Pharma Foods International Co., Ltd. (2929) AI Stock Analysis

• Market Cap: ¥24.42B
• Dividend Yield: 2.96%
• Average Volume (3M): 162.65K
• Price to Earnings (P/E): 85.9
• Beta (1Y): 0.94
• Revenue Growth: -2.24%
• EPS Growth: -92.72%
• Country: JP
• Employees: 642
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -47.24
• Shares Outstanding: 29,079,000
• 10 Day Avg. Volume: 177,140
• 30 Day Avg. Volume: 162,646
• PEG Ratio: -0.49
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -58.90
• 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: ¥940.00
• Price Target Upside: 11.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ¥831.00 ▼(-1.42%Downside)

Pharma Foods International Co., Ltd. faces significant challenges. The most impactful factor is the bearish technical outlook, indicating potential further downside. Financial performance shows strong operational efficiency but is offset by high leverage and cash flow concerns, while high valuation raises caution. The absence of earnings call data and corporate events limits further insights.

Pharma Foods International Co., Ltd. Business Overview & Revenue Model

Company Description

Pharma Foods International Co., Ltd. engages in the development and sale of functional food ingredients in Japan. Its products include Pharma-GABA, Bonepep, Ovopron (egg yolk globulin), Delicious Catechin, RunPep, and enriched Folic Acid Egg, as well as iHA, a substance that stimulates secretion of hyaluronic acid. Pharma Foods International Co., Ltd. has licensing agreement with Mitsubishi Tanabe Pharma Corporation for a new therapeutic antibody to treat autoimmune diseases. Pharma Foods International Co., Ltd. was founded in 1997 and is based in Kyoto, Japan.

How the Company Makes Money

Pharma Foods International Co., Ltd. generates revenue through the sale of its functional food ingredients, supplements, and pharmaceutical products. The company targets various markets, including the health-conscious consumer segment and the pharmaceutical industry. Key revenue streams include product sales to food manufacturers, direct sales of supplements to consumers, and partnerships with pharmaceutical companies for the development and distribution of healthcare products. Strategic collaborations and licensing agreements also contribute to its earnings, allowing the company to leverage external expertise and expand its market reach.

Pharma Foods International Co., Ltd. Financial Statement Overview

Summary

Pharma Foods International Co., Ltd. demonstrates strong profitability and efficiency, with a solid gross profit margin. However, it faces challenges with declining net profit margins and volatile revenue growth. The balance sheet is stable but highly leveraged, and cash flow issues highlight liquidity concerns.

Income Statement

Pharma Foods International Co., Ltd. has shown consistent growth with a strong gross profit margin of 79.4% in TTM, indicating excellent cost management. However, the net profit margin decreased to 4.4% from 5.2% annually, suggesting pressure on profitability. The revenue growth rate has been volatile, with a decline in the recent TTM period. EBIT and EBITDA margins are robust at 7% and 8.6%, respectively, but the decline from previous years highlights potential operational challenges.

Balance Sheet

The company's balance sheet reflects a stable equity ratio of 36.5% in TTM, indicating a solid financial foundation. However, the debt-to-equity ratio is high at 1.03, suggesting significant leverage. Return on equity has improved to 22.1%, showcasing stronger profitability relative to equity, yet the high leverage presents financial risk.

Cash Flow

The cash flow situation is concerning, with a negative free cash flow in the TTM period. The operating cash flow to net income ratio is low at 0.007, indicating weak cash generation from operations relative to net income. Free cash flow has seen a steep decline, pointing to liquidity challenges.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	62.15B	68.57B	60.19B	46.75B	15.35B
Gross Profit	48.75B	55.28B	48.11B	39.73B	12.18B
EBITDA	6.00B	4.16B	1.60B	5.86B	1.01B
Net Income	3.21B	3.08B	-374.00M	3.84B	690.00M
Balance Sheet
Total Assets	36.57B	36.23B	31.16B	20.94B	10.10B
Cash, Cash Equivalents and Short-Term Investments	15.67B	16.31B	8.85B	9.79B	3.28B
Total Debt	16.89B	20.10B	16.86B	4.90B	3.58B
Total Liabilities	24.99B	26.60B	24.09B	12.48B	5.19B
Stockholders Equity	11.59B	9.63B	7.07B	8.46B	4.91B
Cash Flow
Free Cash Flow	4.51B	5.72B	-6.54B	5.76B	-1.46B
Operating Cash Flow	5.49B	6.13B	-6.07B	5.94B	-547.06M
Investing Cash Flow	-1.39B	-1.01B	-2.54B	-442.00M	-860.93M
Financing Cash Flow	-4.84B	2.34B	7.68B	1.03B	375.63M

Pharma Foods International Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 843.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2929, the sentiment is Neutral. The current price of 843 is above the 20-day moving average (MA) of 834.30, below the 50-day MA of 900.06, and below the 200-day MA of 912.52, indicating a neutral trend. The MACD of -18.83 indicates Negative momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 49.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2929.

Pharma Foods International Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4554	74 Outperform	€32.57B	10.23	7.01%	3.00%	13.46%	-46.40%
4577	68 Neutral	¥34.61B	18.34		3.04%	8.07%	-45.20%
4538	65 Neutral	¥18.51B	6.46		3.98%	9.31%	-340.82%
Sector *	60 Neutral	HK$16.12B	5.55	-7.44%	3.87%	11.55%	-28.15%
2929	54 Neutral	¥24.42B	85.86		2.96%	-2.24%	-92.72%
4512	50 Neutral	¥10.03B	155.65		1.04%	0.66%	-40.86%

Pharma Foods International Co., Ltd. Corporate Events

Pharma Foods International Expands with New Manufacturing Facility

Pharma Foods International Co., Ltd. has announced the construction of a new manufacturing facility for its subsidiary, Meiji Yakuhin Co., Ltd., as part of its strategy to become a leading healthcare company. This investment, amounting to JPY 12.5 billion, aims to boost production capacity and expand the sales of Meiji Yakuhin’s own-brand products, targeting net sales of JPY 23 billion by 2030. The move is expected to enhance the company’s market position and address common healthcare needs, contributing significantly to its growth and vision.

Pharma Foods Reports Nine-Month Financial Results with Recovery Forecast

Pharma Foods International Co., Ltd. reported a slight decline in net sales for the nine months ending April 30, 2025, with a decrease of 0.8% compared to the previous year. The company experienced a loss in operating and ordinary profit, as well as a negative profit attributable to owners of the parent. Despite these challenges, the company forecasts a recovery in the fiscal year ending July 31, 2025, with expected increases in net sales and profits, although at lower growth rates compared to the previous year.

Pharma Foods International Executes Share Repurchase Strategy

Pharma Foods International Co., Ltd. has repurchased 184,600 of its own common shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3, at a cost of ¥175,370,000. This move is part of the company’s strategy to enhance capital efficiency, return capital to shareholders, and support equity-based compensation, reflecting its commitment to optimizing shareholder value.

Pharma Foods International Announces Share Repurchase Program

Pharma Foods International Co., Ltd. has announced a share repurchase program, approved by its Board of Directors, to acquire up to 200,000 common shares at a maximum cost of ¥190,000,000. This initiative aims to enhance capital efficiency, provide equity-based compensation, and return capital to shareholders, reflecting a strategic move to optimize shareholder value.