Toyo Suisan Kaisha (2875) AI Stock Analysis

• Market Cap: ¥1.07T
• Dividend Yield: 1.82%
• Average Volume (3M): 302.83K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.84
• Revenue Growth: 3.64%
• EPS Growth: 5.31%
• Country: JP
• Employees: 4,738
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 205.62
• Shares Outstanding: 110,881,000
• 10 Day Avg. Volume: 300,810
• 30 Day Avg. Volume: 302,833
• PEG Ratio: 0.94
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 18.01
• 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: ¥10,500.00
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 686.33
• Revenue Forecast (FY): ¥534.04B

• Rating: 76 Outperform
• Price Target: ¥13,012.00 ▲(21.49% Upside)
• Action: Reiterated Date: 11/05/25
• Date: Action: Reiterated 11/05/25

Toyo Suisan Kaisha's strong financial performance is the most significant factor driving the stock score, supported by a robust balance sheet and effective cash flow management. The technical analysis indicates mixed signals with short-term bearish sentiment but longer-term stability. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield.

Positive Factors

Very strong balance sheet

Toyo Suisan's minimal leverage (debt/equity ~0.01) and high equity ratio (80.87%) provide durable financial flexibility. With ROE around 13.06%, the company can fund operations and investments from equity and internal cash, reducing refinancing and liquidity risk through cycles.

Healthy and sustainable margins

Consistently strong gross (≈29.5%) and net (≈12.4%) margins indicate structural cost advantages and pricing power in packaged foods. Improved EBIT/EBITDA margins reflect operational efficiency that supports long-term profitability despite commodity swings and competitive pressures.

Solid cash generation and conversion

Operating cash flow consistently exceeds accounting net income (OCF/NI ~1.25) and FCF/NI ~0.78, showing durable cash conversion from core operations. This supports capex, dividends and strategic initiatives without reliance on external financing over the medium term.

Negative Factors

Recent top-line contraction

A negative revenue growth rate (~-2.06%) signals potential demand stagnation or market share pressure. For a consumer staples business, prolonged revenue contraction can limit operating leverage benefits, constrain reinvestment capacity, and signal the need for product or geographic expansion.

Declining free cash flow growth

A modestly negative free cash flow growth rate (-3.86%) erodes available internal funding for growth or shareholder returns if persistent. Over several quarters this can force trade-offs between maintenance capex, marketing investment, and dividends, reducing strategic optionality.

Concentration in instant noodles and core markets

Heavy reliance on instant noodles and primary markets (Japan, U.S.) concentrates revenue risk. Structural shifts in consumer preferences toward healthier alternatives, or adverse commodity cost moves, could disproportionately impact growth unless diversification or product innovation accelerates.

Toyo Suisan Kaisha Business Overview & Revenue Model

Company Description

Toyo Suisan Kaisha, Ltd. produces and sells food products in Japan and internationally. The company operates through six segments: Seafood, Overseas Instant Noodles, Domestic Instant Noodles, Frozen and Refrigerated Foods, Processed Foods, and Cold-Storage. It processes and sells seafood, such as salmon, trout, fish eggs, etc.; and manufactures and sells instant noodles, and frozen and chilled foods, as well as processed foods, such as packaged cooked rice and freeze-dried products. The company also offers soups, fish hams, sausages, and other processed foods. In addition, it freezes and stores food in cold warehouses, as well as engages in the transportation, and custom clearing businesses. Toyo Suisan Kaisha, Ltd. was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toyo Suisan primarily makes money by manufacturing and selling packaged food products, with instant noodles (including cup noodles and bagged ramen) as a core revenue driver. Revenue is generated through wholesale and retail distribution channels in Japan (selling to supermarkets, convenience stores, wholesalers, and other food retailers) and through overseas operations where the company sells similar packaged noodle products under its brands. Earnings are supported by brand-driven consumer demand (e.g., “Maruchan”), scale manufacturing of shelf-stable products, and repeat purchase frequency typical of staple packaged foods. The company’s international business (notably in the U.S.) contributes through local production and/or distribution of branded products into mainstream retail channels. Specific segment revenue shares, margin contribution by product line, or named major partnerships are null.

Toyo Suisan Kaisha Financial Statement Overview

Summary

Toyo Suisan Kaisha demonstrates strong financial health with consistent profitability, a robust balance sheet with low leverage, and effective cash flow management. The company has a solid gross profit margin and net profit margin, and a high equity ratio. However, there is a slight decline in free cash flow growth.

Income Statement

Toyo Suisan Kaisha has demonstrated a robust financial performance in recent years. The gross profit margin has remained consistently strong, with the latest figure at approximately 29.54%. The net profit margin has also shown positive growth, reaching about 12.38% in the most recent period. Revenue growth has been steady, with a notable increase of 3.80% from the previous year. EBIT and EBITDA margins have also improved, highlighting operational efficiency and effective cost management.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.01, indicating minimal reliance on debt financing. The return on equity (ROE) is strong at approximately 13.06%, reflecting effective utilization of shareholders' equity to generate profits. The equity ratio is high at 80.87%, showcasing financial stability and a strong equity position relative to total assets.

Cash Flow

Cash flow management at Toyo Suisan Kaisha is commendable, with a healthy operating cash flow to net income ratio of 1.25, indicating effective cash generation from operations. The free cash flow growth rate, however, has been slightly negative at -3.86%, suggesting potential challenges in maintaining high levels of free cash flow. Despite this, the company's free cash flow to net income ratio stands at 0.78, reflecting reasonable cash flow conversion.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	515.02B	507.60B	489.01B	435.79B	361.50B	417.51B
Gross Profit	154.28B	151.31B	140.10B	108.04B	90.52B	165.25B
EBITDA	102.71B	100.82B	90.53B	59.77B	47.09B	54.16B
Net Income	64.03B	62.87B	55.65B	33.13B	22.41B	29.07B
Balance Sheet
Total Assets	629.24B	594.98B	570.99B	497.08B	454.67B	428.65B
Cash, Cash Equivalents and Short-Term Investments	233.41B	257.47B	254.71B	186.01B	177.92B	159.54B
Total Debt	3.26B	3.40B	3.56B	3.75B	3.95B	3.93B
Total Liabilities	111.84B	101.33B	96.46B	92.33B	87.52B	85.33B
Stockholders Equity	504.48B	481.19B	462.32B	392.18B	354.88B	331.46B
Cash Flow
Free Cash Flow	0.00	49.01B	51.84B	28.66B	20.66B	31.82B
Operating Cash Flow	0.00	78.78B	70.50B	42.03B	33.29B	47.78B
Investing Cash Flow	0.00	-40.06B	-53.74B	-25.20B	-27.31B	-49.98B
Financing Cash Flow	0.00	-43.54B	-12.71B	-9.62B	-9.60B	-8.59B

Toyo Suisan Kaisha Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10710.00
• 50DMA: Negative
• 100DMA: Negative
• 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:2875, the sentiment is Negative. The current price of 10710 is below the 20-day moving average (MA) of 11622.25, below the 50-day MA of 11483.30, and above the 200-day MA of 10486.18, indicating a neutral trend. The MACD of -210.21 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 11.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2875.

Toyo Suisan Kaisha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2875	76 Outperform	¥1.07T	13.07	13.07%	1.82%	3.64%	5.31%
1332	73 Outperform	¥412.86B	10.77	10.18%	2.56%	3.87%	29.64%
2897	66 Neutral	¥842.64B	12.71	9.77%	2.41%	1.46%	-2.17%
2282	63 Neutral	¥660.31B	15.19	6.04%	2.04%	5.55%	27.03%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2269	62 Neutral	¥1.06T	13.62	5.97%	2.96%	2.79%	-6.46%
2802	61 Neutral	¥4.06T	20.92	9.46%	1.32%	1.99%	-18.79%

Toyo Suisan Kaisha Corporate Events

Toyo Suisan Posts Higher Nine-Month Profit and Confirms FY2026 Outlook, Dividend Plan

Toyo Suisan Kaisha reported solid revenue and profit growth for the nine months ended December 31, 2025, with net sales rising 3.6% year on year to ¥402.6 billion and profit attributable to owners of parent increasing 5.0% to ¥53.4 billion, while maintaining a strong financial position with an equity ratio above 80%. The company kept its full-year FY2026 forecasts unchanged, projecting 4.4% growth in net sales to ¥535.0 billion and a 3.4% increase in profit attributable to owners of parent to ¥66.0 billion, and confirmed its plan to pay a total annual dividend of ¥200 per share, signaling continued earnings stability and shareholder returns despite changes in accounting policies and a minor adjustment to the scope of consolidation.

The most recent analyst rating on (JP:2875) stock is a Sell with a Yen9000.00 price target. To see the full list of analyst forecasts on Toyo Suisan Kaisha stock, see the JP:2875 Stock Forecast page.

Toyo Suisan Completes ¥23.5 Billion Share Buyback Program

Toyo Suisan Kaisha has completed a share buyback program authorized by its board of directors, acquiring an additional 81,200 common shares for approximately ¥888.9 million between December 1 and December 25, 2025. This brings the cumulative total under the May 12, 2025 resolution to 2,283,900 shares repurchased at a total cost of about ¥23.5 billion, effectively reaching the upper limit of the planned acquisition and signaling ongoing efforts to enhance capital efficiency and shareholder value through active capital management.

The most recent analyst rating on (JP:2875) stock is a Sell with a Yen9000.00 price target. To see the full list of analyst forecasts on Toyo Suisan Kaisha stock, see the JP:2875 Stock Forecast page.