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

• Market Cap: ¥16.08B
• Dividend Yield: 2.91%
• Average Volume (3M): 25.03K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.62
• Revenue Growth: -5.97%
• EPS Growth: -37.27%
• Country: JP
• Employees: 423
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Packaged Foods
• EPS (TTM): 310.47
• Shares Outstanding: 6,400,000
• 10 Day Avg. Volume: 39,190
• 30 Day Avg. Volume: 25,026
• PEG Ratio: 0.82
• Price to Book (P/B): 0.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• 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 manufacture and sale of food products. The company operates in various sectors including the production of starches, sweeteners, and related processed food ingredients. Nihon Shokuhin Kako is known for its high-quality products used in food manufacturing, catering to both domestic and international markets. With a strong focus on innovation and quality, the company plays a significant role in the food ingredients industry.

How the Company Makes Money

Nihon Shokuhin Kako Co., Ltd. generates revenue by manufacturing and selling a range of starches and sweeteners that are essential ingredients in the food production industry. The company's key revenue streams include the sale of these products to food manufacturers who utilize them in the production of various food items, including confectionery, beverages, and processed foods. Additionally, Nihon Shokuhin Kako may engage in partnerships or collaborations with other food companies to enhance its product offerings and market reach. The company's earnings are influenced by factors such as raw material costs, production efficiency, and the demand for food ingredients both domestically and internationally.

Nihon Shokuhin Kako Co., Ltd. Financial Statement Overview

Summary

Nihon Shokuhin Kako Co., Ltd. presents a solid financial profile with strong revenue growth and improved cash flow metrics. While profitability margins have slightly decreased, the company maintains a healthy capital structure with low leverage. The focus should be on enhancing profitability margins and maintaining cash flow improvements to support future growth.

Income Statement

The company shows solid revenue growth with a 31.7% increase from 2022 to 2023. Gross profit margin remains stable, although a slight decline to 15.8% in 2024 from 17.6% in 2023. EBIT and EBITDA margins are healthy, indicating efficient operations, but net profit margin has slightly decreased from 4.0% to 3.6% in the recent year. Overall, the income statement reflects strong growth but a slight decline in profitability margins.

Balance Sheet

The debt-to-equity ratio has improved over the years, now at 0.32, indicating a solid capital structure. The equity ratio is high at 52.4%, suggesting financial stability. Return on equity stands at 10.0%, which is a good indicator of profitability. Overall, the balance sheet is strong with good leverage management, though there is room for further improvement in ROE.

Cash Flow

The company has significantly improved its free cash flow, turning positive in 2024 with growth of 218.7%. The operating cash flow to net income ratio is robust at 2.78, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 1.53, which is a positive indicator of cash flow health. While cash flow stability has improved, continued focus on sustaining free cash flow growth is advisable.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
16.60B	66.68B	64.61B	50.61B	45.06B	45.27B
	Gross Profit
2.78B	10.54B	11.35B	8.64B	8.68B	7.36B
	EBIT
641.00M	2.56B	3.54B	1.50B	1.52B	12.00M
	EBITDA
1.30B	5.69B	6.02B	4.08B	3.88B	2.42B
	Net Income Common Stockholders
570.00M	2.43B	2.60B	1.37B	1.23B	238.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10B	214.00M	411.00M	198.00M	177.00M	221.00M
	Total Assets
43.03B	46.43B	46.50B	39.69B	36.22B	34.68B
	Total Debt
11.71B	7.90B	10.99B	7.49B	4.90B	6.64B
	Net Debt
9.61B	7.69B	10.58B	7.29B	4.72B	6.42B
	Total Liabilities
22.43B	22.10B	23.81B	18.64B	16.30B	15.97B
	Stockholders Equity
20.59B	24.33B	22.70B	21.05B	19.93B	18.70B
Cash Flow		Free Cash Flow
0.00	3.72B	-3.13B	-2.38B	2.27B	-500.00M
	Operating Cash Flow
0.00	6.77B	-533.00M	292.00M	3.85B	2.46B
	Investing Cash Flow
0.00	-2.46B	-2.24B	-2.41B	-2.12B	-2.98B
	Financing Cash Flow
0.00	-4.51B	2.98B	2.14B	-1.78B	516.00M

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: 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 3300 is above the 20-day moving average (MA) of 3198.35, above the 50-day MA of 2837.86, and above the 200-day MA of 2695.25, indicating a bullish trend. The MACD of 160.50 indicates Positive momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 25.68 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
2892	75 Outperform	¥16.08B	10.53		2.91%	-5.97%	-37.27%
2814	71 Outperform	¥13.91B	15.00		1.80%	4.25%	-18.59%
Sector *	65 Neutral	$8.88B	15.05	4.75%	203.76%	3.54%	-2.50%
2904	64 Neutral	¥14.43B	17.26		1.53%	0.59%	-15.61%
2806	61 Neutral	¥14.23B	25.73		1.95%	4.72%	20.48%
2937	57 Neutral	¥13.36B	38.02		2.43%	1.59%	-57.66%
2901	56 Neutral	¥13.34B	25.04		0.31%	-2.04%	―