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

• Market Cap: ¥55.97B
• Dividend Yield: 3.28%
• Average Volume (3M): 51.93K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.39
• Revenue Growth: 4.98%
• EPS Growth: -10.23%
• Country: JP
• Employees: 1,948
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 142.47
• Shares Outstanding: 17,625,660
• 10 Day Avg. Volume: 43,660
• 30 Day Avg. Volume: 51,926
• PEG Ratio: -0.36
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -6.78
• 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: 73 Outperform
• Price Target: ¥3,646.00 ▲(9.82% Upside)

The overall stock score is driven primarily by strong technical analysis and reasonable valuation. The stock's positive momentum and attractive dividend yield are significant strengths. However, financial performance is a concern due to declining net margins and increased leverage, which could pose risks if not managed effectively.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Brand Recognition

Strong brand recognition enhances customer loyalty and repeat purchases, providing a competitive edge and supporting sustained revenue streams.

Market Expansion

Expanding product lines and entering new markets can drive growth and diversify revenue sources, reducing reliance on any single market segment.

Negative Factors

Declining Net Margins

Declining net margins can indicate rising costs or inefficiencies, potentially impacting profitability and limiting reinvestment in growth initiatives.

Rising Leverage

Increased leverage can strain financial flexibility, posing risks if market conditions worsen, and may lead to higher interest expenses.

Negative Free Cash Flow

Negative free cash flow can limit the company's ability to invest in growth opportunities and manage debt, affecting long-term financial health.

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

Company Description

Warabeya Nichiyo Holdings Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of food products for convenience stores in Japan and internationally. The company offers cooked rice products, bento meal boxes, onigiri rice balls and sushi, and chilled bento meal boxes; and bread products, side dishes and noodles, and chilled Japanese sweets. It also procures, processes, and sells food ingredients; sorts and delivers food products, ingredients, and logistics systems; sells food processing machines; and provides office services. The company was formerly known as Warabeya Nichiyo Co., Ltd. and changed its name to Warabeya Nichiyo Holdings Co., Ltd. in September 2016. Warabeya Nichiyo Holdings Co., Ltd. was incorporated in 1964 and is headquartered in Tokyo, Japan.

How the Company Makes Money

WARABEYA NICHIYO HOLDINGS generates revenue through multiple streams, primarily by selling its food products to retailers, wholesalers, and food service companies. Key revenue sources include the sale of packaged snacks, confectionery items, and ready-to-eat meals. The company benefits from strong brand recognition and customer loyalty, which drives repeat purchases. Additionally, partnerships with retailers and distributors enhance its market reach and visibility. Seasonal promotions and product launches contribute to spikes in sales, while cost management strategies help maintain profitability. The company's focus on expanding its product line and entering new markets also plays a crucial role in sustaining its revenue growth.

WARABEYA NICHIYO HOLDINGS Co., Ltd. Financial Statement Overview

Summary

The company 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, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	228.47B	222.47B	207.01B	194.42B	192.33B	194.31B
Gross Profit	40.26B	37.84B	36.95B	33.51B	32.11B	31.32B
EBITDA	11.03B	11.68B	11.01B	9.07B	10.09B	7.00B
Net Income	3.87B	2.68B	4.27B	2.81B	3.26B	682.00M
Balance Sheet
Total Assets	128.97B	120.92B	101.96B	92.68B	82.18B	82.27B
Cash, Cash Equivalents and Short-Term Investments	8.80B	8.45B	8.12B	11.19B	9.67B	8.95B
Total Debt	35.39B	34.24B	21.66B	15.15B	9.31B	11.21B
Total Liabilities	68.87B	61.80B	47.65B	41.16B	34.28B	37.90B
Stockholders Equity	57.70B	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: Neutral
• Last Price: 3320.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2918, the sentiment is Neutral. The current price of 3320 is above the 20-day moving average (MA) of 3277.25, above the 50-day MA of 3202.00, and above the 200-day MA of 2591.30, indicating a neutral trend. The MACD of 8.39 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 6.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2918	73 Outperform	¥55.97B	14.43	―	3.28%	4.98%	-10.23%
2915	72 Outperform	¥32.24B	12.14	―	2.27%	-0.25%	-41.09%
2820	66 Neutral	¥31.35B	19.11	―	1.73%	10.89%	25.32%
2831	64 Neutral	¥30.73B	12.45	―	2.00%	0.16%	10.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2923	62 Neutral	¥38.99B	13.70	―	0.80%	8.19%	42.84%
2910	46 Neutral	¥35.50B	293.11	―	1.65%	-1.17%	-84.81%

WARABEYA NICHIYO HOLDINGS Co., Ltd. Corporate Events

Warabeya Nichiyo Holdings Enhances Regional Focus with New Subsidiaries

Warabeya Nichiyo Holdings Co., Ltd. announced the establishment of three new wholly owned subsidiaries to enhance its regional operations through an absorption-type company split. This strategic move aims to strengthen the company’s focus on local production and region-specific product development, allowing each subsidiary to cater to the unique preferences of their respective regions, thereby optimizing the company’s operational efficiency and market responsiveness.

Warabeya Nichiyo Holdings Reports Strong Financial Performance and Raises Dividend Forecast

Warabeya Nichiyo Holdings Co., Ltd. announced a significant improvement in its financial performance for the six months ended August 31, 2025, surpassing its previous forecasts due to strong domestic sales and better-than-expected performance from new plants and overseas operations. The company has revised its full-year financial forecast upwards and increased its interim and year-end dividend forecasts, reflecting its strong financial results and commitment to shareholder returns.

WARABEYA NICHIYO Reports Strong Financial Growth and Increased Dividends

WARABEYA NICHIYO HOLDINGS Co., Ltd. reported a notable increase in its financial performance for the six months ending August 31, 2025, with net sales rising by 5.3% and operating profit surging by 24.3% compared to the previous year. The company also announced an increase in dividends, reflecting its strong financial health and commitment to delivering value to its shareholders.