YOKOREI CO. LTD. (2874) AI Stock Analysis

• Market Cap: ¥84.07B
• Dividend Yield: 1.86%
• Average Volume (3M): 190.16K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.54
• 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): 20.51
• Shares Outstanding: 59,222,782
• 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: 56 Neutral
• Price Target: ¥1,495.00 ▲(18.56% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weaker financial performance (sharp TTM revenue decline, thin margins, leverage, and volatile free cash flow). Technicals are a positive, with a clear uptrend and strong momentum, but near-overbought signals temper the outlook. Valuation is also a drag due to a relatively high P/E and modest dividend yield.

Positive Factors

Recurring cold‑chain service model

Yokorei's core business is operating temperature-controlled warehouses and related logistics, which generates recurring, fee-based revenue tied to storage and handling. That business model produces steady demand from food and temperature-sensitive customers and creates durable revenue visibility over months, supporting stable utilization and predictable cash flows for capital planning.

Improved operating cash flow (TTM)

An improved operating cash flow run-rate of ¥19.5B shows the business can generate core cash from operations, which is important for a capital‑intensive cold‑chain operator. Sustained OCF supports maintenance and selective expansion of refrigerated capacity, reducing reliance on external financing for routine capex over a multi‑month horizon.

Stable operating profitability

Gross and operating margins indicate the company retains operating leverage in its network and can cover energy and labor costs at current throughput. Relatively stable operating profitability suggests pricing and cost control have room to sustain margins across typical seasonal demand swings in the cold‑chain industry, supporting mid‑term earnings resilience.

Negative Factors

Sharp revenue decline (TTM)

A 33.9% TTM revenue decline materially reduces utilization and scale benefits for a storage‑dependent operator. Lower volumes compress fixed‑cost absorption in warehouses, weaken pricing leverage with customers, and make it harder to fund maintenance or marginal expansion without restoring top‑line growth over the coming months.

High financial leverage

Debt exceeding equity (debt-to-equity ~1.34) limits financial flexibility for a capital‑intensive logistics firm that must fund facility upkeep and selective expansion. Elevated leverage increases refinancing and interest‑rate sensitivity risk, constraining the firm's ability to absorb prolonged revenue weakness or pursue growth investments without additional capital.

Volatile, weak free cash flow

Modest FCF of ¥1.5B combined with prior negative annual free cash flows signals inconsistent cash conversion after capex and working capital. For a business requiring ongoing investment in temperature‑controlled assets, volatile FCF increases the likelihood of external funding needs and raises execution risk for sustaining capital expenditures over the next several months.

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

Income statement trends are pressured by a sharp TTM revenue decline (-33.9%) and thin profitability (net margin ~1.6%). The balance sheet shows meaningful leverage (debt-to-equity ~1.34) with modest returns (ROE ~2.5%). Cash flow is mixed: operating cash flow improved, but free cash flow is only modestly positive and has been volatile/negative in recent periods.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp revenue decline (-33.9%), with profitability remaining thin (about 11.3% gross margin, 4.7% operating margin, and 1.6% net margin). While operating profitability is fairly stable versus recent years, net income is down versus FY2024 (when net margin was ~3.2%), pointing to weaker bottom-line conversion and limited buffer if costs rise.

Balance Sheet

Leverage is meaningful, with debt running above equity (debt-to-equity ~1.34 in both the latest annual period and TTM), which reduces financial flexibility. Equity is sizable, but returns are modest (return on equity ~2.5% in the latest periods vs ~5.0% in FY2024), indicating the balance sheet is carrying a relatively heavy capital base for the level of earnings being generated.

Cash Flow

Operating cash flow improved in TTM (¥19.5B), but free cash flow is only modestly positive (¥1.5B) and has been negative in most recent annual periods, suggesting ongoing investment or working-capital demands. Cash generation looks weaker relative to funding needs, and free cash flow has been volatile with a very large decline in the latest TTM growth measure.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	125.14B	125.56B	122.28B	125.60B	110.76B	110.78B
Gross Profit	14.63B	14.14B	13.66B	12.63B	12.49B	13.80B
EBITDA	14.82B	13.58B	13.47B	11.49B	10.15B	12.39B
Net Income	3.05B	1.98B	3.93B	2.83B	3.32B	3.60B
Balance Sheet
Total Assets	215.75B	209.03B	203.03B	188.26B	179.02B	178.20B
Cash, Cash Equivalents and Short-Term Investments	3.89B	3.66B	3.48B	3.94B	2.42B	3.17B
Total Debt	105.66B	108.45B	101.23B	95.88B	77.48B	79.58B
Total Liabilities	131.34B	126.61B	123.16B	114.92B	93.85B	95.64B
Stockholders Equity	82.60B	80.72B	78.25B	71.88B	83.80B	81.40B
Cash Flow
Free Cash Flow	1.47B	-8.10B	-7.20B	-10.45B	-2.90B	-85.00M
Operating Cash Flow	19.54B	11.09B	13.47B	3.98B	5.98B	12.79B
Investing Cash Flow	-12.92B	-16.63B	-17.60B	-13.80B	-2.91B	-11.64B
Financing Cash Flow	-6.58B	5.63B	3.63B	16.61B	-3.84B	-2.21B

YOKOREI CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1261.00
• 50DMA: Positive
• 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:2874, the sentiment is Positive. The current price of 1261 is below the 20-day moving average (MA) of 1395.15, below the 50-day MA of 1310.08, and above the 200-day MA of 1154.20, indicating a bullish trend. The MACD of 44.29 indicates Positive momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 33.06 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
1333	76 Outperform	¥240.52B	13.67	9.42%	2.84%	2.63%	-7.81%
1379	75 Outperform	¥63.44B	9.99	―	2.44%	5.74%	76.28%
2292	70 Neutral	¥101.17B	12.63	―	3.59%	4.55%	79.33%
9955	65 Neutral	¥37.81B	10.39	―	0.72%	-2.02%	103.08%
2938	63 Neutral	¥61.29B	25.68	―	0.34%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2874	56 Neutral	¥84.07B	27.62	―	1.86%	4.41%	-41.71%

YOKOREI CO. LTD. Corporate Events

YOKOREI Posts Profit Surge in Q1 FY2026 and Sticks to Full-Year Outlook

YOKOREI Co., Ltd. reported consolidated results for the three months ended December 31, 2025, showing net sales of ¥33.3 billion, down 1.3% year on year, but with operating profit up 21.1% to ¥2.19 billion and profit attributable to owners of parent surging to ¥1.21 billion, helped by a sharp recovery in ordinary profit and improved profitability. The company’s financial position strengthened modestly, with total assets rising to ¥215.7 billion and net assets to ¥84.4 billion, while it maintained its dividend policy with a projected annual payout of ¥24 per share for the fiscal year ending September 30, 2026 and kept its full-year forecast unchanged, targeting ¥118 billion in net sales and a 51.6% jump in bottom-line profit, signaling confidence in earnings growth despite a slight expected decline in annual revenue.

The most recent analyst rating on (JP:2874) stock is a Hold with a Yen1303.00 price target. To see the full list of analyst forecasts on YOKOREI CO. LTD. stock, see the JP:2874 Stock Forecast page.

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.