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

• Market Cap: ¥16.60B
• Dividend Yield: 2.81%
• Average Volume (3M): 10.07K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.61
• Revenue Growth: -5.97%
• EPS Growth: -37.27%
• Country: JP
• Employees: 423
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Packaged Foods
• EPS (TTM): 29.17
• Shares Outstanding: 6,400,000
• 10 Day Avg. Volume: 5,730
• 30 Day Avg. Volume: 10,073
• PEG Ratio: 0.77
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,774.00
• Price Target Upside: 14.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥3,774.00 ▲(14.36%Upside)

The stock's overall score is bolstered by strong technical momentum and attractive valuation. However, financial performance is tempered by margin variability and recent cash flow challenges, which need strategic management to sustain growth.

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

Company Description

Nihon Shokuhin Kako Co., Ltd. (2892) is a Japan-based company primarily engaged in the manufacturing and sale of food ingredients. The company specializes in producing starches, sweeteners, and other food additives used across various sectors, including food and beverage, pharmaceuticals, and industrial applications. With a commitment to quality and innovation, Nihon Shokuhin Kako plays a crucial role in supplying essential ingredients that enhance the texture, flavor, and functionality of consumer products.

How the Company Makes Money

Nihon Shokuhin Kako Co., Ltd. generates revenue primarily through the production and sale of its starches and sweeteners, which are used extensively in the food and beverage industry as well as in pharmaceuticals and industrial applications. The company leverages its technological expertise to create high-quality, functional ingredients that meet diverse customer needs. Key revenue streams include sales to food manufacturers, pharmaceutical companies, and other industrial sectors that require specialized ingredients. Strategic partnerships and a strong distribution network further support the company's earnings by ensuring a steady demand for its products both domestically and internationally.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	62.70B	66.68B	64.61B	50.61B	45.06B
Gross Profit	10.03B	10.54B	11.35B	8.64B	8.68B
EBITDA	4.80B	5.69B	6.02B	4.08B	3.88B
Net Income	1.53B	2.43B	2.60B	1.37B	1.23B
Balance Sheet
Total Assets	50.12B	46.43B	46.50B	39.69B	36.22B
Cash, Cash Equivalents and Short-Term Investments	241.00M	214.00M	411.00M	198.00M	177.00M
Total Debt	10.73B	7.90B	11.09B	7.60B	5.01B
Total Liabilities	21.69B	22.10B	23.81B	18.64B	16.30B
Stockholders Equity	28.42B	24.33B	22.70B	21.05B	19.93B
Cash Flow
Free Cash Flow	-1.83B	3.72B	-3.13B	-2.38B	2.27B
Operating Cash Flow	3.69B	6.77B	-533.00M	292.00M	3.85B
Investing Cash Flow	-5.76B	-2.46B	-2.24B	-2.41B	-2.12B
Financing Cash Flow	2.10B	-4.51B	2.98B	2.14B	-1.78B

Nihon Shokuhin Kako Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 3300 is above the 20-day moving average (MA) of 3292.75, above the 50-day MA of 3258.82, and above the 200-day MA of 2768.27, indicating a bullish trend. The MACD of 21.27 indicates Positive momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 84.26 is Negative, 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
2892	75 Outperform	¥16.60B	10.81		2.81%	-5.97%	-37.27%
2814	69 Neutral	¥14.02B	15.13		1.70%	4.25%	-18.59%
Sector *	66 Neutral	£10.46B	8.44	3.35%	302.87%	-1.42%	18.13%
2904	63 Neutral	¥13.60B	16.27		1.90%	0.59%	-15.61%
2806	62 Neutral	¥14.22B	25.71		1.96%	4.72%	20.48%
2937	57 Neutral	¥14.90B	42.39		2.18%	1.59%	-57.66%
2901	57 Neutral	¥13.71B	24.88		0.32%	-2.04%	―