Shinobu Foods Products Co., Ltd. (2903) AI Stock Analysis

• Market Cap: ¥23.31B
• Dividend Yield: 1.74%
• Average Volume (3M): 19.15K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.23
• Revenue Growth: 7.66%
• EPS Growth: 2.64%
• Country: JP
• Employees: 543
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 48.33
• Shares Outstanding: 12,500,000
• 10 Day Avg. Volume: 22,560
• 30 Day Avg. Volume: 19,150
• PEG Ratio: -0.82
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 6.87
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,226.00 ▲(33.37% Upside)

Shinobu Foods Products Co., Ltd. has a solid financial foundation with consistent revenue growth and a stable balance sheet. However, profitability and cash flow challenges need addressing. The stock's technical indicators show strong momentum but suggest it may be overbought. Valuation metrics indicate the stock is fairly valued with a moderate dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Stable balance sheet / low leverage

A low debt-to-equity ratio and strong equity ratio provide durable financial flexibility, reducing refinancing and interest rate risk. This balance-sheet strength supports steady operations, capacity for strategic capex or M&A, and resilience through demand cycles over the next 2–6 months.

Consistent revenue growth

Sustained top-line growth signals underlying demand for the company’s packaged-foods products and steady market traction. Durable revenue expansion helps absorb fixed costs, underpin scale benefits, and supports medium-term planning for capacity, marketing, and product development investments.

Strong operating cash generation vs. earnings

Operating cash flow well above reported net income indicates high-quality earnings and solid cash conversion. This durable cash generation supports working capital, routine capex, and distributions without heavy external financing, enhancing financial stability over months ahead.

Negative Factors

Declining free cash flow

An 18% drop in free cash flow signals pressure on discretionary financial flexibility and may reflect higher capex or working-capital demands. If the trend persists, it could constrain investments, dividend sustainability, or debt reduction, challenging medium-term strategic initiatives.

Low net profit margin

A sub-2% net margin indicates limited ability to translate revenues into retained profits, leaving the company exposed to input cost swings and pricing pressure. Persistently thin net margins hinder reinvestment capacity and reduce the buffer against cyclical headwinds over the coming months.

Modest return on equity

A ROE around 6.6% suggests the company is generating modest returns on shareholders’ capital relative to potential alternatives. Without operational improvements or better capital allocation, this limits long-term value creation and may pressure strategic choices over the medium term.

Shinobu Foods Products Co., Ltd. Business Overview & Revenue Model

Company Description

Shinobu Foods Products Co., Ltd. manufactures and sells processed rice foods in Japan. The company processed food products include lunch boxes, rice balls, sushi, etc.; and cooked bread products, such as sandwiches, etc., as well as provides side dishes, etc. Shinobu Foods Products Co., Ltd. was incorporated in 1971 and is headquartered in Osaka, Japan

How the Company Makes Money

Shinobu Foods Products Co., Ltd. generates revenue primarily through the sale of its food products to retailers, distributors, and food service companies. The company has established strong relationships with major supermarket chains and grocery stores, which serve as key distribution channels for its products. Additionally, Shinobu Foods capitalizes on its brand recognition to drive sales through direct-to-consumer channels, including online platforms. Key revenue streams include sales from packaged foods, snack items, and beverages, with a focus on both domestic markets and international exports. Strategic partnerships with suppliers and co-manufacturers also contribute to cost efficiencies, enabling the company to maintain competitive pricing while enhancing profit margins.

Shinobu Foods Products Co., Ltd. Financial Statement Overview

Summary

Shinobu Foods Products Co., Ltd. demonstrates solid revenue growth and a stable balance sheet, with moderate profitability and cash flow challenges. The company's operational efficiency remains strong, though profitability margins and free cash flow generation require attention. The balance sheet is bolstered by a strong equity base, yet the company could enhance shareholder value through improved return on equity.

Income Statement

Shinobu Foods Products Co., Ltd. has shown consistent revenue growth over the years, with the latest annual growth rate at 5.15% from 2024 to 2025. The gross profit margin stands at 14.82% for 2025, slightly improving from the previous year. The net profit margin decreased to 1.73% in 2025, indicating challenges in maintaining profitability despite revenue growth. However, the EBIT margin remained stable at around 4%, and the EBITDA margin was 5.15% in 2025, reflecting operational efficiency.

Balance Sheet

The company has a relatively stable balance sheet with a debt-to-equity ratio of 0.38 in 2025, showing an improvement from the previous year. The equity ratio is strong at 50.96%, indicating a solid equity base. However, the return on equity is modest at 6.59% for 2025, suggesting opportunities for better utilization of shareholders' equity.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow from 2024 to 2025 by 18.41%, indicating potential investment or operational challenges. The operating cash flow to net income ratio is robust at 3.22, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased, signaling pressure on free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.05B	57.65B	54.83B	51.05B	48.65B	45.48B
Gross Profit	8.75B	8.54B	8.01B	7.06B	6.58B	5.88B
EBITDA	3.02B	2.97B	3.20B	2.05B	3.09B	2.66B
Net Income	1.02B	997.00M	1.17B	103.00M	1.08B	791.00M
Balance Sheet
Total Assets	29.65B	29.68B	30.43B	30.38B	30.94B	30.35B
Cash, Cash Equivalents and Short-Term Investments	6.25B	6.28B	6.98B	6.63B	5.48B	4.68B
Total Debt	5.98B	5.82B	7.26B	8.54B	9.15B	9.63B
Total Liabilities	14.44B	14.54B	15.48B	16.35B	16.75B	16.93B
Stockholders Equity	15.20B	15.13B	14.95B	14.03B	14.18B	13.42B
Cash Flow
Free Cash Flow	0.00	1.60B	1.96B	1.96B	1.66B	1.88B
Operating Cash Flow	0.00	3.21B	3.67B	2.97B	2.59B	3.17B
Investing Cash Flow	0.00	-1.67B	-1.70B	-940.00M	-998.00M	-1.20B
Financing Cash Flow	0.00	-2.25B	-1.62B	-879.00M	-792.00M	-320.00M

Shinobu Foods Products Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1669.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2903, the sentiment is Positive. The current price of 1669 is below the 20-day moving average (MA) of 1889.00, below the 50-day MA of 1764.62, and above the 200-day MA of 1481.09, indicating a bullish trend. The MACD of 80.55 indicates Negative momentum. The RSI at 83.85 is Negative, neither overbought nor oversold. The STOCH value of 80.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2903.

Shinobu Foods Products Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2884	78 Outperform	¥20.95B	12.49	―	―	3.07%	50.05%
2903	68 Neutral	¥23.31B	21.69	―	1.74%	7.66%	2.64%
2892	64 Neutral	¥18.74B	16.00	―	2.98%	-0.73%	23.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2904	59 Neutral	¥13.77B	22.30	―	1.61%	0.48%	-34.95%
2818	56 Neutral	¥12.35B	-359.49	―	1.38%	10.61%	-140.13%
2901	49 Neutral	¥11.26B	74.00	―	0.84%	4.28%	―