Nissin Foods Holdings Co (2897) AI Stock Analysis

• Market Cap: $862.99B
• Dividend Yield: 2.27%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.37
• Revenue Growth: 5.96%
• EPS Growth: 3.50%
• Country: JP
• Employees: 16,509
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 39.08
• Shares Outstanding: 297,584,500
• 10 Day Avg. Volume: 1,017,110
• 30 Day Avg. Volume: 1,146,503
• PEG Ratio: 0.97
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.50
• 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: $3,129.12
• Price Target Upside: 6.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ¥3,377.00 ▲(15.41%Upside)

Nissin Foods' strong financial performance, characterized by robust revenue and profit growth, is the primary driver of its stock score. However, bearish technical indicators and potential risks from increased leverage and negative free cash flow temper the overall score. The valuation suggests a fairly priced stock with moderate dividend income potential.

Nissin Foods Holdings Co Business Overview & Revenue Model

Company Description

Nissin Foods Holdings Co., Ltd. is a leading multinational food company based in Japan, recognized for pioneering the instant noodles market. The company operates in various sectors, including the production and sale of packaged foods, with a strong emphasis on instant noodles, frozen foods, and chilled foods. Nissin Foods is renowned for its flagship brands such as Cup Noodles and Top Ramen, which have a significant presence in both domestic and international markets.

How the Company Makes Money

Nissin Foods Holdings Co. generates revenue primarily through the sale of its diverse range of packaged food products. The company's key revenue streams include instant noodles, which remain its core product line, contributing significantly to its overall earnings. Nissin Foods also earns income from its frozen and chilled food segments, which cater to evolving consumer preferences for convenience and variety. The company's revenue model is bolstered by strong brand recognition and a global distribution network that extends across various regions, including Asia, North America, and Europe. Strategic partnerships and collaborations with local distributors and retailers enhance market penetration and accessibility. Additionally, Nissin invests in research and development to innovate and expand its product offerings, adapting to changing consumer tastes and dietary trends, which further supports its revenue growth.

Nissin Foods Holdings Co Financial Statement Overview

Summary

Nissin Foods shows strong financial performance with robust revenue growth, healthy profit margins, and efficient operations. The balance sheet is solid with good equity backing, though rising leverage and negative free cash flow due to increased capital expenditures pose potential risks.

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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
	EBIT
63.68B	61.38B	55.64B	46.61B	55.53B
	EBITDA
98.58B	95.72B	76.52B	71.73B	69.92B
	Net Income Common Stockholders
55.02B	54.17B	44.76B	35.41B	40.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.04B	96.66B	98.16B	112.28B	97.18B
	Total Assets
848.46B	812.38B	708.37B	683.42B	663.53B
	Total Debt
115.56B	34.85B	36.22B	44.91B	47.93B
	Net Debt
42.52B	-61.81B	-51.17B	-57.09B	-42.36B
	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: 2926.00
• 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 2926 is below the 20-day moving average (MA) of 3028.78, below the 50-day MA of 3085.46, and below the 200-day MA of 3493.45, indicating a bearish trend. The MACD of -44.90 indicates Positive momentum. The RSI at 30.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.71 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2212	77 Outperform	$652.92B	17.86	8.78%	1.18%	4.25%	4.06%
2875	75 Outperform	$939.06B	14.78	13.14%	0.01%	3.80%	15.04%
2897	69 Neutral	$862.99B	15.87	11.20%	2.27%	5.96%	3.50%
2871	68 Neutral	€474.56B	19.24	9.55%	2.19%	3.23%	1.50%
2269	67 Neutral	$882.46B	17.27	6.71%	3.11%	4.39%	2.51%
2282	66 Neutral	€494.52B	19.11	4.96%	2.81%	5.15%	-3.91%
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%

Nissin Foods Holdings Co Corporate Events

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.