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

• Market Cap: ¥42.26B
• Dividend Yield: 3.73%
• Average Volume (3M): 52.16K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.33
• Revenue Growth: 7.47%
• EPS Growth: -37.31%
• Country: JP
• Employees: 1,948
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): -54.96
• Shares Outstanding: 17,625,660
• 10 Day Avg. Volume: 55,620
• 30 Day Avg. Volume: 52,163
• PEG Ratio: -1.29
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.83
• 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: 66 Neutral
• Price Target: ¥2,401.00 ▼(-0.54%Downside)

WARABEYA NICHIYO HOLDINGS Co., Ltd. demonstrates solid revenue growth and a stable financial foundation. However, challenges with declining net margins and negative cash flow due to high capital expenditures are significant factors. The technical analysis indicates a mixed outlook, with short-term weakness but potential long-term strength. The stock's valuation is attractive, supported by a fair P/E ratio and a strong dividend yield, making it appealing to income-focused investors.

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, but faces challenges with declining net margins and rising leverage. The balance sheet is solid with a healthy equity base, although increasing debt levels could pose future risks. Cash flow management is 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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	223.11B	222.47B	207.01B	194.42B	192.33B	194.31B
Gross Profit	38.61B	37.84B	36.95B	33.51B	32.11B	31.32B
EBITDA	12.37B	11.68B	11.01B	9.07B	10.09B	7.00B
Net Income	4.44B	2.68B	4.27B	2.81B	3.26B	682.00M
Balance Sheet
Total Assets	119.53B	120.92B	101.96B	92.68B	82.18B	82.27B
Cash, Cash Equivalents and Short-Term Investments	13.95B	8.45B	8.12B	11.19B	9.67B	8.95B
Total Debt	29.77B	34.24B	21.66B	15.15B	9.31B	11.21B
Total Liabilities	61.89B	61.80B	47.65B	41.16B	34.28B	37.90B
Stockholders Equity	55.34B	56.67B	53.30B	50.50B	47.56B	44.16B
Cash Flow
Free Cash Flow	0.00	-5.28B	-3.70B	332.00M	4.28B	2.88B
Operating Cash Flow	0.00	12.48B	9.37B	7.43B	8.11B	8.34B
Investing Cash Flow	0.00	-20.67B	-13.54B	-7.54B	-3.96B	-5.23B
Financing Cash Flow	0.00	8.26B	845.00M	692.00M	-3.55B	-1.92B

WARABEYA NICHIYO HOLDINGS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2414.00
• 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:2918, the sentiment is Positive. The current price of 2414 is above the 20-day moving average (MA) of 2292.60, above the 50-day MA of 2268.62, and above the 200-day MA of 2122.25, indicating a bullish trend. The MACD of 34.55 indicates Negative momentum. The RSI at 73.49 is Negative, neither overbought nor oversold. The STOCH value of 89.26 is Negative, 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	75 Outperform	¥28.14B	7.80		2.21%	3.36%	29.57%
2923	71 Outperform	¥35.91B	18.42		10.43%	8.40%	-30.66%
Sector *	68 Neutral	¥197.59B	21.30	8.29%	2.34%	5.00%	2.97%
2918	66 Neutral	¥42.26B	15.78		3.73%	7.47%	-37.31%
2831	64 Neutral	¥30.40B	12.36		1.85%	1.56%	40.56%
2910	64 Neutral	¥41.29B	123.34		261.26%	0.78%	-40.15%
2820	61 Neutral	¥34.28B	23.91		1.47%	10.43%	-0.65%

WARABEYA NICHIYO HOLDINGS Co., Ltd. Corporate Events

Warabeya Nichiyo Holdings Announces Leadership Restructuring

Warabeya Nichiyo Holdings Co., Ltd. announced significant changes in its leadership structure, consolidating the representative authority to expedite decision-making and advance business initiatives. The company has appointed Hideo Tsuji as the sole Representative Director and President, while introducing Takuo Sukigara as a new Outside Director, Audit & Supervisory Committee Member, to enhance governance.

Warabeya Nichiyo Holdings Delays U.S. Plant Opening to 2026

Warabeya Nichiyo Holdings Co., Ltd. has revised its plan for a new plant in Columbus, Ohio, delaying the start of operations from September 2025 to Summer 2026 due to construction delays. This change has already been accounted for in the company’s earnings forecast for the fiscal year ending February 2026, minimizing any unexpected impact on stakeholders.

Warabeya Nichiyo Holdings Exceeds Profit Forecasts for FY 2025

Warabeya Nichiyo Holdings Co., Ltd. announced a discrepancy between its financial forecast and actual results for the fiscal year ended February 28, 2025. The company’s actual operating profit, ordinary profit, and profit attributable to owners of the parent exceeded previous forecasts, driven by higher-than-expected sales in the Food Production Businesses and revised product specifications.

WARABEYA NICHIYO Reports Increased Sales but Decline in Profits

WARABEYA NICHIYO HOLDINGS Co., Ltd. reported its consolidated financial results for the year ended February 28, 2025, showing a 7.5% increase in net sales to ¥222,467 million. However, the company experienced a decline in operating profit by 29.2% and ordinary profit by 28.2%, with profit attributable to owners of the parent decreasing by 37.3%. Despite these declines, the company maintained its dividend payout, reflecting a commitment to returning value to shareholders. The financial forecast for the year ending February 28, 2026, anticipates a modest growth in net sales and a significant recovery in operating and ordinary profits.