Delsole Corporation (2876) AI Stock Analysis

• Market Cap: ¥3.74B
• Dividend Yield: 3.65%
• Average Volume (3M): 2.57K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.22
• Revenue Growth: -13.39%
• EPS Growth: -170.53%
• Country: JP
• Employees: 302
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): -32.45
• Shares Outstanding: 9,105,290
• 10 Day Avg. Volume: 2,670
• 30 Day Avg. Volume: 2,566
• 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: 62 Neutral
• Price Target: ¥441.00 ▲(7.82%Upside)

Delsole Corporation's financial performance is stable but challenged by declining profitability, which is the most significant factor. Technical analysis suggests neutrality with some bearish signs, while valuation issues due to a negative P/E ratio are concerning. The relatively high dividend yield is a positive factor for income-focused investors.

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
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: 409.00
• 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 Positive. The current price of 409 is above the 20-day moving average (MA) of 403.00, below the 50-day MA of 410.28, and below the 200-day MA of 421.86, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 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
2894	69 Neutral	¥5.27B	18.06		1.28%	3.60%	-38.49%
Sector *	68 Neutral	S$3.41B	16.78	-11.82%	6.53%	5.14%	-8.01%
2911	65 Neutral	¥4.10B	17.33		1.56%	-1.00%	2.29%
2877	64 Neutral	¥8.92B	23.17		1.63%	2.93%	-6.54%
2876	62 Neutral	¥3.74B	8.31		3.65%	-13.39%	-170.53%
2291	46 Neutral	¥3.57B	―		―	-2.27%	-526.69%