Delsole Corporation (2876) AI Stock Analysis

• Market Cap: ¥3.61B
• Dividend Yield: 3.78%
• Average Volume (3M): 14.11K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.21
• Revenue Growth: -13.39%
• EPS Growth: -170.53%
• Country: JP
• Employees: 302
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): -32.45
• Shares Outstanding: 9,105,290
• 10 Day Avg. Volume: 3,250
• 30 Day Avg. Volume: 14,110
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

• Rating: 56 Neutral
• Price Target: ¥420.00 ▲(6.06%Upside)

Delsole Corporation's overall stock score reflects financial stability but is heavily impacted by profitability issues and weak technical indicators. The negative P/E ratio further underscores valuation concerns, despite a reasonable dividend yield.

Delsole Corporation Business Overview & Revenue Model

Company Description

Delsole Corporation (2876) is a Japan-based company primarily engaged in the food manufacturing sector. The company specializes in the production and distribution of pasta and related food products. Delsole Corporation operates across various segments, including processed foods and frozen foods, catering to both domestic and international markets with its diverse product offerings.

How the Company Makes Money

Delsole Corporation generates revenue through the sale of its pasta and related food products, which are distributed across multiple channels including retail outlets, food service operators, and direct-to-consumer platforms. The company's revenue streams are bolstered by its strong distribution network and partnerships with major retailers and distributors. Additionally, Delsole Corporation invests in product innovation and marketing strategies to enhance its market presence and drive sales growth. The company's earnings are also influenced by its ability to manage production costs and maintain efficient supply chain operations.

Delsole Corporation Financial Statement Overview

Summary

Delsole Corporation shows financial stability with a strong equity base and manageable debt. However, profitability challenges exist due to declining net income and fluctuating revenue trends, affecting overall financial performance.

Income Statement

Delsole Corporation has experienced fluctuating revenue trends with a decline in recent years. The gross profit margin has been relatively stable, indicating effective cost management. However, net profit margin has deteriorated significantly, moving into negative territory recently, highlighting profitability challenges. EBIT and EBITDA margins have also shown volatility, reflecting inconsistent operational efficiency.

Balance Sheet

The company maintains a strong equity base with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is modest, suggesting manageable leverage levels. However, there's a trend of decreasing stockholders’ equity over time, which could be a concern if it continues.

Cash Flow

Operating cash flow remains positive, supporting liquidity. However, free cash flow growth has been inconsistent, with significant fluctuations over the years. The operating cash flow to net income ratio is favorable, showing that operations are generating cash effectively, but declining net income affects the sustainability of cash flow.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
15.40B	17.78B	16.89B	15.46B	16.63B
	Gross Profit
5.70B	6.78B	6.21B	6.17B	6.11B
	EBIT
561.16M	1.22B	417.82M	538.63M	499.55M
	EBITDA
-241.94M	1.32B	767.47M	1.48B	855.37M
	Net Income Common Stockholders
-422.80M	599.45M	302.97M	641.69M	251.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.74B	2.26B	1.65B	1.60B	974.39M
	Total Assets
10.24B	10.74B	11.03B	10.63B	10.66B
	Total Debt
150.00M	210.00M	470.00M	550.00M	1.13B
	Net Debt
-2.59B	-2.05B	-1.18B	-1.05B	155.61M
	Total Liabilities
4.12B	4.11B	4.95B	4.66B	5.24B
	Stockholders Equity
6.12B	6.63B	6.08B	5.97B	5.42B
Cash Flow		Free Cash Flow
536.74M	797.12M	283.92M	1.26B	-91.14M
	Operating Cash Flow
903.43M	1.11B	395.52M	1.64B	284.90M
	Investing Cash Flow
-254.72M	-152.37M	-67.12M	-343.70M	-382.74M
	Financing Cash Flow
-168.46M	-346.60M	-276.67M	-671.07M	-317.82M

Delsole Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 396.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2876, the sentiment is Negative. The current price of 396 is below the 20-day moving average (MA) of 401.90, below the 50-day MA of 413.88, and below the 200-day MA of 422.91, indicating a bearish trend. The MACD of -4.65 indicates Negative momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 44.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2876.

Delsole Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2894	69 Neutral	¥5.28B	18.12		1.28%	3.60%	-38.52%
2911	68 Neutral	¥4.19B	17.72		1.53%	-1.00%	2.29%
Sector *	65 Neutral	$8.82B	14.91	4.71%	6.22%	3.60%	-2.66%
2877	58 Neutral	¥8.76B	22.77		1.66%	2.93%	-6.54%
2876	56 Neutral	¥3.61B	8.31		3.78%	-13.39%	-170.53%
2291	45 Neutral	¥3.49B	―		―	-2.27%	-526.69%