euglena Co., Ltd. (2931) AI Stock Analysis

• Market Cap: ¥52.50B
• Dividend Yield: N/A
• Average Volume (3M): 958.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 3.68%
• EPS Growth: N/A
• Country: JP
• Employees: 897
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -3.11
• Shares Outstanding: 139,273,060
• 10 Day Avg. Volume: 1,429,850
• 30 Day Avg. Volume: 958,053
• PEG Ratio: -3.13
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 10.97
• 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): 4
• Revenue Forecast (FY): ¥48.90B

• Rating: 48 Neutral
• Price Target: ¥392.00 ▼(-3.69% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by continued net losses (negative P/E) and a weak technical trend with the stock trading below major moving averages. These risks are partially offset by improving fundamentals, including strong revenue growth, a shift to positive operating profit, and materially better operating and free cash flow in 2024–2025.

Positive Factors

Multi-year revenue growth

Sustained revenue expansion over multiple years demonstrates durable commercial traction and scale in both consumer and B2B channels. Higher top-line provides capacity to absorb fixed costs, negotiate better supplier terms, fund R&D and marketing, and supports a continued investment-led growth strategy.

Operating profitability recovery

A shift to positive operating profit that improved in 2025 signals structural improvement in core margins and operational execution. Persistent operating profitability enables internal funding of growth initiatives, demonstrates scalable economics, and is a key step toward sustainable net profitability.

Strong free cash flow generation

Material free cash flow in 2025 reflects meaningful cash conversion from operations and improved cash discipline. Durable FCF reduces reliance on external financing, supports capex and commercialization, and provides a financial buffer while the company continues to close residual profitability gaps.

Negative Factors

Ongoing net losses / negative ROE

Persisting net losses and negative ROE constrain retained earnings and shareholder returns despite operational gains. Until net profitability is consistently achieved, the company faces limits on dividend capacity, heightened scrutiny on capital allocation, and potential dilution risks if external capital is needed.

Modest cash conversion and historical volatility

A low operating cash flow coverage ratio indicates that a meaningful portion of revenue does not convert to cash, reducing earnings quality. Combined with earlier-period volatility in cash flows, this modest conversion increases sensitivity to margin pressure or working capital swings and weakens predictability of funding for growth.

Rising absolute debt since 2023

Although leverage ratios improved, rising absolute debt increases interest and refinancing burden, especially while net losses persist. Higher nominal debt can constrain strategic flexibility, elevate fixed financial costs, and create risk if cash generation falters or capital markets tighten, limiting long-term optionality.

euglena Co., Ltd. Business Overview & Revenue Model

Company Description

Euglena Co., Ltd. engages in the research, development, production, and sale of microalgae. It operates through Healthcare Business and Energy/Environment Business segments. The company also manufactures and sells foods and cosmetics using euglena. In addition, it offers health foods, beverages, confectionery, and sports food products. Further, the company develops biofuel technology and environmental related technology for microalgae; and invests in biotechnology related business. It distributes its products at convenience stores, drugstores, supermarkets, beauty salons, and variety shops. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Euglena Co., Ltd. generates revenue through multiple streams, primarily by selling dietary supplements and functional foods that incorporate Euglena as a key ingredient. The company has developed a range of products targeting health-conscious consumers, including capsules, powders, and fortified foods that emphasize the nutritional benefits of Euglena, such as its high protein and vitamin content. Additionally, Euglena Co., Ltd. earns income from its cosmetics division, where it offers skincare products utilizing the antioxidant properties of Euglena. The company may also engage in partnerships with other firms in the food, health, and beauty industries to expand its product offerings and market reach. Furthermore, the company invests in research and development to innovate new applications for Euglena and enhance its existing products, which can contribute to long-term revenue growth.

euglena Co., Ltd. Financial Statement Overview

Summary

Operational recovery is evident: revenue has grown strongly and operating profit turned positive and improved further, while cash generation and free cash flow strengthened materially in 2024–2025. Offsetting this, the company is still net loss-making with negative ROE, and leverage—though improved—still requires monitoring given higher absolute debt since 2023.

Income Statement

Revenue has expanded meaningfully over the period (from ~¥13.3B in 2020 to ~¥50.4B in 2025), and operating performance has improved sharply, with operating profit turning positive in 2024 and rising further in 2025. Gross margin remains very strong and stable (roughly high-60% to low-70%). However, the company is still reporting net losses (2025 net margin ~-1.6%), indicating profitability is not yet fully established after several years of heavier losses.

Balance Sheet

Leverage has improved versus 2021–2023 (debt-to-equity peaked above 1.2x in 2023 and has since moved below 0.9x in 2025), supporting a more stable capital structure. Equity is solid in absolute terms (~¥31.0B in 2025) with a sizeable asset base. The key weakness is that returns remain negative due to net losses (negative return on equity in each year shown), and debt levels have trended higher in absolute terms since 2023.

Cash Flow

Cash generation strengthened materially in the last two years, with operating cash flow rising to ~¥5.2B and free cash flow to ~¥5.0B in 2025 (also strong improvement from 2023’s near-breakeven/negative free cash flow). Free cash flow growth is very strong in 2024–2025, showing improved cash discipline. Offsetting this, cash conversion relative to revenue remains modest (operating cash flow coverage ratio ~0.37 in 2025), and results have been more volatile earlier in the period (including negative operating cash flow in 2020).

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	48.88B	50.37B	47.62B	46.48B	44.39B	23.29B
Gross Profit	34.18B	35.03B	33.27B	31.77B	31.00B	15.00B
EBITDA	5.21B	6.47B	3.77B	1.34B	676.00M	-2.23B
Net Income	-352.50M	-805.00M	-650.00M	-2.65B	-2.68B	-3.23B
Balance Sheet
Total Assets	69.09B	72.33B	73.26B	59.62B	57.27B	64.07B
Cash, Cash Equivalents and Short-Term Investments	18.54B	21.16B	20.63B	15.79B	9.95B	11.30B
Total Debt	22.66B	27.68B	25.92B	25.07B	22.22B	25.79B
Total Liabilities	37.39B	43.80B	41.14B	39.41B	37.92B	41.88B
Stockholders Equity	30.59B	30.96B	31.70B	20.21B	19.35B	22.19B
Cash Flow
Free Cash Flow	2.41B	4.98B	1.91B	-35.00M	428.00M	1.17B
Operating Cash Flow	2.66B	5.19B	2.65B	658.00M	924.00M	1.50B
Investing Cash Flow	-7.63B	-585.00M	-7.99B	-646.00M	1.23B	-10.21B
Financing Cash Flow	-992.00M	-2.43B	-485.00M	5.83B	-2.99B	12.99B

euglena Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 407.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2931, the sentiment is Negative. The current price of 407 is above the 20-day moving average (MA) of 401.15, above the 50-day MA of 403.42, and below the 200-day MA of 430.06, indicating a bearish trend. The MACD of -5.68 indicates Positive momentum. The RSI at 43.66 is Neutral, neither overbought nor oversold. The STOCH value of 37.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2931.

euglena Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4527	71 Outperform	¥568.79B	16.01	13.22%	1.53%	18.35%	31.87%
4452	70 Outperform	¥3.05T	25.64	11.70%	2.41%	4.62%	47.68%
4922	69 Neutral	¥357.25B	23.54	2.72%	2.61%	1.37%	-5.60%
4967	65 Neutral	¥431.11B	118.54	5.37%	1.95%	-3.33%	13.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4911	58 Neutral	¥1.29T	-31.81	―	2.11%	-1.20%	-2896.72%
2931	48 Neutral	¥52.50B	-63.89	―	―	3.68%	―

euglena Co., Ltd. Corporate Events

Euglena Delivers Record FY2025 Results and Announces 20th Anniversary Special Dividend

Euglena Co., Ltd., a Prime Market-listed healthcare player, has been reshaping its profit structure while deepening its focus on direct-to-consumer offerings and M&A-driven expansion. The group continues to position its healthcare operations as a primary growth engine within its broader portfolio.

For fiscal 2025, the company reported record net sales and sharply improved profitability, with operating profit rising more than tenfold year on year alongside strong gains in adjusted EBITDA and ordinary profit. Reflecting this performance and a stronger financial base, Euglena will pay its first-ever 20th anniversary special dividend of JPY 2 per share, underscoring management’s confidence in the success of its two-year profit reform program and the momentum in its healthcare business.

The most recent analyst rating on (JP:2931) stock is a Hold with a Yen389.00 price target. To see the full list of analyst forecasts on euglena Co., Ltd. stock, see the JP:2931 Stock Forecast page.