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

• Market Cap: ¥18.37B
• Dividend Yield: 2.98%
• Average Volume (3M): 6.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• 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: ¥4,130.00 ▲(18.17% 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

Revenue Growth

Multi-year revenue expansion through 2024 indicates durable customer demand and successful market penetration in the food-ingredients segment. The 2025 decline appears as a setback but does not erase prior growth momentum, implying the company retains core sales capacity and potential for mid-term recovery if operational execution improves.

Balance Sheet Strength

A healthy equity ratio and stable equity position provide financial resilience, allowing the company to absorb cyclical shocks and maintain strategic flexibility. This foundational strength supports continued investment in operations or targeted capex and reduces bankruptcy risk, underpinning longer-term creditor and supplier confidence.

Business Model & Market Position

The firm's focus on processing agricultural raw materials into essential industrial food ingredients creates recurring B2B demand from food and beverage producers. This specialized, low-cyclicality niche supports stable revenue streams, entrenched customer relationships, and structural demand tied to food production rather than discretionary trends.

Negative Factors

Margin Volatility

Fluctuating gross and net margins signal inconsistent cost control and exposure to input-cost variability (e.g., agricultural commodities). Persistent margin volatility undermines predictable earnings and reduces the firm's ability to sustain operating leverage, making long-term planning, capex allocation, and dividend consistency more challenging.

Cash Flow Weakness

A recent shift to negative free cash flow after prior positive years indicates rising capital requirements or weaker operating cash generation. Sustained FCF weakness can limit reinvestment, constrain dividend or buyback programs, and force reliance on external financing, reducing strategic optionality and increasing financial vulnerability over the medium term.

Moderate Leverage

Moderate debt-to-equity raises financial risk if earnings or cash flows deteriorate, increasing interest obligations and reducing flexibility. In combination with margin swings and weaker FCF, leverage can meaningfully limit capacity for opportunistic investments or absorb shocks, making prudent balance-sheet management crucial for durable stability.

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

null

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	50.80B	46.73B	46.65B	39.96B	36.42B
Cash, Cash Equivalents and Short-Term Investments	245.00M	241.00M	214.00M	411.00M	198.00M	177.00M
Total Debt	11.46B	10.89B	7.97B	11.09B	7.60B	5.01B
Total Liabilities	22.84B	22.37B	22.40B	23.95B	18.90B	16.49B
Stockholders Equity	28.82B	28.42B	24.33B	22.70B	21.06B	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: Negative
• Last Price: 3495.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3495 is below the 20-day moving average (MA) of 3855.25, below the 50-day MA of 3941.70, and below the 200-day MA of 3623.75, indicating a neutral trend. The MACD of -42.63 indicates Positive momentum. The RSI at 41.53 is Neutral, neither overbought nor oversold. The STOCH value of 51.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥14.61B	24.48	―	2.16%	1.28%	18.81%
2903	68 Neutral	¥20.11B	10.62	―	1.74%	7.66%	2.64%
2892	64 Neutral	¥18.37B	-20.91	―	2.98%	-0.73%	23.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2923	62 Neutral	¥38.89B	4.55	―	0.80%	8.19%	42.84%
2904	59 Neutral	¥14.01B	4.68	―	1.61%	0.48%	-34.95%
2910	46 Neutral	¥37.28B	21.75	―	1.65%	-1.17%	-84.81%