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

• Market Cap: ¥8.00B
• Dividend Yield: 2.13%
• Average Volume (3M): 3.39K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.23
• Revenue Growth: 0.45%
• EPS Growth: -50.91%
• Country: JP
• Employees: 599
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 8.85
• Shares Outstanding: 11,400,000
• 10 Day Avg. Volume: 3,940
• 30 Day Avg. Volume: 3,393
• PEG Ratio: -0.72
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 15.22
• 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: 58 Neutral
• Price Target: ¥780.00 ▲(7.59% Upside)

Semba Tohka Industries' overall stock score is driven by its stable financial performance and strong balance sheet. However, bearish technical indicators and a high P/E ratio suggest caution. The lack of earnings call data and corporate events limits further insights.

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 prominent player in the Japanese manufacturing sector, specializing in the production of high-quality food ingredients and additives. The company operates primarily within the food processing industry, focusing on the development of innovative products that enhance flavor, texture, and nutritional value. Semba Tohka is known for its commitment to quality and sustainability, utilizing advanced technology and research in its operations to serve both domestic and international markets.

How the Company Makes Money

Semba Tohka Industries generates revenue primarily through the sale of its food ingredients and additives to various sectors, including food manufacturers, restaurants, and food service companies. The company has established key revenue streams through long-term contracts with major food producers, which provide a steady flow of income. Additionally, Semba Tohka benefits from partnerships with research institutions and culinary experts, enabling them to innovate and develop new products that meet evolving consumer demands. The company's focus on quality, sustainability, and technological advancement also contributes to its competitive edge and profitability.

Semba Tohka Industries Co., Ltd Financial Statement Overview

Summary

Semba Tohka Industries maintains a stable financial position with a strong balance sheet and consistent profitability margins. However, challenges in revenue growth and declining free cash flow could impact future financial flexibility.

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	18.83B	18.70B	19.14B	18.62B	18.42B	19.53B
Gross Profit	4.20B	4.16B	4.18B	3.56B	4.02B	4.41B
EBITDA	1.44B	1.45B	1.75B	1.27B	1.83B	1.78B
Net Income	279.82M	319.61M	495.37M	232.90M	540.08M	581.69M
Balance Sheet
Total Assets	20.81B	20.66B	23.01B	21.67B	21.56B	21.82B
Cash, Cash Equivalents and Short-Term Investments	3.07B	3.08B	3.45B	3.18B	3.31B	3.26B
Total Debt	3.96B	3.64B	4.51B	4.64B	4.91B	5.42B
Total Liabilities	8.93B	8.80B	10.29B	10.09B	10.25B	11.06B
Stockholders Equity	11.86B	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: Negative
• Last Price: 725.00
• 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:2916, the sentiment is Negative. The current price of 725 is above the 20-day moving average (MA) of 715.50, above the 50-day MA of 724.70, and below the 200-day MA of 736.74, indicating a bearish trend. The MACD of -4.90 indicates Positive momentum. The RSI at 30.39 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2112	80 Outperform	¥14.16B	5.50	―	1.92%	2.73%	59.02%
2114	71 Outperform	¥29.88B	11.03	―	2.92%	6.64%	10.48%
2108	63 Neutral	¥44.00B	-24.29	―	2.13%	3.82%	-131.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2750	61 Neutral	¥9.63B	8.54	―	2.40%	16.64%	35.09%
2916	58 Neutral	¥8.00B	35.98	―	2.13%	0.45%	-50.91%