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

• Market Cap: ¥19.35B
• Dividend Yield: 3.65%
• Average Volume (3M): 110.46K
• Price to Earnings (P/E): 72.7
• Beta (1Y): 0.76
• Revenue Growth: 9.53%
• EPS Growth: -155.76%
• Country: JP
• Employees: 642
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.43
• 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: 52 Neutral
• Price Target: ¥679.00 ▲(0.00% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by weakening profitability and negative operating/free cash flow, despite continued revenue growth and improved leverage. Technicals are mixed (short-term strength but longer-term downtrend), and valuation is a headwind due to a very high P/E, with the dividend yield providing only partial support.

Positive Factors

Revenue Growth

Consistent revenue growth (+5.6% latest year) indicates durable demand for the company’s supplements and functional foods across channels. Steady top-line expansion supports scale economics, helps absorb fixed costs, and provides a platform for reinvestment in product development and distribution over the next 2–6 months.

High Gross Margin

An 80%+ gross margin signals strong product-level profitability and pricing power in formulations and branded supplements. High gross margins provide a structural buffer against raw material inflation and enable allocation of funds to marketing, R&D, or channel expansion without immediately eroding core profitability.

Reduced Leverage

The material reduction in debt-to-equity (2.38 → 1.09) meaningfully improves financial flexibility and lowers interest burden. Better leverage strengthens the balance sheet, making the company less vulnerable to funding shocks and better positioned to support operations, M&A, or working-capital needs over the medium term.

Negative Factors

Net Margin Collapse

A plunge in net margin from 5.16% to 0.56% is a structural red flag: it implies rising operating costs, weaker pricing power, or one-off losses that are eroding the company’s ability to convert sales into profits. Sustained low net margins will limit retained earnings and constrain strategic investments.

Negative Cash Flow

Negative operating and free cash flow despite reported revenue growth indicates weak cash conversion and working capital stress. Persistent cash outflows erode liquidity, force reliance on external financing, and jeopardize dividend capacity or funding for product and channel expansion in the coming quarters.

Falling ROE & Margins

Declining ROE and compressed EBIT/EBITDA margins point to weakening underlying profitability and capital efficiency. This trend reduces shareholder value creation, limits reinvestment capacity, and heightens sensitivity to competitive pressure or cost shocks over a medium-term horizon.

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

Revenue is growing (+5.6% latest year) and gross margin remains strong (80%+), but profitability has deteriorated sharply (net margin down from 5.16% to 0.56%). Balance sheet leverage improved (debt-to-equity 2.38 to 1.09), yet return on equity fell, and cash flow is the key weakness with negative operating and free cash flow in the latest period.

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	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	67.84B	65.26B	62.15B	68.57B	60.19B	46.75B
Gross Profit	54.56B	52.53B	48.65B	55.21B	48.06B	39.68B
EBITDA	144.00M	3.15B	6.02B	4.16B	1.60B	5.86B
Net Income	-1.69B	368.00M	3.21B	3.08B	-374.00M	3.84B
Balance Sheet
Total Assets	32.26B	32.78B	36.57B	36.23B	31.16B	20.94B
Cash, Cash Equivalents and Short-Term Investments	7.69B	9.16B	15.67B	16.31B	8.85B	9.79B
Total Debt	14.85B	12.66B	16.90B	20.12B	16.89B	4.92B
Total Liabilities	22.48B	21.23B	24.99B	26.60B	24.08B	12.48B
Stockholders Equity	9.77B	11.55B	11.59B	9.63B	7.07B	8.46B
Cash Flow
Free Cash Flow	-4.83B	-1.98B	4.54B	5.74B	-6.53B	5.78B
Operating Cash Flow	-3.89B	-1.09B	5.49B	6.13B	-6.07B	5.94B
Investing Cash Flow	-1.02B	-950.00M	-1.39B	-1.01B	-2.54B	-442.00M
Financing Cash Flow	1.50B	-4.47B	-4.84B	2.34B	7.68B	1.03B

Pharma Foods International Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 679.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2929, the sentiment is Positive. The current price of 679 is above the 20-day moving average (MA) of 622.90, above the 50-day MA of 647.54, and below the 200-day MA of 775.26, indicating a neutral trend. The MACD of 4.39 indicates Negative momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 87.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4530	73 Outperform	¥440.62B	15.43	7.11%	2.43%	3.53%	38.23%
4540	69 Neutral	¥287.90B	7.12	9.05%	3.30%	10.51%	9.62%
4524	65 Neutral	¥9.38B	15.24	―	2.55%	3.23%	42.87%
4539	64 Neutral	¥6.33B	11.64	―	3.21%	4.25%	―
2929	52 Neutral	¥19.35B	72.72	―	3.65%	9.53%	-155.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4512	48 Neutral	¥12.11B	7.11	―	1.06%	5.42%	-62.03%

Pharma Foods International Co., Ltd. Corporate Events

Pharma Foods Swings to Interim Loss but Signals Full-Year Profit Rebound

Pharma Foods International reported consolidated net sales of ¥32.44 billion for the six months ended January 31, 2026, up 8.7% year on year, but swung to an operating loss of ¥2.36 billion and a net loss attributable to owners of the parent of ¥1.82 billion, reflecting a sharp deterioration from the prior-year profit. The company’s equity ratio declined to 30.3% from 35.4%, yet it maintained an interim dividend of ¥12.50 per share and kept its full-year dividend forecast at ¥25, while revising its earnings outlook to project modest full-year sales growth, a recovery to operating profit of ¥2.0 billion, and a significant rebound in net profit, signaling management’s expectation of a turnaround despite current margin and balance sheet pressure.

The forecast for the fiscal year ending July 31, 2026 calls for net sales of ¥67.0 billion, up 2.7%, operating and ordinary profit of ¥2.0 billion each, and profit attributable to owners of the parent of ¥1.5 billion, implying a sharp year-on-year earnings recovery and basic earnings per share of ¥51.65. While the latest half-year loss underlines near-term challenges and weaker profitability, the continued dividend, unchanged payout plan, and upwardly revised profit outlook suggest the company is prioritizing shareholder returns and is confident in stabilizing operations, though investors will watch closely whether the anticipated rebound materializes amid competitive and cost pressures.

The most recent analyst rating on (JP:2929) stock is a Hold with a Yen564.00 price target. To see the full list of analyst forecasts on Pharma Foods International Co., Ltd. stock, see the JP:2929 Stock Forecast page.

Pharma Foods Raises Profit Outlook for FY2026 on Strong B2C and New Products

Pharma Foods International has revised its full-year consolidated forecast for the fiscal year ending July 2026, projecting slightly lower net sales of JPY 67 billion but significantly higher profitability. The company now expects operating and ordinary profit of JPY 2 billion and net income of JPY 1.5 billion, driven by improved capital efficiency and higher margins, with earnings per share forecast to rise to JPY 51.65.

Management attributes the stronger earnings outlook to robust B2C performance, particularly in its flagship Newmo Series and the rapid growth of new products such as LACTORON Tablets, TENRAI SEIRYU Tablets, and HEALTH PAN C Tablets 2000. These offerings are becoming key profit drivers as the group prioritizes profitability and a stronger financial base, aiming to support sustainable growth and enhance long-term corporate value for stakeholders.

The most recent analyst rating on (JP:2929) stock is a Hold with a Yen564.00 price target. To see the full list of analyst forecasts on Pharma Foods International Co., Ltd. stock, see the JP:2929 Stock Forecast page.

Pharma Foods Confirms Stable Interim Dividend Amid Growth-Focused Investment Strategy

Pharma Foods International Co., Ltd., a Tokyo Prime-listed health and functional foods company, focuses on developing high-value ingredients and products while expanding its market reach through R&D, new business creation, advertising, and strategic M&A. Its management philosophy emphasizes maximizing long-term shareholder value through a disciplined capital allocation framework.

The company’s board has approved an interim dividend of ¥12.50 per share with a January 31, 2026 record date, matching both the prior-year interim payout and its latest forecast. Funded from retained earnings and totaling ¥363 million, the dividend underscores management’s commitment to stable, predictable shareholder returns while continuing to invest aggressively in growth initiatives.

Dividend forecasts for the fiscal year call for a total annual payout of ¥25.00 per share, in line with the previous year’s full-year dividend. This consistency signals confidence in the company’s operational momentum and financial position, providing investors with visibility on cash returns even as Pharma Foods accelerates its growth-focused spending.

The most recent analyst rating on (JP:2929) stock is a Hold with a Yen655.00 price target. To see the full list of analyst forecasts on Pharma Foods International Co., Ltd. stock, see the JP:2929 Stock Forecast page.