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

• Market Cap: ¥19.79B
• Dividend Yield: 3.65%
• Average Volume (3M): 110.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 9.53%
• EPS Growth: -155.76%
• Country: JP
• Employees: 642
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -65.52
• Shares Outstanding: 29,079,000
• 10 Day Avg. Volume: 122,950
• 30 Day Avg. Volume: 110,460
• PEG Ratio: -0.78
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -12.86
• 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: 47 Neutral
• Price Target: ¥676.00 ▼(-1.02% Downside)

Pharma Foods International's overall stock score is primarily impacted by its financial performance and technical analysis. The company's positive revenue growth is overshadowed by declining profitability and cash flow issues. Technical indicators suggest bearish momentum, further weighing down the score. The valuation is concerning due to a negative P/E ratio, though the dividend yield provides some appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for the company's products and effective market strategies, supporting long-term business expansion.

Improved Leverage

Reduced leverage enhances financial stability and flexibility, allowing the company to better manage economic fluctuations and invest in growth opportunities.

Strong Gross Profit Margin

A strong gross profit margin suggests effective cost control and pricing strategies, providing a buffer against operational cost increases and supporting profitability.

Negative Factors

Declining Profitability Margins

Declining profitability margins may indicate rising costs or pricing pressures, which can erode earnings and affect long-term financial health.

Cash Flow Issues

Cash flow issues can limit the company's ability to invest in growth and meet financial obligations, posing risks to operational stability and expansion plans.

Decreased Return on Equity

A decrease in return on equity indicates less efficient use of shareholder funds, potentially impacting investor confidence and future capital raising efforts.

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 primarily through the sale of its dietary supplements and functional food products. The company employs a multi-channel distribution strategy that includes direct sales, e-commerce platforms, and partnerships with healthcare providers and retail outlets. Key revenue streams include bulk sales to distributors, retail product sales, and subscription-based models for recurring customers. Additionally, the company may engage in collaborative partnerships with other healthcare firms for co-development projects, which can provide significant income through joint marketing efforts and shared research initiatives.

Pharma Foods International Co., Ltd. Financial Statement Overview

Summary

Pharma Foods International shows mixed financial performance. Revenue growth is positive, but declining profitability and cash flow challenges pose significant risks. The balance sheet indicates improved leverage, yet cash flow issues need urgent attention to ensure long-term stability.

Income Statement

Pharma Foods International has shown a consistent revenue growth trend, with a notable 5.6% increase in the latest year. However, profitability margins have declined, with the net profit margin dropping significantly from 5.16% to 0.56%. The gross profit margin remains strong at over 80%, indicating efficient cost management. The decline in EBIT and EBITDA margins suggests increased operational costs or reduced pricing power.

Balance Sheet

The company's debt-to-equity ratio has improved from 2.38 to 1.09, indicating a reduction in leverage and a more balanced capital structure. However, the return on equity has decreased significantly, reflecting lower profitability. The equity ratio remains stable, suggesting a solid asset base relative to equity.

Cash Flow

Pharma Foods International's cash flow situation is concerning, with negative operating and free cash flows in the latest period. The free cash flow to net income ratio is high, indicating cash flow issues despite reported profits. The company needs to improve cash generation to support operations and growth.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	65.26B	62.15B	68.57B	60.19B	46.75B
Gross Profit	52.58B	48.75B	55.28B	48.11B	39.73B
EBITDA	3.15B	6.00B	4.16B	1.97B	5.96B
Net Income	368.00M	3.21B	3.08B	-374.00M	3.84B
Balance Sheet
Total Assets	32.65B	36.57B	36.23B	31.16B	20.94B
Cash, Cash Equivalents and Short-Term Investments	9.16B	15.67B	16.31B	8.85B	9.79B
Total Debt	12.63B	16.89B	20.10B	16.86B	4.90B
Total Liabilities	21.10B	24.99B	26.60B	24.09B	12.48B
Stockholders Equity	11.55B	11.59B	9.63B	7.07B	8.46B
Cash Flow
Free Cash Flow	-1.98B	4.51B	5.72B	-6.54B	5.76B
Operating Cash Flow	-1.09B	5.49B	6.13B	-6.07B	5.94B
Investing Cash Flow	-950.00M	-1.39B	-1.01B	-2.54B	-442.00M
Financing Cash Flow	-4.47B	-4.84B	2.34B	7.68B	1.03B

Pharma Foods International Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 683.00
• 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 Negative. The current price of 683 is below the 20-day moving average (MA) of 707.25, below the 50-day MA of 765.82, and below the 200-day MA of 855.30, indicating a bearish trend. The MACD of -26.41 indicates Negative momentum. The RSI at 38.34 is Neutral, neither overbought nor oversold. The STOCH value of 56.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	¥46.41B	15.46	6.49%	2.39%	12.01%	-51.38%
4574	63 Neutral	¥14.72B	17.31	―	―	-5.41%	―
4577	63 Neutral	¥40.68B	20.57	―	2.75%	7.56%	-48.91%
4538	60 Neutral	¥20.47B	-4.99	―	3.71%	7.50%	-281.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4512	48 Neutral	¥10.00B	138.55	―	1.06%	5.42%	-62.03%
2929	47 Neutral	¥19.79B	-10.52	―	3.65%	9.53%	-155.76%

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.