Delsole Corporation (2876) AI Stock Analysis

• Market Cap: ¥4.09B
• Dividend Yield: 3.34%
• Average Volume (3M): 5.03K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.30
• Revenue Growth: -13.61%
• EPS Growth: -218.40%
• Country: JP
• Employees: 302
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -1.07
• Shares Outstanding: 9,105,290
• 10 Day Avg. Volume: 4,770
• 30 Day Avg. Volume: 5,026
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: ¥448.00
• Price Target Upside: -0.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ¥444.00 ▼(-1.11% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and negative profitability, which weigh heavily on the score. Technical analysis provides some positive momentum, but valuation concerns due to negative earnings offset the technical strengths. The lack of earnings call data and corporate events means these factors do not contribute to the score.

Delsole Corporation Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Delsole Corporation generates revenue through multiple channels, primarily by selling its products directly to consumers via retail partnerships and e-commerce platforms. The company has established key partnerships with major retailers, enabling widespread distribution and brand visibility. Additionally, Delsole engages in licensing agreements for its proprietary technologies, creating another significant revenue stream. The company also invests in research and development to create new products, which helps in maintaining a competitive edge and catering to emerging market trends, ultimately driving sales growth.

Delsole Corporation Financial Statement Overview

Summary

Delsole Corporation faces significant challenges with declining revenues and profitability, as evidenced by negative net income and margins. Despite a strong equity position and low leverage, the company struggles with cash flow generation, impacting its financial flexibility. The company needs to address operational inefficiencies to improve profitability and cash flow.

Income Statement

The company has experienced a decline in total revenue over the past year, with a significant drop from 17.78 billion to 15.40 billion. Gross profit margin stands at 36.98%, which is relatively strong, but the net profit margin is negative at -2.75%, indicating a loss. EBIT margin is 3.64%, showing operational challenges. The EBITDA margin is negative, suggesting issues with core earnings before depreciation and amortization.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.02, indicating low leverage. The equity ratio is 59.74%, showing a strong equity base relative to total assets. However, the return on equity is negative at -6.91%, highlighting profitability concerns despite the strong equity position.

Cash Flow

Operating cash flow is positive, but there is a decline compared to the previous year. The free cash flow growth rate is negative, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is 2.14, suggesting good cash conversion, but the free cash flow to net income ratio is negative, reflecting cash flow issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	-241.94M	1.32B	767.47M	1.48B	855.37M
Net Income	-422.80M	599.45M	302.97M	641.69M	251.36M
Balance Sheet
Total Assets	10.24B	10.74B	11.03B	10.63B	10.66B
Cash, Cash Equivalents and Short-Term Investments	2.74B	2.26B	1.65B	1.60B	974.39M
Total Debt	150.00M	210.00M	470.00M	550.00M	1.13B
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: Positive
• Last Price: 449.00
• 50DMA: Positive
• 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:2876, the sentiment is Positive. The current price of 449 is above the 20-day moving average (MA) of 438.30, above the 50-day MA of 429.24, and above the 200-day MA of 423.64, indicating a bullish trend. The MACD of 5.98 indicates Negative momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2876.

Delsole Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2911	70 Outperform	4.17B	16.33	2.92%	1.53%	-1.29%	4.30%
2894	69 Neutral	5.37B	15.22	8.04%	1.26%	2.68%	11.55%
2877	59 Neutral	9.00B	21.52	2.39%	1.61%	3.62%	34.09%
2876	58 Neutral	¥4.09B	8.31		3.34%	-13.61%	-218.40%
2291	49 Neutral	3.65B	-9.31	-34.65%	―	-2.18%	-1105.39%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%