Nissin Foods Holdings Co (2897) AI Stock Analysis

• Market Cap: ¥957.96B
• Dividend Yield: 2.41%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.41
• Revenue Growth: 1.46%
• EPS Growth: -2.17%
• Country: JP
• Employees: 16,509
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 57.14
• Shares Outstanding: 297,584,500
• 10 Day Avg. Volume: 2,057,600
• 30 Day Avg. Volume: 1,794,403
• PEG Ratio: 4.72
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 1.17
• P/FCF Ratio: -66.87
• 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: ¥4,800.00
• Price Target Upside: 64.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 162.13
• Revenue Forecast (FY): ¥790.08B

• Rating: 66 Neutral
• Price Target: ¥3,402.00 ▲(16.83% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

The score is primarily constrained by weaker cash-flow quality (TTM free cash flow turning negative) alongside higher leverage, despite steady revenue growth and generally stable margins. Technicals are a meaningful positive with price above key moving averages and supportive momentum, while valuation is fair with a moderate P/E and dividend yield.

Positive Factors

Steady multi-year revenue growth

Consistent multi-year revenue expansion reflects durable consumer demand and successful market penetration across regions. That steady top-line supports scale economics in procurement and production, underpins predictable cash flows, and gives the business latitude to fund product development and distribution investments.

Mid-30% gross margins

Sustained mid-30% gross margins provide a meaningful profitability buffer versus commodity and input cost swings typical in packaged foods. Healthy gross margins enable ongoing brand marketing, innovation, and targeted pricing, preserving operating leverage even if some cost pressures persist.

Established brands and manufacturing scale

A recognized instant-noodle franchise and broad manufacturing/distribution network create structural advantages: strong shelf presence, wide retail access, and efficient production. These attributes support resilient demand, faster product rollouts, and cost efficiencies that endure beyond short-term cycles.

Negative Factors

TTM free cash flow turned negative

A recent swing to negative free cash flow reduces internal funding for capex, dividends, and debt paydown, increasing reliance on external financing. Over the medium term this limits financial flexibility and heightens execution risk if operating cash conversion does not recover.

Rising leverage (debt/equity ~0.38)

A meaningful increase in debt-to-equity raises interest and refinancing sensitivity, reducing balance-sheet resilience. With higher leverage, the company needs stronger and more consistent cash generation to maintain investment and shareholder returns without compromising credit flexibility.

Operating margin compression

A decline in operating margin versus prior levels signals margin pressure from cost inflation or adverse mix. Persistent compression would limit reinvestment capacity and earnings leverage, making it harder to convert revenue growth into sustainable profit gains over the medium term.

Nissin Foods Holdings Co Business Overview & Revenue Model

Company Description

Nissin Foods Holdings Co.,Ltd., together with its subsidiaries, engages in the manufacture and sale of instant foods in Japan and internationally. The company operates through the Nissin Food Products, Myojo Foods, Chilled and Frozen Foods and Beverages, Confectionery, The Americas, China, Asia, EMEA, and Domestic Others segments. Its products include packaged instant noodles, cup noodles, chilled and frozen foods, soups, chilled noodles, cereal foods, dairy products, confectionery, rice crackers and snacks, beverages and yogurt, potato chips, and other products. The company offers its products under Chicken Ramen, Cup Noodle, Cup Noodles Chicken, Demae Iccho, Hé wèi dào, 365 Noodles, Cup brand names. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nissin Foods generates revenue primarily through the sale of its instant noodle products, which account for a significant portion of its overall earnings. The company's revenue model is supported by both domestic and international sales, with a strong presence in Asia, North America, and Europe. Key revenue streams include retail sales through supermarkets, convenience stores, and e-commerce platforms, as well as partnerships with food service providers and restaurants. Additionally, Nissin has invested in product diversification, introducing new flavors and healthier options, which attracts a wider customer base. The company's strategic collaborations with other food brands and distributors further enhance its market reach and profitability.

Nissin Foods Holdings Co Financial Statement Overview

Summary

Core operations are solid with steady multi-year revenue growth and durable profitability (mid-30% gross margin; ~6–7% net margin), but the overall financial profile is held back by a swing to negative free cash flow in TTM and a noticeable rise in leverage (debt-to-equity increasing to ~0.38).

Income Statement

Revenue has expanded steadily over the last several years (annual growth ranging from mid-single digits to high teens), with TTM (Trailing-Twelve-Months) revenue modestly above the last annual period. Profitability is solid and fairly stable for packaged foods: gross margin is in the mid-30% range and TTM operating margin is ~7% (down versus recent annual levels), while net margin is ~6–7%. The key weakness is some margin compression from prior peaks, suggesting cost pressure and/or mix impacts that could limit near-term earnings leverage.

Balance Sheet

The company maintains a sizable equity base and a reasonable overall leverage position, with the latest annual debt-to-equity around 0.24 and returns on equity consistently around ~9–12%. However, leverage has stepped up meaningfully in TTM (Trailing-Twelve-Months) as total debt rose sharply versus the prior year, pushing debt-to-equity to ~0.38. This reduces balance-sheet flexibility and raises the bar for cash generation to comfortably support higher debt levels.

Cash Flow

Cash generation has become the main pressure point. While operating cash flow remains positive in TTM (Trailing-Twelve-Months), free cash flow has swung to negative (after being strongly positive in prior years), and free cash flow is negative relative to net income—suggesting higher capital spending and/or working-capital absorption. The combination of rising debt and negative free cash flow increases sensitivity to execution and makes the current cash profile less supportive of aggressive capital returns or rapid deleveraging.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	780.87B	776.59B	732.93B	669.25B	569.72B	506.11B
Gross Profit	268.27B	272.95B	258.63B	221.08B	194.50B	181.76B
EBITDA	92.39B	98.58B	95.72B	79.86B	74.27B	76.73B
Net Income	50.48B	55.02B	54.17B	44.76B	35.41B	40.83B
Balance Sheet
Total Assets	969.33B	848.46B	812.38B	708.37B	683.42B	663.53B
Cash, Cash Equivalents and Short-Term Investments	93.71B	73.04B	96.66B	98.16B	102.00B	90.29B
Total Debt	188.81B	115.56B	34.85B	36.22B	44.91B	47.93B
Total Liabilities	433.87B	336.56B	277.37B	240.43B	238.83B	242.09B
Stockholders Equity	496.66B	475.53B	493.19B	430.43B	407.66B	384.02B
Cash Flow
Free Cash Flow	-12.45B	-13.62B	31.56B	39.11B	28.45B	39.82B
Operating Cash Flow	73.47B	57.06B	94.12B	64.81B	52.94B	72.71B
Investing Cash Flow	-81.79B	-76.71B	-61.91B	-32.06B	-3.47B	-26.53B
Financing Cash Flow	13.48B	-591.00M	-26.32B	-47.68B	-44.45B	-19.05B

Nissin Foods Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2912.00
• 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:2897, the sentiment is Positive. The current price of 2912 is below the 20-day moving average (MA) of 3240.70, below the 50-day MA of 3076.78, and above the 200-day MA of 2907.75, indicating a bullish trend. The MACD of 54.20 indicates Positive momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2875	76 Outperform	¥1.23T	18.57	13.26%	1.82%	3.64%	5.31%
1332	76 Outperform	¥467.17B	16.35	10.81%	2.56%	3.87%	29.64%
2810	74 Outperform	¥296.35B	23.40	4.19%	1.66%	0.74%	5.88%
2801	72 Outperform	¥1.45T	23.70	11.19%	1.46%	2.65%	-5.76%
2897	66 Neutral	¥957.96B	18.65	9.77%	2.41%	1.46%	-2.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2802	61 Neutral	¥4.57T	59.02	9.46%	1.32%	1.99%	-18.79%

Nissin Foods Holdings Co Corporate Events

Nissin Foods Returns to Revenue Growth as Overseas Business Drives Q3 Profit

Nissin Foods reported that revenue increased across all three business segments in the third quarter of FY3/2026, with consolidated profit boosted mainly by strong overseas performance; on a cumulative basis from April to December, revenue returned to growth and the prior profit decline narrowed, with full-year revenue and core operating profit expected to track in line with revised guidance. In Japan, the Nissin instant noodles line saw continued revenue growth driven by price-conscious products despite profit pressure from higher raw material costs, while Myojo delivered gains in both revenue and profit on robust core brands and solid volume growth; in contrast, the domestic non-instant noodles segment posted higher revenue but lower profit due to cost inflation and increased depreciation, even as overseas operations—particularly in the U.S., Brazil, China, and European affiliates—achieved revenue and profit growth, aided by the fading impact of last year’s U.S. volume decline and expanded sales coverage.

The most recent analyst rating on (JP:2897) stock is a Buy with a Yen3232.00 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 Grows Revenue but Cuts Profit Outlook in FY2026 Q3 Update

In supplemental materials for its fiscal 2026 third quarter, Nissin Foods reported year‑on‑year revenue growth but a decline in operating profit and profit attributable to owners of the parent, reflecting margin pressure despite higher sales. Core operating profit of existing businesses also fell versus the prior year and against the previous fiscal year’s full results, prompting a revised full‑year plan that maintains modest top‑line growth expectations but incorporates weaker profitability and segment‑level adjustments, particularly in domestic instant and non‑instant noodle operations and overseas business. Management highlighted the impact of foreign exchange by providing constant‑currency comparisons, detailed changes by segment, and factors behind core operating profit movements, while reiterating its medium‑ to long‑term growth strategy and signaling ongoing, relatively aggressive investment in new businesses within a set proportion of core earnings.

The most recent analyst rating on (JP:2897) stock is a Buy with a Yen3232.00 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 Posts Higher Sales but Profit Declines, Keeps Dividend Forecast Unchanged

Nissin Foods Holdings reported modest revenue growth but weaker profits for the nine months ended December 31, 2025, with revenue edging up 0.7% year on year to ¥586.6 billion while core operating profit of existing businesses fell 13.4% and profit attributable to owners of the parent declined 10.4%. The company maintained its dividend stance, confirming an interim payout of ¥35 per share and keeping its full-year dividend forecast of ¥70 per share unchanged, even as it projects only 2.0% full-year revenue growth and a roughly 18–22% drop in core operating profit, operating profit and net profit, signaling pressure on margins despite steady sales and an unchanged earnings outlook.

The most recent analyst rating on (JP:2897) stock is a Buy with a Yen3232.00 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 to Record 50.3 Billion Yen in Dividends from Subsidiaries

Nissin Foods Holdings Co., Ltd. announced it will receive dividends totaling 50.3 billion yen from its six consolidated subsidiaries, which will be recorded as revenue in its non-consolidated financial statements for the fiscal year ending March 2026. This transaction will not affect the company’s consolidated financial results as these dividends are considered intercompany transactions and are eliminated in the consolidated accounts.

The most recent analyst rating on (JP:2897) stock is a Hold with a Yen3044.00 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 Revises Financial Forecast for FY 2026

Nissin Foods Holdings Co. has revised its financial forecast for the fiscal year ending March 2026, anticipating lower revenue and profit than previously expected. This adjustment is due to increased raw material costs, a shift towards lower-priced products in response to consumer demand, and sluggish sales in the U.S. market, impacting the company’s financial outlook.

The most recent analyst rating on (JP:2897) stock is a Hold with a Yen3044.00 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 First Half Financial Performance

Nissin Foods Holdings Co. reported a decline in its financial performance for the first half of the fiscal year ending March 2026, with revenue slightly decreasing by 1.3% and core operating profit dropping by 21.9%. Despite these challenges, the company maintained its dividend forecast, indicating a stable outlook for shareholders.

The most recent analyst rating on (JP:2897) stock is a Hold with a Yen3044.00 price target. To see the full list of analyst forecasts on Nissin Foods Holdings Co stock, see the JP:2897 Stock Forecast page.