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Nihon Shokuhin Kako Co., Ltd. (JP:2892)
:2892
Japanese Market
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Nihon Shokuhin Kako Co., Ltd. (2892) AI Stock Analysis

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JP:2892

Nihon Shokuhin Kako Co., Ltd.

(2892)

Rating:75Outperform
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. (2892) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNihon 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 MoneyNihon 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
65
Positive
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
72
Positive
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
58
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue62.70B66.68B64.61B50.61B45.06B
Gross Profit10.03B10.54B11.35B8.64B8.68B
EBITDA4.80B5.69B6.02B4.08B3.88B
Net Income1.53B2.43B2.60B1.37B1.23B
Balance Sheet
Total Assets50.12B46.43B46.50B39.69B36.22B
Cash, Cash Equivalents and Short-Term Investments241.00M214.00M411.00M198.00M177.00M
Total Debt10.73B7.90B11.09B7.60B5.01B
Total Liabilities21.69B22.10B23.81B18.64B16.30B
Stockholders Equity28.42B24.33B22.70B21.05B19.93B
Cash Flow
Free Cash Flow-1.83B3.72B-3.13B-2.38B2.27B
Operating Cash Flow3.69B6.77B-533.00M292.00M3.85B
Investing Cash Flow-5.76B-2.46B-2.24B-2.41B-2.12B
Financing Cash Flow2.10B-4.51B2.98B2.14B-1.78B

Nihon Shokuhin Kako Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3300.00
Price Trends
50DMA
3258.82
Positive
100DMA
2936.58
Positive
200DMA
2768.27
Positive
Market Momentum
MACD
21.27
Positive
RSI
58.69
Neutral
STOCH
84.26
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥16.60B10.81
2.81%-5.97%-37.27%
69
Neutral
¥14.02B15.13
1.70%4.25%-18.59%
66
Neutral
£10.46B8.443.35%302.87%-1.42%18.13%
63
Neutral
¥13.60B16.27
1.90%0.59%-15.61%
62
Neutral
¥14.22B25.71
1.96%4.72%20.48%
57
Neutral
¥14.90B42.39
2.18%1.59%-57.66%
57
Neutral
¥13.71B24.88
0.32%-2.04%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2892
Nihon Shokuhin Kako Co., Ltd.
3,320.00
466.86
16.36%
JP:2806
Yutaka Foods Corporation
2,039.00
76.45
3.90%
JP:2814
Sato Foods Industries Co., Ltd.
2,350.00
327.09
16.17%
JP:2901
Ishigaki Foods Co., Ltd.
631.00
420.60
199.90%
JP:2904
Ichimasa Kamaboko Co., Ltd.
738.00
-9.07
-1.21%
JP:2937
St.Cousair CO. LTD.
1,608.00
-640.80
-28.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 04, 2025