Semba Tohka Industries Co., Ltd (2916) AI Stock Analysis

• Market Cap: ¥8.71B
• Dividend Yield: 1.96%
• Average Volume (3M): 2.39K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.22
• Revenue Growth: -1.16%
• EPS Growth: -37.92%
• Country: JP
• Employees: 599
• Sector: Consumer Defensive
• Sector Strength: 41
• Industry: Food Confectioners
• EPS (TTM): 5.60
• Shares Outstanding: 11,400,000
• 10 Day Avg. Volume: 2,720
• 30 Day Avg. Volume: 2,393
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥822.00
• Price Target Upside: 7.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥822.00 ▲(7.45% Upside)

Semba Tohka Industries has a stable financial foundation with strong equity and consistent profitability margins. However, challenges in revenue growth and declining free cash flow are significant concerns. Technical indicators show moderate positive momentum, supporting the stock's current position. The high P/E ratio suggests an overvaluation risk, offsetting some of the financial and technical strengths.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Cash Generation Ability

Strong cash generation relative to net income indicates efficient operations, providing the company with the necessary liquidity to fund operations and invest in future growth.

Consistent Profitability Margins

Consistent gross profit margins reflect effective cost management and pricing strategies, supporting long-term profitability and competitive positioning in the market.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow can limit the company's ability to invest in growth initiatives and return capital to shareholders, potentially impacting long-term financial health.

Revenue Growth Challenges

Negative revenue growth indicates difficulties in expanding market share or product demand, which could hinder the company's ability to scale and compete effectively in the industry.

Decreased Net Profit Margin

A declining net profit margin suggests reduced efficiency in converting sales into actual profit, which could affect the company's overall financial performance and shareholder returns.

Semba Tohka Industries Co., Ltd Business Overview & Revenue Model

Company Description

Semba Tohka Industries Co., Ltd (2916) is a Japanese company primarily engaged in the food manufacturing sector. The company specializes in the production and distribution of a wide range of food products, including seasonings, condiments, and sauces. With a strong focus on quality and innovation, Semba Tohka Industries strives to meet the diverse culinary needs of its consumers both domestically and internationally.

How the Company Makes Money

Semba Tohka Industries generates revenue through the manufacturing and sale of its diverse portfolio of food products. The company capitalizes on its expertise in creating flavorful seasonings, condiments, and sauces, catering to both household consumers and commercial clients such as restaurants and food service providers. Key revenue streams include direct sales to retailers and wholesalers, as well as exports to international markets, which help the company expand its brand footprint beyond Japan. Partnerships with distributors and collaborations with other food companies also contribute to its financial success, enabling the company to reach a wider customer base and enhance its product offerings.

Semba Tohka Industries Co., Ltd Financial Statement Overview

Summary

Semba Tohka Industries exhibits a stable financial position with a strong balance sheet and consistent profitability margins. However, the company faces challenges in revenue growth and declining free cash flow, which could impact future financial flexibility. Maintaining robust cash generation and improving net profit margins will be crucial for sustaining growth.

Income Statement

Semba Tohka Industries shows a stable gross profit margin of 22.2% in 2025, consistent with previous years. However, the net profit margin decreased to 1.7% in 2025 from 2.6% in 2024, indicating reduced profitability. Revenue growth was negative at -2.3% from 2024 to 2025, suggesting challenges in sales growth. EBIT and EBITDA margins were modest at 4.0% and 7.8%, respectively, in 2025. Overall, the company maintains decent profitability but faces pressure on revenue and net income growth.

Balance Sheet

The company maintains a healthy balance sheet with an equity ratio of 57.3% in 2025, reflecting strong equity financing. The debt-to-equity ratio improved to 0.31, indicating lower leverage. Return on equity, however, decreased to 2.7% in 2025, showing reduced efficiency in generating returns from shareholders' equity. Overall, the balance sheet is strong with good capital structure and low financial risk.

Cash Flow

Operating cash flow to net income ratio stood at 3.2 in 2025, indicating strong cash generation relative to net income. Free cash flow decreased by 34.8% from 2024 to 2025, highlighting challenges in maintaining cash flow levels. The free cash flow to net income ratio was 1.7 in 2025, suggesting positive but declining free cash flow generation. While cash flows remain positive, declining free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.70B	18.70B	19.14B	18.62B	18.42B	19.53B
Gross Profit	4.16B	4.16B	4.18B	3.56B	4.02B	4.41B
EBITDA	1.45B	1.45B	1.75B	1.27B	1.83B	1.78B
Net Income	319.09M	319.61M	495.37M	232.90M	540.08M	581.69M
Balance Sheet
Total Assets	20.66B	20.66B	23.01B	21.67B	21.56B	21.82B
Cash, Cash Equivalents and Short-Term Investments	3.08B	3.08B	3.45B	3.18B	3.31B	3.26B
Total Debt	3.64B	3.64B	4.51B	4.64B	4.91B	5.42B
Total Liabilities	8.80B	8.80B	10.29B	10.09B	10.25B	11.06B
Stockholders Equity	11.84B	11.84B	11.90B	10.82B	10.44B	9.97B
Cash Flow
Free Cash Flow	0.00	538.51M	825.20M	387.89M	648.74M	-319.17M
Operating Cash Flow	0.00	1.01B	1.37B	822.56M	1.75B	1.47B
Investing Cash Flow	0.00	-1.41B	-742.14M	-432.40M	-996.83M	-1.84B
Financing Cash Flow	0.00	-63.52M	-385.96M	-562.37M	-797.09M	-138.63M

Semba Tohka Industries Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 765.00
• 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:2916, the sentiment is Positive. The current price of 765 is below the 20-day moving average (MA) of 766.80, above the 50-day MA of 762.34, and above the 200-day MA of 736.54, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2916.

Semba Tohka Industries Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2114	78 Outperform	¥29.65B	11.12		2.95%	7.36%	31.17%
2112	76 Outperform	¥11.00B	5.20		2.48%	2.91%	62.43%
2750	74 Outperform	¥10.57B	10.58		2.15%	11.14%	-6.30%
2108	71 Outperform	¥39.49B	11.37		2.84%	-1.05%	-140.53%
2916	69 Neutral	¥8.71B	30.96		1.96%	-1.16%	-37.92%
Sector *	62 Neutral	$20.56B	14.79	-3.30%	3.19%	1.94%	-8.41%