STI Foods Holdings, Inc. (2932) AI Stock Analysis

• Market Cap: ¥22.86B
• Dividend Yield: 3.69%
• Average Volume (3M): 21.88K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.50
• Revenue Growth: 8.75%
• EPS Growth: 4.38%
• Country: JP
• Employees: 276
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 30.90
• Shares Outstanding: 17,778,900
• 10 Day Avg. Volume: 18,220
• 30 Day Avg. Volume: 21,883
• PEG Ratio: 0.19
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 15.28
• 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): 123.9
• Revenue Forecast (FY): ¥43.52B

• Rating: 71 Outperform
• Price Target: ¥1,403.00 ▲(11.26% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial performance (growth and improved profitability, offset by cash flow variability and higher leverage) and supportive valuation (low P/E and decent yield). Technical indicators are mixed and slightly weak, limiting the overall score.

Positive Factors

Steady revenue growth and improving net margin

Consistent top-line expansion and a meaningful net-margin step-up indicate durable demand and some pricing or cost leverage in STI Foods' packaged-foods franchise. Over the next several quarters this supports reinvestment capacity, retained earnings growth, and a stronger earnings base that underpins operational resilience even if volumes face cyclical pressure.

Generally healthy balance sheet with equity expansion

A moderate leverage profile and rising equity provide structural financial flexibility for capex, M&A or working-capital needs. For a packaged-foods operator, this capital base supports supply-chain investments and inventory capacity, reducing financing vulnerability and enabling multi-quarter strategic initiatives without excessive reliance on external funding.

Improved free cash flow conversion to earnings

A return to positive free cash flow and a high FCF-to-net-income ratio show improving cash conversion and internal funding ability. This strengthens the firm's capacity to sustain dividends, fund maintenance capex and strategic projects, and lowers dependency on debt markets—making near- to medium-term capital plans more credible.

Negative Factors

Rising leverage versus 2023 levels

The material increase in debt-to-equity over two years reduces financial flexibility and raises fixed-interest obligations. If cost inflation, input-price shocks, or demand softness recur, higher leverage amplifies downside risk to cash flow and limits room for discretionary spending or opportunistic investments over the coming quarters.

Volatile operating cash flow and cash conversion

Significant swings in operating cash flow reflect working-capital variability or timing issues, undermining predictability of internal funding. This volatility can force short-term borrowing at inopportune times, complicate dividend planning and capex scheduling, and raise the probability of external financing needs during adverse quarters.

Operating-margin volatility and cost/mix pressure

Erosion in margins below the gross line suggests the company faces structural cost or product-mix headwinds that could persist. If operating leverage is weakening, sustaining profit expansion will require either consistent pricing power or durable cost control; absent that, margin volatility threatens cash flow and returns over multiple quarters.

STI Foods Holdings, Inc. Business Overview & Revenue Model

Company Description

STI Foods Holdings,Inc. manufactures and sells seafood products. It offers rice ball with salmon roe, grilled mackerel with salt, octopus, broccoli, potato basil sauce, roasted mesaba, olive oil mackerel, saury and mushroom in olive oil, beef tendon stew, Norwegian mackerel simmered in miso, soft roe, and mussels flavored with garlic butter. The company was founded in 1988 and is headquartered in Minato, Japan.

How the Company Makes Money

STI Foods Holdings, Inc. generates revenue primarily through the sale of its food products across multiple distribution channels, including grocery stores, supermarkets, and restaurants. The company's revenue model is driven by direct sales to retailers as well as partnerships with food service operators, allowing it to reach a broad customer base. Key revenue streams include the sale of packaged foods, snacks, and prepared meals, along with ongoing contracts with large-scale distributors. Additionally, the company invests in marketing and promotional activities to enhance brand visibility and drive sales, while strategic partnerships with ingredient suppliers and logistics firms help optimize operational efficiency and reduce costs, further contributing to its profitability.

STI Foods Holdings, Inc. Financial Statement Overview

Summary

Solid income statement trends (steady revenue growth and improved net margin in 2025) are tempered by rising leverage versus 2023 and uneven cash conversion, including the prior-year negative free cash flow and operating cash flow volatility.

Income Statement

Revenue has expanded steadily over 2020–2025, with the latest year still showing positive growth. Profitability is solid for the category: gross margin has been stable (~27–28%) and net margin improved to ~6.4% in 2025 from ~4.7% in 2024, driving a sharp step-up in net income. The main weakness is some margin volatility below the gross line—EBITDA and EBIT margins peaked in 2023–2024 and softened in 2025, suggesting higher operating costs or mix pressure despite higher earnings.

Balance Sheet

The balance sheet looks generally healthy with moderate leverage: debt-to-equity sits around ~0.41–0.42 in 2024–2025, which is manageable for a packaged foods business. Equity has grown meaningfully over time, supporting a larger asset base. The key watch-out is that debt increased notably from 2023 to 2025, reversing the prior lower-leverage profile (2023 debt-to-equity ~0.18), which reduces flexibility if margins weaken.

Cash Flow

Cash generation is mixed. Operating cash flow rebounded in 2025 and free cash flow turned positive again, with free cash flow at roughly 73% of net income—an encouraging improvement versus 2024, when free cash flow was negative despite positive earnings. However, cash flow volatility is a concern (large swing from strong 2023 to negative 2024), and operating cash flow is not consistently strong relative to reported profits, indicating working-capital or cash conversion variability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.28B	38.60B	35.58B	31.78B	27.57B	26.26B
Gross Profit	10.21B	10.45B	9.95B	8.83B	7.39B	7.26B
EBITDA	4.32B	3.61B	3.73B	3.24B	2.42B	2.56B
Net Income	2.18B	2.49B	1.69B	1.56B	1.01B	1.11B
Balance Sheet
Total Assets	21.05B	21.85B	19.28B	15.10B	13.81B	12.78B
Cash, Cash Equivalents and Short-Term Investments	2.83B	3.51B	4.23B	4.05B	2.69B	3.29B
Total Debt	3.45B	4.21B	3.47B	1.32B	1.77B	1.93B
Total Liabilities	11.64B	11.80B	10.90B	7.66B	7.60B	7.34B
Stockholders Equity	9.40B	10.05B	8.39B	7.45B	6.20B	5.44B
Cash Flow
Free Cash Flow	0.00	1.47B	-256.82M	2.68B	249.02M	968.71M
Operating Cash Flow	0.00	2.02B	3.23B	3.07B	859.38M	1.49B
Investing Cash Flow	0.00	-1.59B	-3.49B	-459.22M	-660.38M	-518.89M
Financing Cash Flow	0.00	-1.14B	417.04M	-1.26B	-822.55M	-287.31M

STI Foods Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1261.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2932, the sentiment is Positive. The current price of 1261 is below the 20-day moving average (MA) of 1284.50, below the 50-day MA of 1279.63, and below the 200-day MA of 1279.43, indicating a bullish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2932.

STI Foods Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2935	74 Outperform	¥15.37B	11.95	―	2.16%	1.28%	18.81%
2932	71 Outperform	¥22.86B	9.19	―	3.69%	8.75%	4.38%
2819	68 Neutral	¥25.61B	15.65	―	1.87%	3.08%	-16.77%
2804	66 Neutral	¥24.61B	10.14	―	2.05%	0.99%	830.67%
2831	64 Neutral	¥32.75B	13.01	―	1.96%	0.16%	10.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2933	59 Neutral	¥24.88B	24.38	―	1.87%	3.06%	-53.49%