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Nissin Foods Holdings Co Ltd (JP:2897)
:2897

Nissin Foods Holdings Co (2897) AI Stock Analysis

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JP

Nissin Foods Holdings Co

(OTC:2897)

Rating:74Outperform
Price Target:
¥3,479.00
▲(15.74%Upside)
Nissin Foods scores well due to strong financial performance, characterized by consistent revenue growth and solid profitability. Technical analysis highlights short-term price strength, though caution is advised due to potential overbought conditions. Valuation is fair with a reasonable P/E ratio and an attractive dividend yield.

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., 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 MoneyNissin 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
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
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 Price3006.00
Price Trends
50DMA
3055.14
Negative
100DMA
3053.62
Negative
200DMA
3435.90
Negative
Market Momentum
MACD
-5.16
Negative
RSI
50.97
Neutral
STOCH
70.39
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 3006 is above the 20-day moving average (MA) of 2967.55, below the 50-day MA of 3055.14, and below the 200-day MA of 3435.90, indicating a neutral trend. The MACD of -5.16 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 70.39 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$902.22B16.5911.20%2.29%5.96%3.42%
63
Neutral
€16.07B12.72-4.55%4.03%-1.83%-144.94%
$6.05B18.166.71%0.02%
DENI6
€2.84B17.794.96%2.75%
$6.74B16.1613.14%0.01%
$4.49B17.258.78%1.18%
DENI3
€2.73B17.999.55%2.23%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2897
Nissin Foods Holdings Co
3,006.00
-1,096.35
-26.72%
MEJHF
Meiji Holdings Co
22.16
0.84
3.94%
DE:NI6
NH Foods
28.60
2.51
9.62%
TSUKF
Toyo Suisan Kaisha
66.39
6.65
11.13%
YZZKF
Yamazaki Baking Co
20.36
0.86
4.41%
DE:NI3
Nichirei Corporation
10.70
1.23
12.99%

Nissin Foods Holdings Co Corporate Events

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: Jul 03, 2025