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

• Market Cap: ¥19.43B
• Dividend Yield: 2.98%
• Average Volume (3M): 6.83K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.67
• Revenue Growth: -0.73%
• EPS Growth: 23.36%
• Country: JP
• Employees: 423
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -47.81
• Shares Outstanding: 4,942,868
• 10 Day Avg. Volume: 9,210
• 30 Day Avg. Volume: 6,830
• 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: ¥4,259.00 ▲(21.86% Upside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

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.

Positive Factors

Stable industrial demand

Nihon Shokuhin's core business of processing agricultural raw materials into starches and ingredients serves stable, non-cyclical end markets such as food & beverage and other industrial customers. That recurring industrial demand supports predictable revenue and reduces sensitivity to short-term market swings.

Multi-year revenue expansion

The company recorded a sustained top-line increase through 2021–2024, indicating successful product adoption and scale gains across customers. Multi-year revenue expansion suggests durable customer relationships and manufacturing utilization that support mid-term revenue resilience despite cyclical pressures.

Healthy equity position

A solid equity ratio and stable equity base provide a financial buffer against downturns and enhance the company's ability to fund operations and selective reinvestment. This balance sheet strength supports consistent shareholder returns and preserves strategic flexibility over the medium term.

Negative Factors

Margin volatility

Observed variability in gross, EBIT and net margins points to recurring cost control and pricing-pressure issues. Margin volatility undermines earnings predictability and can reduce free cash generation, complicating planning and limiting the company's ability to fund steady dividend or capex programs without operational fixes.

Negative free cash flow in 2025

The shift to negative free cash flow in 2025 indicates a weakening in converting profits to cash. If persistent, FCF deficits constrain capital expenditure, dividend sustainability and require external financing, increasing long-term funding costs and reducing strategic flexibility until cash conversion is restored.

Moderate leverage exposure

A moderate debt burden raises financial risk if earnings or cash flow deteriorate. Coupled with recent FCF weakness, leverage could amplify solvency pressure, increase interest costs, and limit ability to invest or weather shocks unless management reduces leverage or materially improves operating cash generation.

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

Company Description

Nihon Shokuhin Kako Co., Ltd. engages in the manufacture and sale of processed corn products and related secondary processed products in Japan. It offers corn starch and tapioca starch for food and industrial use; and waxy starch. The company also provides corn and starch syrup, high maltose syrup, malto-oligosaccharide, powdered malto-oligosaccharide, gluco-oligosaccharide, nigerooligosaccharide, isomaltooligosaccharide, glucose, and isomerized liquid sugar; dietary fibers; and other edible processed food materials. In addition, it offers cyclodextrin, glucose, maltose hydrate products, and malto-oligosaccharide derivatives; and by products, such as corn salad oil, corn steep liquor, gluten meal, and gluten feed. The company was incorporated in 1948 and is headquartered in Tokyo, Japan. Nihon Shokuhin Kako Co., Ltd. operates as a subsidiary of Mitsubishi Corporation.

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

Nihon Shokuhin Kako Co., Ltd. shows solid revenue growth and stable shareholder returns. However, fluctuations in profit margins and recent negative cash flow highlight areas needing improvement in cost management and operational efficiency. The balance sheet is robust, 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 3495.00
• 50DMA: Negative
• 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 Neutral. The current price of 3495 is below the 20-day moving average (MA) of 3915.50, below the 50-day MA of 4017.30, and below the 200-day MA of 3580.53, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2935	74 Outperform	¥15.36B	11.95	―	2.16%	1.28%	18.81%
2903	68 Neutral	¥22.01B	21.22	―	1.74%	7.66%	2.64%
2892	64 Neutral	¥19.43B	16.71	―	2.98%	-0.73%	23.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2923	62 Neutral	¥38.28B	12.29	―	0.80%	8.19%	42.84%
2904	59 Neutral	¥13.93B	34.48	―	1.61%	0.48%	-34.95%
2910	46 Neutral	¥37.25B	311.33	―	1.65%	-1.17%	-84.81%