WARABEYA NICHIYO HOLDINGS Co., Ltd. (2918) AI Stock Analysis

• Market Cap: ¥45.90B
• Dividend Yield: 3.38%
• Average Volume (3M): 129.61K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.38
• Revenue Growth: 6.28%
• EPS Growth: -36.71%
• Country: JP
• Employees: 1,948
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 87.06
• Shares Outstanding: 17,625,660
• 10 Day Avg. Volume: 202,950
• 30 Day Avg. Volume: 129,613
• PEG Ratio: -0.46
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 74 Outperform
• Price Target: ¥3,124.00 ▲(18.87%Upside)

The stock of Warabeya Nichiyo Holdings Co., Ltd. scores well due to strong technical indicators showing bullish momentum and a reasonable valuation with a good dividend yield. However, financial performance is a concern due to declining net margins and rising leverage which slightly dampens the overall score.

WARABEYA NICHIYO HOLDINGS Co., Ltd. Business Overview & Revenue Model

Company Description

WARABEYA NICHIYO HOLDINGS Co., Ltd. is a Japanese company primarily engaged in the production and distribution of processed foods. The company operates in various sectors including the manufacturing of ready-to-eat meals, bento boxes, and other food products. It focuses on delivering fresh and quality food items to convenience stores, supermarkets, and other retail outlets across Japan.

How the Company Makes Money

WARABEYA NICHIYO HOLDINGS Co., Ltd. generates revenue through the production and sale of processed food products. The company's primary revenue streams include supplying ready-to-eat meals and bento boxes to major convenience store chains and supermarkets in Japan. By leveraging its extensive distribution network, WARABEYA NICHIYO ensures timely delivery of fresh food products, which is crucial for maintaining strong relationships with retail partners. The company's partnerships with key retailers allow it to maintain a steady stream of orders, which significantly contributes to its earnings. Additionally, the company may engage in strategic collaborations or joint ventures to expand its market reach and enhance product offerings.

WARABEYA NICHIYO HOLDINGS Co., Ltd. Financial Statement Overview

Summary

Warabeya Nichiyo Holdings Co., Ltd. shows robust revenue growth and stable gross margins. However, it faces challenges with declining net margins and rising leverage. The balance sheet is solid but increasing debt levels could pose future risks. Cash flow management appears strained due to significant capital expenditures, resulting in negative free cash flow.

Income Statement

The company shows a steady revenue growth with a 7.5% increase in 2025 compared to 2024. Gross profit margin remains relatively stable, indicating effective cost management. However, net profit margin has declined, suggesting increased expenses or other profitability challenges. EBIT and EBITDA margins are solid but have decreased compared to previous years, potentially indicating rising operational costs.

Balance Sheet

The company's debt-to-equity ratio increased in 2025, indicating higher leverage, which could pose a risk if market conditions worsen. Return on Equity (ROE) is moderate, showing that the company is generating fair returns on its equity. The equity ratio is healthy, suggesting a strong financial foundation, though the increase in debt levels warrants attention.

Cash Flow

The company experienced negative free cash flow in 2025, primarily due to high capital expenditures outpacing operating cash flow. The operating cash flow to net income ratio remains strong, indicating good cash generation from operations. However, the free cash flow to net income ratio is negative, highlighting the challenge of maintaining cash reserves amidst high investment activities.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	222.47B	207.01B	194.42B	192.33B	194.31B
Gross Profit	37.84B	36.95B	33.51B	32.11B	31.32B
EBITDA	11.68B	11.01B	9.07B	10.09B	7.00B
Net Income	2.68B	4.27B	2.81B	3.26B	682.00M
Balance Sheet
Total Assets	120.92B	101.96B	92.68B	82.18B	82.27B
Cash, Cash Equivalents and Short-Term Investments	8.45B	8.12B	11.19B	9.67B	8.95B
Total Debt	34.24B	21.66B	15.15B	9.31B	11.21B
Total Liabilities	61.80B	47.65B	41.16B	34.28B	37.90B
Stockholders Equity	56.67B	53.30B	50.50B	47.56B	44.16B
Cash Flow
Free Cash Flow	-5.28B	-3.70B	332.00M	4.28B	2.88B
Operating Cash Flow	12.48B	9.37B	7.43B	8.11B	8.34B
Investing Cash Flow	-20.67B	-13.54B	-7.54B	-3.96B	-5.23B
Financing Cash Flow	8.26B	845.00M	692.00M	-3.55B	-1.92B

WARABEYA NICHIYO HOLDINGS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2628.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2918, the sentiment is Positive. The current price of 2628 is above the 20-day moving average (MA) of 2520.85, above the 50-day MA of 2366.00, and above the 200-day MA of 2144.74, indicating a bullish trend. The MACD of 86.36 indicates Negative momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 30.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2918.

WARABEYA NICHIYO HOLDINGS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2915	80 Outperform	¥30.44B	8.44		2.01%	3.36%	29.57%
2918	74 Outperform	¥45.90B	16.97		3.38%	6.28%	-36.71%
2820	73 Outperform	¥31.74B	22.20		1.58%	10.43%	-0.65%
2923	71 Outperform	¥36.11B	18.52		10.14%	8.40%	-30.66%
2831	68 Neutral	¥31.53B	12.82		1.67%	1.56%	40.56%
Sector *	65 Neutral	$27.19B	15.58	-4.44%	2.56%	1.05%	4.97%
2910	64 Neutral	¥40.71B	121.59		1.50%	0.78%	-40.15%

WARABEYA NICHIYO HOLDINGS Co., Ltd. Corporate Events

Warabeya Nichiyo Extends Share-based Remuneration Plan to 2030

Warabeya Nichiyo Holdings Co., Ltd. announced the continuation of its Share-based Remuneration Plan for eligible directors, extending the trust period until 2030 and making an additional monetary contribution to secure funds for acquiring company shares. This plan, which aligns with performance share and restricted stock remuneration practices in Europe and the U.S., aims to incentivize directors by granting points based on profit achievements, impacting the company’s executive compensation strategy and aligning director interests with shareholder value.

Warabeya Nichiyo Achieves Record Sales Amid Rising Costs

Warabeya Nichiyo Holdings Co., Ltd. reported record-high consolidated sales for the second consecutive year in the first quarter of FY2026. The company successfully offset increased manufacturing costs, driven by higher personnel and utility expenses, through improved profits from changing product standards and increased sales. While the Iruma Plant turned profitable, overseas operating profit declined due to reduced sales at the Virginia Plant, attributed to the absence of previous sales promotions.

WARABEYA NICHIYO Reports Mixed Financial Results for Q1 2025

WARABEYA NICHIYO HOLDINGS Co., Ltd. reported its consolidated financial results for the three months ending May 31, 2025, showing a 5.1% increase in net sales compared to the previous year. Despite the rise in sales, the company’s ordinary profit decreased by 14.3%, indicating potential challenges in cost management or market conditions. The equity ratio also saw a slight decline, reflecting changes in the company’s financial structure. The company maintained its dividend forecast, suggesting stability in shareholder returns amidst fluctuating profits.