Nihon Shokuhin Kako Co., Ltd. (2892) AI Stock Analysis

• Market Cap: ¥17.66B
• Dividend Yield: 3.54%
• Average Volume (3M): 11.29K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.71
• Revenue Growth: -0.73%
• EPS Growth: 23.36%
• Country: JP
• Employees: 423
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 128.30
• Shares Outstanding: 6,400,000
• 10 Day Avg. Volume: 19,040
• 30 Day Avg. Volume: 11,290
• PEG Ratio: -0.23
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -7.14
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥3,638.00 ▲(4.09% Upside)

The stock score is primarily driven by solid valuation metrics, with a low P/E ratio and attractive dividend yield. However, financial performance is hindered by margin fluctuations and recent cash flow issues. Technical analysis indicates short-term bearish momentum, but potential undervaluation and dividend yield provide a positive outlook.

Nihon Shokuhin Kako Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Shokuhin Kako Co., Ltd. (2892) is a Japanese company specializing in the production and distribution of processed food products. The company operates primarily in the food sector, focusing on the manufacturing of frozen foods, preserved foods, and various other food items that cater to both the retail and foodservice industries. With a commitment to quality and innovation, Nihon Shokuhin Kako aims to meet the diverse needs of consumers and businesses alike.

How the Company Makes Money

Nihon Shokuhin Kako generates revenue primarily through the sale of its processed food products, which include frozen meals, snacks, and other preserved foods. The company benefits from multiple revenue streams, including direct sales to retailers, partnerships with foodservice providers, and exports to international markets. Additionally, the company may engage in private label production for other brands, further diversifying its income. Significant partnerships with major supermarket chains and food distributors enhance its market reach and contribute to consistent sales growth. The company's focus on innovation in product development, along with its ability to adapt to changing consumer preferences, plays a critical role in driving its earnings.

Nihon Shokuhin Kako Co., Ltd. Financial Statement Overview

Summary

The company shows solid revenue growth but faces challenges with fluctuating margins and recent negative free cash flow. The balance sheet is stable, but leverage and cash flow issues require strategic focus.

Income Statement

The company has demonstrated solid revenue growth over the past few years, with a notable increase from 2021 to 2024. However, in 2025, a decline in revenue was observed. The gross profit margin and net profit margin have shown some fluctuations, indicating variability in cost control. The EBIT and EBITDA margins have also seen varying trends, suggesting some instability in operational efficiency. Overall, while the company shows potential with revenue growth, margins indicate room for improvement in managing costs and operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with a healthy equity ratio. However, the debt-to-equity ratio indicates a moderate level of leverage, which could pose a risk if not managed well. Return on equity has been relatively stable, suggesting consistent returns to shareholders. The balance sheet shows a solid foundation but highlights the need for careful management of leverage.

Cash Flow

Cash flow analysis reveals some concerns, particularly with the recent negative free cash flow in 2025, following a positive trend in prior years. The operating cash flow to net income ratio suggests adequate cash generation relative to net income, but the recent downturn in free cash flow highlights potential challenges in capital expenditure and operational cash management. The company needs to address these challenges to improve cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.29B	62.70B	66.68B	64.61B	50.61B	45.06B
Gross Profit	10.31B	10.03B	10.54B	11.35B	8.64B	8.68B
EBITDA	4.97B	4.80B	5.69B	6.02B	4.08B	3.88B
Net Income	1.59B	1.53B	2.43B	2.60B	1.37B	1.23B
Balance Sheet
Total Assets	51.66B	50.12B	46.43B	46.50B	39.69B	36.22B
Cash, Cash Equivalents and Short-Term Investments	245.00M	241.00M	214.00M	411.00M	198.00M	177.00M
Total Debt	11.46B	10.73B	7.90B	11.09B	7.60B	5.01B
Total Liabilities	22.84B	21.69B	22.10B	23.81B	18.64B	16.30B
Stockholders Equity	28.82B	28.42B	24.33B	22.70B	21.05B	19.93B
Cash Flow
Free Cash Flow	0.00	-1.83B	3.72B	-3.13B	-2.38B	2.27B
Operating Cash Flow	0.00	3.69B	6.77B	-533.00M	292.00M	3.85B
Investing Cash Flow	0.00	-5.76B	-2.46B	-2.24B	-2.41B	-2.12B
Financing Cash Flow	0.00	2.10B	-4.51B	2.98B	2.14B	-1.78B

Nihon Shokuhin Kako Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3495.00
• 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:2892, the sentiment is Positive. The current price of 3495 is below the 20-day moving average (MA) of 3536.00, below the 50-day MA of 3539.55, and above the 200-day MA of 3053.60, indicating a bullish trend. The MACD of 18.61 indicates Negative momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 32.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2892.

Nihon Shokuhin Kako Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2814	65 Neutral	¥10.24B	17.01	―	1.28%	6.33%	-0.73%
2892	64 Neutral	¥17.66B	12.07	―	3.54%	-0.73%	23.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2806	61 Neutral	¥14.65B	23.56	―	1.87%	2.59%	21.25%
2901	61 Neutral	¥13.42B	24.74	―	0.58%	4.28%	―
2904	59 Neutral	¥13.71B	18.29	―	1.62%	0.27%	-22.12%
2937	59 Neutral	¥15.86B	30.85	―	2.01%	3.00%	73.05%