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

• Market Cap: ¥23.76B
• Dividend Yield: 3.05%
• Average Volume (3M): 124.80K
• Price to Earnings (P/E): 83.3
• Beta (1Y): 0.95
• Revenue Growth: -2.24%
• EPS Growth: -92.72%
• Country: JP
• Employees: 642
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -47.24
• Shares Outstanding: 29,079,000
• 10 Day Avg. Volume: 128,840
• 30 Day Avg. Volume: 124,800
• PEG Ratio: -0.02
• Price to Book (P/B): 5.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.46
• 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

• Rating: 56 Neutral
• Price Target: ¥940.00 ▲(14.63%Upside)

Pharma Foods International Co., Ltd. has a moderate overall stock score driven primarily by financial performance and technical analysis. The company shows strong profitability but faces challenges with liquidity and leverage. Technically, the stock shows mixed signals with potential downside risk. High valuation metrics further weigh down the score.

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 functional food ingredients and supplements. The company markets its products to both consumer and industrial clients, including food and beverage manufacturers who incorporate these ingredients into their products. Additionally, the company engages in research collaborations and partnerships with other firms and research institutions to develop new bioactive compounds, which can also contribute to its revenue streams. Licensing agreements for its proprietary technologies and compounds further enhance its earnings potential.

Pharma Foods International Co., Ltd. Financial Statement Overview

Summary

Pharma Foods International Co., Ltd. shows strong income statement performance with excellent gross margins, though net profit margins are under pressure. The balance sheet is stable but highly leveraged, indicating financial risk. Cash flow concerns are notable, with negative free cash flow and weak cash generation from operations.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	60.35B	62.15B	68.57B	60.19B	46.75B	15.35B
Gross Profit	47.90B	48.75B	55.28B	48.11B	39.73B	12.18B
EBITDA	5.18B	6.00B	4.16B	1.60B	5.86B	1.01B
Net Income	2.67B	3.21B	3.08B	-374.00M	3.84B	690.00M
Balance Sheet
Total Assets	32.98B	36.57B	36.23B	31.16B	20.94B	10.10B
Cash, Cash Equivalents and Short-Term Investments	11.11B	15.67B	16.31B	8.85B	9.79B	3.28B
Total Debt	12.44B	16.89B	20.10B	16.86B	4.90B	3.58B
Total Liabilities	20.93B	24.99B	26.60B	24.09B	12.48B	5.19B
Stockholders Equity	12.05B	11.59B	9.63B	7.07B	8.46B	4.91B
Cash Flow
Free Cash Flow	-406.00M	4.51B	5.72B	-6.54B	5.76B	-1.46B
Operating Cash Flow	19.00M	5.49B	6.13B	-6.07B	5.94B	-547.06M
Investing Cash Flow	-464.00M	-1.39B	-1.01B	-2.54B	-442.00M	-860.93M
Financing Cash Flow	-4.11B	-4.84B	2.34B	7.68B	1.03B	375.63M

Pharma Foods International Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 820.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 820 is below the 20-day moving average (MA) of 890.80, below the 50-day MA of 918.86, and below the 200-day MA of 916.98, indicating a bearish trend. The MACD of -29.91 indicates Positive momentum. The RSI at 20.68 is Positive, neither overbought nor oversold. The STOCH value of 5.26 is Positive, 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
4577	73 Outperform	¥29.85B	14.04		3.53%	8.07%	-45.20%
2929	56 Neutral	¥23.76B	83.32		3.05%	-2.24%	-92.72%
Sector *	51 Neutral	$7.55B	0.39	-61.90%	2.32%	17.14%	1.55%
FUP		€195.07M	9.98	7.01%	2.89%	―	―
4538	65 Neutral	¥18.54B	6.46		3.96%	9.31%	-340.82%
4512	52 Neutral	¥10.55B	163.73		0.97%	0.66%	-40.86%
4574		¥15.83B	21.60		―	―	―

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.