Nissin Foods Holdings Co (2897) AI Stock Analysis

• Market Cap: ¥856.80B
• Dividend Yield: 2.42%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.35
• Revenue Growth: 5.96%
• EPS Growth: 3.42%
• Country: JP
• Employees: 16,509
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 39.08
• Shares Outstanding: 297,584,500
• 10 Day Avg. Volume: 1,345,280
• 30 Day Avg. Volume: 1,265,270
• PEG Ratio: 1.14
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -61.60
• 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: ¥3,149.73
• Price Target Upside: 8.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥3,367.00 ▲(16.24%Upside)

Nissin Foods shows strong financial health with consistent revenue growth and solid profitability. While technical indicators present mixed signals, the overall valuation remains reasonable. The absence of earnings call and corporate event data limits further insights. The company's performance is robust, but attention to rising leverage and recent free cash flow challenges is advised.

Nissin Foods Holdings Co Business Overview & Revenue Model

Company Description

Nissin Foods Holdings Co., Ltd. (2897) is a leading Japanese food company primarily known for its pioneering role in the instant noodle industry. Founded in 1948, the company revolutionized the food sector with the creation of the world's first instant noodles, Chicken Ramen, in 1958, and later introduced Cup Noodles in 1971. Nissin operates across several segments, including instant noodles, frozen foods, chilled foods, and confectionery, with a global presence in markets such as the Americas, Asia, and Europe. The company's broad product portfolio and innovative approach have solidified its position as a household name in the convenience food industry.

How the Company Makes Money

Nissin Foods Holdings Co. generates revenue through the production and sale of a diverse range of food products, with a primary focus on instant noodles. The company's revenue streams are categorized into various segments, including the 'Instant Noodles' segment, which is the largest contributor, followed by 'Chilled and Frozen Foods' and 'Confectionery and Beverages.' Nissin leverages its strong brand recognition and global distribution network to sell its products in supermarkets, convenience stores, and online platforms. The company's earnings are further boosted by strategic partnerships and joint ventures, such as its collaborations with local food companies in different regions to adapt its products to local tastes and preferences. Nissin also invests in research and development to innovate and introduce new products, ensuring continued consumer interest and market competitiveness.

Nissin Foods Holdings Co Financial Statement Overview

Summary

Nissin Foods has demonstrated strong financial performance with consistent revenue and profit growth. Effective cost management is reflected in a healthy gross profit margin, while a stable net profit margin indicates solid profitability. The balance sheet is robust with a strong equity position, though rising leverage needs monitoring. Cash flows are strong, but recent capital expenditures have impacted free cash flow.

Income Statement

Nissin Foods has shown strong revenue growth over the past five years, with a compound annual growth rate (CAGR) in revenue of approximately 10.5%. The gross profit margin has remained healthy, averaging around 35% over the period, indicating effective cost management. The net profit margin has consistently been above 7%, with the latest at 7.08%, reflecting solid profitability. EBIT and EBITDA margins are stable, highlighting efficient operations. However, slight fluctuations in net income growth could indicate potential future risks.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of approximately 56% in the latest period. The debt-to-equity ratio has increased to 0.24, reflecting higher leverage, but remains manageable. Return on equity (ROE) has been consistently above 11%, indicating good returns for shareholders. However, the increase in debt suggests potential leverage risks that need monitoring.

Cash Flow

Nissin Foods exhibits strong operating cash flow generation, consistently covering net income, with an operating cash flow to net income ratio above 1.04 in the latest year. However, free cash flow turned negative in the most recent year, driven by higher capital expenditures, which could impact short-term liquidity. Despite this, the overall cash flow position remains strong, supported by robust operating cash inflows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	776.59B	732.93B	669.25B	569.72B	506.11B
Gross Profit	272.95B	258.63B	221.08B	194.50B	181.76B
EBITDA	98.58B	95.72B	76.52B	71.73B	69.92B
Net Income	55.02B	54.17B	44.76B	35.41B	40.83B
Balance Sheet
Total Assets	848.46B	812.38B	708.37B	683.42B	663.53B
Cash, Cash Equivalents and Short-Term Investments	73.04B	96.66B	98.16B	112.28B	97.18B
Total Debt	115.56B	34.85B	36.22B	44.91B	47.93B
Total Liabilities	336.56B	277.37B	240.43B	238.83B	242.09B
Stockholders Equity	475.53B	493.19B	430.43B	407.66B	384.02B
Cash Flow
Free Cash Flow	-13.62B	31.56B	39.11B	28.45B	39.82B
Operating Cash Flow	57.06B	94.12B	64.81B	52.94B	72.71B
Investing Cash Flow	-76.71B	-61.91B	-32.06B	-3.47B	-26.53B
Financing Cash Flow	-591.00M	-26.32B	-47.68B	-44.45B	-19.05B

Nissin Foods Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2896.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2897, the sentiment is Negative. The current price of 2896.5 is below the 20-day moving average (MA) of 2944.30, below the 50-day MA of 2981.13, and below the 200-day MA of 3368.89, indicating a bearish trend. The MACD of -26.32 indicates Positive momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 44.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2897.

Nissin Foods Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2897	74 Outperform	¥856.80B	15.75	11.20%	2.42%	5.96%	3.42%
2875	73 Outperform	$1.01T	15.57	13.14%	2.02%	3.80%	14.95%
2212	72 Outperform	$651.10B	17.70	8.78%	1.17%	4.25%	4.06%
Sector *	68 Neutral	¥197.01B	21.34	8.29%	2.27%	4.93%	0.97%
2269	67 Neutral	¥844.83B	16.53	6.71%	3.23%	4.39%	2.40%
2871	65 Neutral	€457.84B	18.56	9.55%	3.40%	3.23%	1.35%
2282	60 Neutral	¥483.79B	18.69	4.96%	2.74%	5.15%	-4.85%

Nissin Foods Holdings Co Corporate Events

Nissin Foods Announces Strategic Share Buyback

Nissin Foods Holdings Co., a prominent player in the food industry, has announced the acquisition of its own shares as part of a strategic financial maneuver. The company acquired 1,489,400 shares at a total cost of 4,423,313,050 yen through the Tokyo Stock Exchange, with plans to acquire up to 9,500,000 shares by November 2025. This move is likely to impact the company’s stock value and market positioning, reflecting a commitment to enhancing shareholder value.

The most recent analyst rating on (JP:2897) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Nissin Foods Holdings Co stock, see the JP:2897 Stock Forecast page.

Nissin Foods Announces Share Buyback to Enhance Shareholder Value

Nissin Foods Holdings Co., Ltd. announced the acquisition of 1,455,100 of its own common shares on the Tokyo Stock Exchange, amounting to approximately 4.56 billion yen, as part of a broader plan to acquire up to 9.5 million shares by November 2025. This move is expected to enhance shareholder value and reflects the company’s strategic financial management, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (JP:2897) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Nissin Foods Holdings Co stock, see the JP:2897 Stock Forecast page.

Nissin Foods Announces Share Buyback to Enhance Shareholder Value

Nissin Foods Holdings Co. has announced a strategic decision to acquire up to 9.5 million of its own shares, representing 3.22% of its outstanding shares, as part of its Mid-to Long-Term Growth Strategy 2030. This move aims to enhance shareholder returns, improve capital efficiency, and maintain financial discipline, thereby contributing to the company’s overall corporate value.

Nissin Foods Reports Revenue Growth and Strategic Investments

Nissin Foods Holdings Co. reported a 6% increase in revenue for the fiscal year ending March 31, 2025, with core operating profit rising by 3.6%. Despite a slight decrease in profit before tax, the company maintained a stable financial position, implementing a three-for-one stock split to enhance shareholder value. The company plans to continue its strategic investments in new businesses, aiming for growth in the upcoming fiscal year.