Low Leverage / Strong Equity BaseA very low debt-to-equity ratio and high equity ratio provide durable financial flexibility. This reduces refinancing and default risk, supports capital spending or restructuring without heavy interest burdens, and allows the company to absorb shocks while pursuing strategic initiatives.

Positive Operating Cash Flow And Strong Cash ConversionPositive operating cash flow and a cash conversion ratio above 2x indicate underlying earnings quality and capacity to fund working capital and operations from internal cash. Even with profit headwinds, solid cash conversion supports continued operations and potential dividend or reinvestment capacity.

Relatively Strong Gross Profit MarginA near-37% gross margin shows the business retains healthy spread above direct costs, providing structural room to absorb SG&A and support margin recovery. This cost structure advantage can underpin long-term profitability if top-line pressures are addressed.

Bears Say

Declining Revenue TrendA multi-billion yen revenue decline reflects weakening demand or market share loss in packaged foods. Persistent top-line contraction erodes operating leverage, strains the ability to cover fixed costs, limits scale benefits, and reduces internal funds for growth or restructuring.

Negative Profitability And Weak Return On EquityNegative net margins and ROE indicate current operations are destroying shareholder value. Sustained unprofitability weakens retained earnings, undermines investor returns, and forces management to choose between costly external financing or aggressive cost and portfolio actions to restore profitability.

Declining Free Cash Flow And Weak FCF ConversionNegative FCF growth and poor FCF-to-net-income conversion constrain the firm's ability to fund capex, pay dividends, or reduce costs without external financing. Over months, this limits strategic flexibility and makes the company vulnerable if revenue or margins fail to recover.

2876 FAQ

What was Delsole Corporation’s price range in the past 12 months?

Delsole Corporation lowest stock price was ¥370.00 and its highest was ¥520.00 in the past 12 months.

What is Delsole Corporation’s market cap?

Delsole Corporation’s market cap is ¥4.22B.

When is Delsole Corporation’s upcoming earnings report date?

Delsole Corporation’s upcoming earnings report date is May 14, 2026 which is in 68 days.

How were Delsole Corporation’s earnings last quarter?

Delsole Corporation released its earnings results on Feb 13, 2026. The company reported ¥28.57 earnings per share for the quarter, beating the consensus estimate of N/A by ¥28.57.

Is Delsole Corporation overvalued?

According to Wall Street analysts Delsole Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Delsole Corporation pay dividends?

Delsole Corporation pays a Annually dividend of ¥12 which represents an annual dividend yield of 3.37%. See more information on Delsole Corporation dividends here

What is Delsole Corporation’s EPS estimate?

Delsole Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Delsole Corporation have?

Delsole Corporation has 9,105,290 shares outstanding.

What happened to Delsole Corporation’s price movement after its last earnings report?

Delsole Corporation reported an EPS of ¥28.57 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.564%.

Which hedge fund is a major shareholder of Delsole Corporation?

Currently, no hedge funds are holding shares in JP:2876

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Delsole Corporation

Delsole Corporation engages in the food service business in Japan and internationally. It operates through Food Manufacturing, Trading, Food Service, and International divisions. The company offers pizza crust and dough products; bread products, including naan, focaccia, tortilla, pita, and biscuits; shredded cheese; and cheese fry and naan dog snack products to supermarket chains and various food service companies. It also trades in pizza and basil sauces, and curries; olives and jalapenos; meat and chicken products comprising pepperoni, Italian sausages, taco meat, chicken sticks, chicken drops, and spicy chicken drops. In addition, the company operates restaurants and department store food counters, as well as provides take out and home delivery services. Delsole Corporation distributes its products under the Del Sole label. The company was formerly known as JC Comsa Corporation. Delsole Corporation was incorporated in 1964 and is headquartered in Tokyo, Japan.