Ishii Food Co., Ltd. (2894) AI Stock Analysis

• Market Cap: ¥5.77B
• Dividend Yield: 1.22%
• Average Volume (3M): 8.71K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.21
• Revenue Growth: 1.52%
• EPS Growth: 28.70%
• Country: JP
• Employees: 388
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 4.59
• Shares Outstanding: 18,392,000
• 10 Day Avg. Volume: 10,870
• 30 Day Avg. Volume: 8,710
• PEG Ratio: -0.46
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -11.07
• 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: 66 Neutral
• Price Target: ¥375.00 ▲(15.38% Upside)

Ishii Food Co., Ltd. has a solid financial foundation with strong revenue growth and operational efficiency. However, challenges with profitability fluctuations and cash flow stability, along with neutral technical indicators, moderate the overall score. The valuation is fair, providing a balanced outlook for potential investors.

Positive Factors

Revenue growth trend

Consistent multi‑year revenue expansion indicates growing product demand and distribution penetration in Japan's packaged foods market. Durable top‑line growth supports scale advantages, reinvestment in product development and R&D, and buffers against input cost shocks over the coming months.

Margin improvement and operational efficiency

Relatively strong gross margins plus improving EBIT/EBITDA margins point to effective cost controls, pricing discipline and favorable product mix. Sustained operational efficiency enhances long‑term profitability and cash generation, enabling reinvestment and resilience to commodity cost volatility.

Robust balance sheet equity base

A strong equity ratio and overall stable balance sheet provide financial flexibility to fund capex, working capital and product initiatives. This reduces solvency risk, supports creditworthiness and allows the firm to absorb demand shocks or pursue steady strategic investments over time.

Negative Factors

Weak cash conversion

Inconsistent operating cash flow and negative free cash flow growth show that reported earnings are not reliably converting to cash. This limits self‑funding for capital projects, dividends or debt paydown and may increase dependency on external financing, constraining strategic flexibility.

Profitability volatility

Fluctuating net margins reflect sensitivity to input costs, product mix shifts or nonrecurring items. Persistent margin volatility reduces earnings predictability, complicates capital allocation and budgeting decisions, and can limit management's ability to deliver stable returns or fund long‑term initiatives.

Rising total debt

An upward trend in total debt increases leverage risk and could raise interest burdens or tighten covenants. Combined with inconsistent cash generation, higher debt magnifies sensitivity to rate moves, reduces financial flexibility and may force deeper cost or capital allocation tradeoffs over the medium term.

Ishii Food Co., Ltd. Business Overview & Revenue Model

Company Description

Ishii Food Co., Ltd. engages in the manufacture and sale of food products in Japan. The company provides processed meat foods, side dishes, new year dishes, emergency foods, and health-conscious foods. It offers its products to retailers and consumers through customer service department and mail-order sales services. The company was founded in 1945 and is headquartered in Funabashi, Japan.

How the Company Makes Money

Ishii Food Co., Ltd. generates revenue through multiple streams, including the sale of its processed food products to supermarkets, convenience stores, and food service providers. The company also capitalizes on its strong brand presence by offering private label products for various retail partners. Key revenue drivers include the growing demand for convenient meal options, which has led to an increase in sales of ready-to-eat meals and frozen foods. Additionally, Ishii Food benefits from strategic partnerships with local suppliers and distributors, which enhance its supply chain efficiency and market reach. The company invests in product innovation and marketing to attract new customers and retain existing ones, further contributing to its overall financial performance.

Ishii Food Co., Ltd. Financial Statement Overview

Summary

Ishii Food Co., Ltd. shows strong revenue growth and operational efficiency, but faces challenges with profitability fluctuations and cash flow stability. The balance sheet is solid, though debt management needs attention.

Income Statement

Ishii Food Co., Ltd. has shown a positive trend in revenue growth, with a notable increase over the past five years. The gross profit margin has remained relatively strong, reflecting efficient cost management. However, the net profit margin has fluctuated, indicating some volatility in profitability. The EBIT and EBITDA margins have improved, demonstrating enhanced operational efficiency. Overall, the income statement reveals a company on a growth trajectory, though with some profitability inconsistencies.

Balance Sheet

The company's balance sheet indicates a stable financial position, with a reasonable debt-to-equity ratio suggesting manageable leverage. The return on equity is positive, reflecting profitable use of equity. The equity ratio is robust, indicating financial stability and a strong equity base. However, the increase in total debt over time poses a potential risk that should be monitored. Overall, the balance sheet reflects a solid financial foundation with moderate leverage concerns.

Cash Flow

Ishii Food Co., Ltd. exhibits a mixed cash flow performance. The operating cash flow has been inconsistent, and the free cash flow growth rate is concerning due to negative values in recent years. The operating cash flow to net income ratio suggests that not all net income is translating into cash flow, indicating potential cash management issues. Although there is some cash flow stability, improvements are needed to ensure sustainable cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.88B	10.87B	10.49B	9.55B	8.83B	8.31B
Gross Profit	3.70B	3.63B	3.55B	3.02B	2.85B	2.56B
EBITDA	869.68M	764.86M	793.15M	485.43M	299.70M	-471.84M
Net Income	347.48M	287.88M	471.51M	308.90M	16.42M	-798.16M
Balance Sheet
Total Assets	7.96B	7.66B	8.10B	6.71B	6.04B	6.45B
Cash, Cash Equivalents and Short-Term Investments	2.18B	1.91B	2.46B	1.94B	2.02B	2.58B
Total Debt	1.97B	1.99B	1.95B	1.92B	1.75B	2.12B
Total Liabilities	4.11B	3.81B	4.67B	3.83B	3.48B	3.81B
Stockholders Equity	3.85B	3.85B	3.42B	2.88B	2.56B	2.64B
Cash Flow
Free Cash Flow	0.00	-457.64M	638.56M	-15.52M	-121.37M	-51.27M
Operating Cash Flow	0.00	117.57M	1.25B	341.45M	155.12M	89.00M
Investing Cash Flow	0.00	-665.84M	-611.43M	-545.77M	-277.32M	-120.01M
Financing Cash Flow	0.00	-97.65M	-122.47M	125.42M	-434.29M	125.65M

Ishii Food Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 325.00
• 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:2894, the sentiment is Positive. The current price of 325 is below the 20-day moving average (MA) of 338.10, below the 50-day MA of 329.16, and above the 200-day MA of 317.84, indicating a bullish trend. The MACD of 3.97 indicates Positive momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 27.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2894.

Ishii Food Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2286	76 Outperform	¥6.70B	4.18	―	3.10%	-2.78%	331.41%
2911	68 Neutral	¥4.22B	15.82	―	1.55%	-1.00%	31.15%
2894	66 Neutral	¥5.77B	14.06	―	1.22%	1.52%	28.70%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2872	59 Neutral	¥3.25B	112.60	―	0.93%	11.75%	-17.13%
2876	51 Neutral	¥4.04B	-4.24	―	3.37%	-15.71%	-293.44%
2293	47 Neutral	¥5.96B	-13.67	―	―	-3.27%	-108.33%