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Nissin Foods Holdings Co Ltd (JP:2897)
:2897
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Nissin Foods Holdings Co (2897) AI Stock Analysis

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JP:2897

Nissin Foods Holdings Co

(OTC:2897)

Rating:66Neutral
Price Target:
¥2,894.00
▲(3.76% Upside)
Nissin Foods' overall score reflects strong financial performance and reasonable valuation, offset by bearish technical indicators. The company's robust financial health and attractive dividend yield are positives, while technical analysis suggests caution due to oversold conditions.

Nissin Foods Holdings Co (2897) vs. iShares MSCI Japan ETF (EWJ)

Nissin Foods Holdings Co Business Overview & Revenue Model

Company DescriptionNissin 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 MoneyNissin 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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue776.59B732.93B669.25B569.72B506.11B
Gross Profit272.95B258.63B221.08B194.50B181.76B
EBITDA98.58B95.72B76.52B71.73B69.92B
Net Income55.02B54.17B44.76B35.41B40.83B
Balance Sheet
Total Assets848.46B812.38B708.37B683.42B663.53B
Cash, Cash Equivalents and Short-Term Investments73.04B96.66B98.16B112.28B97.18B
Total Debt115.56B34.85B36.22B44.91B47.93B
Total Liabilities336.56B277.37B240.43B238.83B242.09B
Stockholders Equity475.53B493.19B430.43B407.66B384.02B
Cash Flow
Free Cash Flow-13.62B31.56B39.11B28.45B39.82B
Operating Cash Flow57.06B94.12B64.81B52.94B72.71B
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 Price2789.00
Price Trends
50DMA
2892.90
Negative
100DMA
2991.00
Negative
200DMA
3253.35
Negative
Market Momentum
MACD
-30.02
Negative
RSI
42.64
Neutral
STOCH
34.71
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 2789 is below the 20-day moving average (MA) of 2814.25, below the 50-day MA of 2892.90, and below the 200-day MA of 3253.35, indicating a bearish trend. The MACD of -30.02 indicates Negative momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 34.71 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.01T16.2912.82%1.94%0.43%-0.47%
77
Outperform
$705.59B18.459.20%1.07%3.91%2.46%
69
Neutral
€553.55B22.614.92%2.38%5.10%-13.09%
69
Neutral
¥222.72B21.818.23%2.13%4.96%1.22%
68
Neutral
$847.58B17.836.40%3.24%2.45%-9.06%
66
Neutral
$825.24B16.4410.68%2.51%2.27%-7.76%
58
Neutral
€439.43B18.349.74%3.53%2.10%-7.06%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2897
Nissin Foods Holdings Co
2,789.00
-917.24
-24.75%
JP:2282
NH Foods
5,669.00
339.59
6.37%
JP:2871
Nichirei Corporation
1,741.00
-410.89
-19.09%
JP:2875
Toyo Suisan Kaisha
10,290.00
846.48
8.96%
JP:2269
Meiji Holdings Co
3,088.00
-446.78
-12.64%
JP:2212
Yamazaki Baking Co
3,432.00
653.51
23.52%

Nissin Foods Holdings Co Corporate Events

Nissin Foods Completes Share Buyback as Part of Strategic Acquisition Plan
Aug 5, 2025

Nissin Foods Holdings Co., Ltd. has completed the acquisition of its own shares, purchasing 306,300 shares for approximately 880.6 million yen on the Tokyo Stock Exchange. This move is part of a larger plan to acquire up to 9.5 million shares, representing 3.22% of the total shares outstanding, with a maximum budget of 20 billion yen, indicating a strategic effort to consolidate ownership and potentially enhance 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 Faces Profit Decline Amid Rising Costs and Yen Appreciation
Aug 4, 2025

Nissin Foods Holdings reported a 4.3% decline in revenue and a 25.5% drop in core operating profit for Q1 FY 3/2026, attributed to rising material costs and yen appreciation. Despite increased revenue in the domestic instant noodles segment, profits were impacted by higher costs. The overseas business faced challenges, particularly in the U.S., affecting overall performance. The company remains aligned with its domestic business plan but faces uncertainty abroad due to material cost fluctuations and exchange rate impacts.

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 Reports Decline in Quarterly Profits Amid Strategic Investments
Aug 4, 2025

Nissin Foods Holdings Co. reported a decline in its financial performance for the three months ending June 30, 2025, with a decrease in revenue and profits compared to the previous year. Despite this, the company maintains its dividend forecast and plans to invest in new businesses, indicating a strategic focus on long-term growth and market expansion.

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 Enhances Board Benefit Trust with Additional Contribution
Aug 1, 2025

Nissin Foods Holdings Co. has announced an additional monetary contribution to its Board Benefit Trust, aimed at acquiring shares necessary for its performance-linked stock remuneration plan. This move is expected to enhance the company’s stock compensation strategy, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (JP:2897) stock is a Hold with a Yen4200.00 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 Acquires Over 3 Million Shares in Strategic Move
Aug 1, 2025

Nissin Foods Holdings Co., Ltd. announced the acquisition of 3,471,400 of its own shares, valued at 10,134,023,750 yen, on the Tokyo Stock Exchange during July 2025. This move is part of a broader strategy to acquire up to 9,500,000 shares by the end of November 2025, potentially impacting the company’s share value and market positioning.

The most recent analyst rating on (JP:2897) stock is a Hold with a Yen4200.00 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 Strategic Share Buyback
Jul 1, 2025

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
Jun 2, 2025

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
May 8, 2025

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
May 8, 2025

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.

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: Aug 05, 2025