Forecast page.

YOKOREI Co., Ltd. Reports Fiscal Year 2025 Financial Results Amid Profitability Challenges

YOKOREI Co., Ltd. reported its consolidated financial results for the fiscal year ending September 30, 2025, showing a slight increase in net sales by 2.7% to 125,563 million yen. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, with the latter decreasing by 49.7%. The company also announced a new inclusion in its consolidation scope, PAX FREEZER Co., Ltd., indicating potential expansion in its operations. Despite the challenges in profitability, YOKOREI maintained its dividend per share at 24.00 yen, reflecting a commitment to shareholder returns.

The most recent analyst rating on (JP:2874) stock is a Buy with a Yen1291.00 price target. To see the full list of analyst forecasts on YOKOREI CO. LTD. stock, see the JP:2874 Stock Forecast page.