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WARABEYA NICHIYO HOLDINGS Co., Ltd. (JP:2918)
:2918
Japanese Market
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WARABEYA NICHIYO HOLDINGS Co., Ltd. (2918) AI Stock Analysis

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JP:2918

WARABEYA NICHIYO HOLDINGS Co., Ltd.

(2918)

Rating:74Outperform
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. (2918) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionWARABEYA 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 MoneyWARABEYA 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
72
Positive
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
68
Positive
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
55
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue222.47B207.01B194.42B192.33B194.31B
Gross Profit37.84B36.95B33.51B32.11B31.32B
EBITDA11.68B11.01B9.07B10.09B7.00B
Net Income2.68B4.27B2.81B3.26B682.00M
Balance Sheet
Total Assets120.92B101.96B92.68B82.18B82.27B
Cash, Cash Equivalents and Short-Term Investments8.45B8.12B11.19B9.67B8.95B
Total Debt34.24B21.66B15.15B9.31B11.21B
Total Liabilities61.80B47.65B41.16B34.28B37.90B
Stockholders Equity56.67B53.30B50.50B47.56B44.16B
Cash Flow
Free Cash Flow-5.28B-3.70B332.00M4.28B2.88B
Operating Cash Flow12.48B9.37B7.43B8.11B8.34B
Investing Cash Flow-20.67B-13.54B-7.54B-3.96B-5.23B
Financing Cash Flow8.26B845.00M692.00M-3.55B-1.92B

WARABEYA NICHIYO HOLDINGS Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2628.00
Price Trends
50DMA
2366.00
Positive
100DMA
2270.92
Positive
200DMA
2144.74
Positive
Market Momentum
MACD
86.36
Negative
RSI
61.68
Neutral
STOCH
30.89
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥30.44B8.44
2.01%3.36%29.57%
74
Outperform
¥45.90B16.97
3.38%6.28%-36.71%
73
Outperform
¥31.74B22.20
1.58%10.43%-0.65%
71
Outperform
¥36.11B18.52
10.14%8.40%-30.66%
68
Neutral
¥31.53B12.82
1.67%1.56%40.56%
65
Neutral
$27.19B15.58-4.44%2.56%1.05%4.97%
64
Neutral
¥40.71B121.59
1.50%0.78%-40.15%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2918
WARABEYA NICHIYO HOLDINGS Co., Ltd.
2,662.00
192.04
7.78%
JP:2820
Yamami Co.
4,570.00
1,144.45
33.41%
JP:2831
Hagoromo Foods Corporation
3,350.00
178.34
5.62%
JP:2910
Rock Field Co., Ltd.
1,530.00
44.33
2.98%
JP:2915
KENKO Mayonnaise Co., Ltd.
1,888.00
-269.26
-12.48%
JP:2923
Sato Foods Co., Ltd.
7,160.00
-113.27
-1.56%

WARABEYA NICHIYO HOLDINGS Co., Ltd. Corporate Events

Warabeya Nichiyo Extends Share-based Remuneration Plan to 2030
Jul 8, 2025

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
Jul 8, 2025

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
Jul 8, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025