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

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

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JP

WARABEYA NICHIYO HOLDINGS Co., Ltd.

(2918)

Rating:66Neutral
Price Target:
¥2,401.00
▲(6.10%Upside)
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. (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, 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
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.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
223.11B222.47B207.01B194.42B192.33B194.31B
Gross Profit
38.61B37.84B36.95B33.51B32.11B31.32B
EBIT
5.81B4.52B6.38B4.99B4.44B3.33B
EBITDA
12.37B11.68B11.01B9.07B10.09B7.00B
Net Income Common Stockholders
4.44B2.68B4.27B2.81B3.26B682.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.95B8.45B8.12B11.19B9.67B8.95B
Total Assets
119.53B120.92B101.96B92.68B82.18B82.27B
Total Debt
29.77B34.24B21.66B15.15B9.31B11.21B
Net Debt
15.82B25.80B13.54B3.96B-358.00M2.27B
Total Liabilities
61.89B61.80B47.65B41.16B34.28B37.90B
Stockholders Equity
55.34B56.67B53.30B50.50B47.56B44.16B
Cash FlowFree Cash Flow
0.00-5.28B-3.70B332.00M4.28B2.88B
Operating Cash Flow
0.0012.48B9.37B7.43B8.11B8.34B
Investing Cash Flow
0.00-20.67B-13.54B-7.54B-3.96B-5.23B
Financing Cash Flow
0.008.26B845.00M692.00M-3.55B-1.92B

WARABEYA NICHIYO HOLDINGS Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2263.00
Price Trends
50DMA
2230.60
Positive
100DMA
2154.57
Positive
200DMA
2119.62
Positive
Market Momentum
MACD
10.24
Positive
RSI
51.34
Neutral
STOCH
30.94
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 2263 is above the 20-day moving average (MA) of 2260.55, above the 50-day MA of 2230.60, and above the 200-day MA of 2119.62, indicating a neutral trend. The MACD of 10.24 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.94 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
75
Outperform
¥29.36B8.14
2.11%3.36%30.33%
71
Outperform
¥38.74B19.87
0.78%8.40%-30.66%
66
Neutral
¥39.52B14.75
4.00%7.47%-37.31%
65
Neutral
$8.92B15.034.68%6.11%3.59%-2.49%
64
Neutral
¥38.85B116.03
1.92%0.78%-40.15%
61
Neutral
¥31.56B22.01
1.59%10.43%-0.65%
60
Neutral
¥30.40B12.36
1.86%1.56%40.56%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2918
WARABEYA NICHIYO HOLDINGS Co., Ltd.
2,258.00
61.63
2.81%
JP:2820
Yamami Co.
4,555.00
1,432.66
45.88%
JP:2831
Hagoromo Foods Corporation
3,230.00
58.34
1.84%
JP:2910
Rock Field Co., Ltd.
1,434.00
58.67
4.27%
JP:2915
KENKO Mayonnaise Co., Ltd.
1,810.00
-42.44
-2.29%
JP:2923
Sato Foods Co., Ltd.
7,670.00
238.18
3.20%

WARABEYA NICHIYO HOLDINGS Co., Ltd. Corporate Events

Warabeya Nichiyo Holdings Announces Leadership Restructuring
Apr 10, 2025

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
Apr 10, 2025

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
Apr 10, 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
Apr 10, 2025

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.

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.