AHJIKAN CO., LTD. (2907) AI Stock Analysis

• Market Cap: ¥11.15B
• Dividend Yield: 2.39%
• Average Volume (3M): 3.78K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.32
• Revenue Growth: -0.37%
• EPS Growth: -54.58%
• Country: JP
• Employees: 880
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 57.24
• Shares Outstanding: 7,700,000
• 10 Day Avg. Volume: 2,960
• 30 Day Avg. Volume: 3,780
• PEG Ratio: 2.28
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 3.74
• 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: 72 Outperform
• Price Target: ¥1,627.00 ▲(21.60% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

AHJIKAN CO., LTD. demonstrates strong financial performance with solid revenue growth and profitability, which is the most significant factor in its score. The valuation is reasonable, offering a good dividend yield. However, technical indicators suggest weak momentum, which slightly offsets the overall positive outlook.

Positive Factors

Strong free cash flow generation

A large jump in free cash flow to ¥2.62bn indicates durable cash conversion from operations. That improves financial flexibility to fund capex, pay dividends, reduce leverage or invest in growth initiatives, strengthening resilience across business cycles.

Conservative balance sheet and low leverage

Low debt-to-equity and a high equity ratio provide capacity to absorb shocks and finance opportunities without stressing liquidity. Improved ROE shows management is generating better returns on equity, supporting sustainable capital allocation over the medium term.

Improving margins with stable revenue

Margin expansion alongside modest top-line growth signals better cost control and product mix. Higher gross and operating margins create a structural buffer against input volatility and support healthier long-term profitability and reinvestment capability.

Negative Factors

Sharp EPS contraction

A ~74% drop in EPS is a material deterioration in per-share earnings power. Persistently weak EPS can limit retained earnings for reinvestment, constrain dividend coverage and raise questions about earnings quality or one-off impacts that should be investigated.

Decline in total assets suggests asset management risk

A shrinking asset base may reflect disposals, underinvestment or working-capital shifts that could constrain capacity and growth. Over time, reduced assets can limit scale advantages and revenue expansion unless matched with efficiency gains.

Relatively thin net margins in a competitive sector

A low net margin (~3%) leaves limited room to absorb raw-material or logistics cost shocks common in packaged foods. In a competitive market this reduces pricing power and increases the risk that margin volatility will materially impact earnings sustainability.

AHJIKAN CO., LTD. Business Overview & Revenue Model

Company Description

Ahjikan Co., Ltd. manufactures, sells, and wholesales various food products in Japan. It provides processed chicken eggs, sushi, and surimi and tofu products; Japanese style side dishes; vegetable and fish paste products; imitation crab meat products; Burdock tea-related products; and other foodstuffs. The company also engages in the production and sale of agricultural products, as well as exports its products. The company was founded in 1962 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

AHJIKAN CO., LTD. generates revenue primarily through the sale of its food products, including sauces, condiments, and packaged meals. The company employs a multi-channel distribution strategy, selling its products through retail outlets, online platforms, and food service providers. Key revenue streams include wholesale sales to supermarkets and restaurants, as well as direct-to-consumer sales via e-commerce. The company may also benefit from strategic partnerships with food distributors and retailers, enhancing its market reach. Additionally, AHJIKAN's focus on innovation and product development allows it to introduce new offerings that meet changing consumer preferences, further contributing to its earnings.

AHJIKAN CO., LTD. Financial Statement Overview

Summary

AHJIKAN CO., LTD.'s financial performance is strong, with robust revenue growth, profitability, and cash flow generation. The balance sheet is solid with low leverage, though asset management strategies should be monitored.

Income Statement

AHJIKAN CO., LTD. demonstrated strong revenue growth with a consistent increase over the past years, reaching ¥51.05 billion in 2025 from ¥50.24 billion in 2024. The gross profit margin improved to 26.6%, indicating efficient cost management. The net profit margin also improved to 3.03%, complemented by healthy EBIT and EBITDA margins of 3.85% and 6.74%, respectively. These metrics reflect robust profitability and operational efficiency, despite being in a competitive industry.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.20, showing prudent leverage management. The equity ratio stands at 64.7%, signifying strong equity backing. Return on equity improved to 8.91%, indicating effective use of shareholders' equity to generate profits. However, the decrease in total assets from ¥27.64 billion in 2024 to ¥26.90 billion in 2025 suggests a need to monitor asset management strategies.

Cash Flow

AHJIKAN CO., LTD. showed impressive cash flow management with a substantial increase in free cash flow to ¥2.62 billion in 2025, up from ¥153 million in 2024. The operating cash flow to net income ratio is strong at 2.30, indicating efficient cash generation from operations. The free cash flow to net income ratio of 1.69 further underscores the company's ability to convert income into cash, supporting its financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	50.97B	51.05B	50.24B	47.43B	45.32B	42.59B
Gross Profit	13.06B	13.55B	12.57B	10.60B	11.16B	11.46B
EBITDA	2.86B	3.44B	3.41B	1.58B	2.06B	2.10B
Net Income	1.02B	1.55B	1.51B	267.97M	635.03M	600.32M
Balance Sheet
Total Assets	26.63B	26.90B	27.64B	25.10B	24.44B	23.75B
Cash, Cash Equivalents and Short-Term Investments	2.30B	2.28B	2.18B	2.11B	1.83B	1.84B
Total Debt	3.85B	3.38B	5.57B	5.63B	5.56B	5.29B
Total Liabilities	9.61B	9.51B	11.80B	10.95B	10.57B	10.52B
Stockholders Equity	17.01B	17.39B	15.84B	14.16B	13.87B	13.23B
Cash Flow
Free Cash Flow	0.00	2.50B	153.46M	260.00M	-254.55M	1.52B
Operating Cash Flow	0.00	3.46B	1.38B	959.52M	442.38M	2.00B
Investing Cash Flow	0.00	-763.49M	-1.10B	-533.84M	-438.25M	-238.96M
Financing Cash Flow	0.00	-2.58B	-247.56M	-179.58M	-78.33M	-1.77B

AHJIKAN CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1338.00
• 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:2907, the sentiment is Positive. The current price of 1338 is below the 20-day moving average (MA) of 1386.55, below the 50-day MA of 1351.20, and above the 200-day MA of 1274.95, indicating a bullish trend. The MACD of 23.25 indicates Negative momentum. The RSI at 80.14 is Negative, neither overbought nor oversold. The STOCH value of 90.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2907.

AHJIKAN CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2907	72 Outperform	¥11.15B	20.91	―	2.39%	-0.37%	-54.58%
2903	68 Neutral	¥22.12B	21.22	―	1.74%	7.66%	2.64%
2911	68 Neutral	¥4.28B	15.73	―	1.55%	-1.00%	31.15%
2894	66 Neutral	¥6.19B	14.86	―	1.22%	1.52%	28.70%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2904	59 Neutral	¥13.86B	34.48	―	1.61%	0.48%	-34.95%
2901	49 Neutral	¥11.72B	76.99	―	0.84%	4.28%	―