Pickles Holdings Co., Ltd. (2935) AI Stock Analysis

• Market Cap: ¥15.37B
• Dividend Yield: 2.16%
• Average Volume (3M): 32.72K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.45
• Revenue Growth: 1.28%
• EPS Growth: 18.81%
• Country: JP
• Employees: 439
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 12.17
• Shares Outstanding: 12,858,430
• 10 Day Avg. Volume: 31,670
• 30 Day Avg. Volume: 32,720
• PEG Ratio: -0.69
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -3.11
• 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): 112.97
• Revenue Forecast (FY): ¥44.27B

• Rating: 74 Outperform
• Price Target: ¥1,448.00 ▲(9.28% Upside)
• Action: Upgraded Date: 11/13/25
• Date: Action: Upgraded 11/13/25

The stock's overall score reflects strong technical indicators and attractive valuation, offset by challenges in financial performance. The company's stable equity position and positive market momentum contribute positively, while profitability and cash flow issues present risks.

Positive Factors

Strong Equity Position

A high equity ratio signals durable financial stability and a solid capital base. This strengthens Pickles' ability to absorb shocks, fund strategic investments, and support platform operations without immediate reliance on external financing, improving multi-quarter resilience.

Platform Business Model & Diversified Services

A multi-service marketplace creates recurring transaction fees and cross-sell opportunities, increasing customer stickiness. Network effects from buyer-seller matching and ancillary services (inspection, financing, parts, logistics) support sustainable revenue diversification.

Modest Revenue Growth with Stable Gross Margin

Positive revenue growth alongside a stable gross margin suggests the core auction and services mix retains pricing power and cost control. This underpins medium-term cash generation potential even if net margins face pressure.

Negative Factors

Falling Profitability Margins

Declining net and operating margins point to erosion in profitability from higher costs, pricing pressure, or mix shifts. Sustained margin deterioration would limit reinvestment, constrain returns to shareholders, and reduce buffer against demand slowdowns.

Volatile and Negative Free Cash Flow

Inability to reliably convert earnings into cash undermines funding for capex, working capital and debt service. Persistent FCF volatility increases reliance on external financing and raises operational risk during cyclical downturns.

Rising Leverage and Weaker ROE

Higher leverage while ROE falls implies the company is using more debt without improving returns. This raises interest and refinancing risk, reduces financial flexibility, and can amplify downside in tighter credit or revenue environments.

Pickles Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Pickles Holdings Co.,Ltd., through its subsidiaries, manufactures and sells pickles in Japan. It offers light pickles, asazuke, rice kimchi, prepared foods, side dishes, and seasoning and other products, as well as products that utilize lactic acid bacteria. It also engages in e-commerce business; restaurant and retail business; and agricultural business. The company was founded in 1977 and is headquartered in Tokorozawa, Japan.

How the Company Makes Money

Pickles Holdings generates revenue primarily through auction fees charged to sellers and buyers in its vehicle sales operations. The company earns a significant portion of its income from transaction commissions on the sale of vehicles, which vary based on the value of the vehicles being sold. Additionally, revenue is supplemented by fees for inspection and valuation services, as well as financing options offered to customers. Strategic partnerships with automotive manufacturers and dealerships further enhance its revenue streams, allowing for a broader inventory and customer base. The company also benefits from ancillary sales in automotive parts and accessories, which contribute to its overall profitability.

Pickles Holdings Co., Ltd. Financial Statement Overview

Summary

The company faces challenges in profitability and cash flow stability, with declining net profit margins and volatile free cash flow. Despite a strong equity position, the rising debt-to-equity ratio and decreased return on equity indicate financial pressures.

Income Statement

The company exhibited mixed revenue performance with a slight decline from 2024 to 2025 and a decline from 2022 to 2025. Gross profit margin remained stable, but net profit margin decreased, reflecting pressure on profitability. EBIT and EBITDA margins also weakened over time, indicating challenges in maintaining operational efficiency.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, suggesting financial stability. However, the debt-to-equity ratio increased over time, indicating a rising reliance on debt. Return on equity has decreased, reflecting less efficient use of equity capital despite high equity levels.

Cash Flow

Free cash flow showed significant volatility, with a substantial decline in 2025, impacting overall cash flow performance. The operating cash flow to net income ratio has deteriorated, suggesting challenges in converting income to cash flows. The free cash flow to net income ratio was negative in 2025, highlighting cash flow challenges.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	42.15B	41.52B	43.03B	41.05B	45.01B	46.02B
Gross Profit	8.56B	8.10B	8.64B	8.63B	12.20B	12.06B
EBITDA	2.96B	2.41B	2.80B	2.70B	4.00B	3.75B
Net Income	1.26B	958.00M	1.18B	1.14B	2.13B	1.83B
Balance Sheet
Total Assets	31.65B	30.24B	27.71B	26.31B	26.20B	25.95B
Cash, Cash Equivalents and Short-Term Investments	6.08B	4.97B	7.75B	5.94B	6.03B	4.44B
Total Debt	3.77B	4.85B	3.14B	2.65B	2.95B	3.93B
Total Liabilities	11.79B	11.36B	9.46B	8.90B	9.44B	11.22B
Stockholders Equity	19.84B	18.86B	18.24B	17.40B	16.76B	14.73B
Cash Flow
Free Cash Flow	0.00	-3.86B	1.77B	783.00M	2.80B	1.64B
Operating Cash Flow	0.00	831.00M	2.72B	1.67B	3.52B	3.05B
Investing Cash Flow	0.00	-4.69B	-950.00M	-882.00M	-712.00M	-1.31B
Financing Cash Flow	0.00	1.08B	45.00M	-876.00M	-1.21B	-607.00M

Pickles Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1325.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2935, the sentiment is Negative. The current price of 1325 is above the 20-day moving average (MA) of 1260.50, above the 50-day MA of 1275.48, and above the 200-day MA of 1094.87, indicating a neutral trend. The MACD of -2.04 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 15.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2935.

Pickles Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3392	78 Outperform	¥14.40B	9.32	―	1.43%	10.77%	131.68%
2935	74 Outperform	¥15.37B	11.95	―	2.16%	1.28%	18.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2904	59 Neutral	¥13.86B	34.48	―	1.61%	0.48%	-34.95%
2933	59 Neutral	¥24.88B	24.38	―	1.87%	3.06%	-53.49%
2937	59 Neutral	¥16.72B	31.54	―	2.11%	3.00%	73.02%
2910	46 Neutral	¥37.70B	311.33	―	1.65%	-1.17%	-84.81%

Pickles Holdings Co., Ltd. Corporate Events

Pickles Holdings Lifts Profit and Dividend Outlook on Stable Sales and Stronger Equity Base

For the nine months ended November 30, 2025, Pickles Holdings posted virtually flat net sales of ¥31.8 billion but achieved a sharp improvement in profitability, with operating profit up 39.0% to ¥1.82 billion and profit attributable to owners of parent rising 36.3% to ¥1.26 billion, driving basic earnings per share to ¥100.50. The balance sheet strengthened as total assets held steady at about ¥30.3 billion while net assets increased and the equity ratio rose to 64.3%, and the company maintained its full‑year forecast for modest 0.4% sales growth but a jump of more than 60% in operating profit, alongside plans to raise the annual dividend from ¥26.00 to ¥29.00 per share, signaling management confidence and a commitment to shareholder returns despite only marginal top-line growth.

The most recent analyst rating on (JP:2935) stock is a Buy with a Yen1289.00 price target. To see the full list of analyst forecasts on Pickles Holdings Co., Ltd. stock, see the JP:2935 Stock Forecast page.