BASE FOOD Inc. (2936) AI Stock Analysis

• Market Cap: ¥19.06B
• Dividend Yield: N/A
• Average Volume (3M): 151.08K
• Price to Earnings (P/E): 44.2
• Beta (1Y): 0.52
• Revenue Growth: 7.07%
• EPS Growth: N/A
• Country: JP
• Employees: 128
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.72
• Shares Outstanding: 54,752,100
• 10 Day Avg. Volume: 275,640
• 30 Day Avg. Volume: 151,083
• PEG Ratio: -2.61
• Price to Book (P/B): 30.78
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 618.82
• 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: 70 Outperform
• Price Target: ¥393.00 ▲(26.77% Upside)
• Action: Upgraded Date: 01/21/26
• Date: Action: Upgraded 01/21/26

The score is driven primarily by improving financial fundamentals (growth, rising margins, and a shift to positive earnings and operating cash flow). Technicals are supportive but show overbought momentum risk, while valuation is a key constraint due to the high P/E and lack of dividend support.

Positive Factors

Revenue Growth

Consistent top-line expansion combined with rising gross margins and a shift to positive net income indicates durable product-market fit and improving unit economics. This trend supports reinvestment in distribution, R&D and marketing, enabling sustainable scale and competitive positioning over months.

Improving Cash Generation

Conversion to positive operating cash flow is a structural improvement in financial resilience, reducing dependence on external funding. Stronger cash conversion supports capex, working capital needs and strategic partnerships, improving the firm's ability to execute growth plans over the medium term.

Balance Sheet Strength

Rising equity and low leverage provide financial flexibility to absorb shocks and fund expansion without stressing interest obligations. A healthy balance sheet supports long-term investments in manufacturing, distribution and product development while preserving optionality for strategic initiatives.

Negative Factors

Free Cash Flow Volatility

Although operating cash flow has turned positive, volatile free cash flow history signals uneven cash generation from operations and investments. This volatility can constrain consistent reinvestment, require intermittent external financing, and increase execution risk during scaling or margin pressure.

Earlier Operational Inefficiency

Prior negative operating margins reflect historical cost structure weaknesses and inefficiencies. While recent improvements are positive, legacy margin shortfalls suggest the company must sustain cost discipline and productivity gains to lock in margin improvements as volumes scale and competition intensifies.

Concentrated Product Mix

A focused portfolio centered on staple items (instant noodles, rice) raises exposure to category-specific demand swings and intense competition from incumbents and private labels. Limited product diversification may constrain revenue resilience and necessitate ongoing innovation to defend market share.

BASE FOOD Inc. Business Overview & Revenue Model

Company Description

BASE FOOD Inc. produces and sells nutritional staple food. It offers bread, pasta, as well as cookies. The company was incorporated in 2016 and is based in Tokyo, Japan.

How the Company Makes Money

BASE FOOD Inc. generates revenue primarily through the sale of its core product lines, which include nutritionally enhanced instant noodles and rice-based meals. The company markets its products through various channels, including e-commerce platforms, retail partnerships, and direct-to-consumer sales. Key revenue streams include online sales from its website and third-party retailers, as well as bulk sales to supermarkets and convenience stores. The company has also established partnerships with health and wellness brands to expand its market reach and enhance product visibility. Additionally, BASE FOOD invests in marketing and promotional activities to drive brand awareness and customer engagement, further contributing to its revenue growth.

BASE FOOD Inc. Financial Statement Overview

Summary

Strong revenue growth with improving gross margin and a turnaround to positive net income. Balance sheet looks stable with low leverage and rising equity. Cash flow has improved into positive operating cash flow, but historical free cash flow volatility and earlier weak operating efficiency temper the score.

Income Statement

BASE FOOD Inc. has demonstrated strong revenue growth over the past few years, with a significant increase from 2021 to 2025. The gross profit margin has also improved, indicating effective cost management. The company has moved from negative to positive net income, showcasing a turnaround in profitability. However, past negative EBIT and EBITDA margins suggest challenges in operational efficiency, though recent figures show improvement.

Balance Sheet

The balance sheet reflects a steady increase in stockholders' equity over the years, highlighting growing financial stability. With a low debt-to-equity ratio and a healthy equity ratio, BASE FOOD Inc. appears to be in a strong position to manage its liabilities. However, the company must continue to focus on maintaining this balance as it scales.

Cash Flow

The cash flow statement shows a significant improvement in operating cash flow, moving from negative to positive territory. The free cash flow has also shown growth, albeit from a negative starting point. The positive trajectory in cash flow to net income ratios indicates enhanced cash generation relative to earnings, though historical volatility in free cash flow suggests a need for ongoing cash management.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	15.52B	15.24B	14.87B	9.86B	5.55B	1.52B
Gross Profit	8.69B	8.38B	7.40B	5.27B	3.27B	876.20M
EBITDA	567.09M	207.62M	-853.89M	-979.40M	-457.24M	-161.32M
Net Income	449.51M	108.95M	-856.02M	-1.01B	-463.07M	-163.58M
Balance Sheet
Total Assets	4.01B	3.85B	3.28B	3.61B	1.59B	500.49M
Cash, Cash Equivalents and Short-Term Investments	2.09B	1.98B	1.43B	2.30B	837.00M	289.77M
Total Debt	767.68M	809.69M	508.25M	530.00M	60.00M	61.09M
Total Liabilities	3.06B	2.81B	2.43B	1.97B	945.73M	367.21M
Stockholders Equity	954.73M	1.04B	842.46M	1.64B	643.03M	133.28M
Cash Flow
Free Cash Flow	0.00	51.56M	-737.74M	-801.18M	-384.63M	-104.11M
Operating Cash Flow	0.00	130.43M	-665.90M	-732.92M	-373.07M	-102.65M
Investing Cash Flow	0.00	34.93M	-229.44M	-265.40M	-46.12M	-11.56M
Financing Cash Flow	0.00	386.88M	29.66M	2.46B	966.42M	379.03M

BASE FOOD Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 310.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2936, the sentiment is Negative. The current price of 310 is below the 20-day moving average (MA) of 365.35, below the 50-day MA of 356.14, and below the 200-day MA of 411.45, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2936.

BASE FOOD Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2875	76 Outperform	¥1.26T	18.99	13.26%	1.82%	3.64%	5.31%
2212	73 Outperform	¥716.53B	16.97	9.18%	1.13%	3.53%	4.88%
2918	73 Outperform	¥59.47B	12.40	―	3.20%	4.98%	-10.23%
2936	70 Outperform	¥19.06B	44.24	―	―	7.07%	―
2002	70 Outperform	¥616.19B	23.34	―	3.15%	-0.88%	-25.64%
2897	66 Neutral	¥963.27B	18.92	9.77%	2.41%	1.46%	-2.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

BASE FOOD Inc. Corporate Events

BASE FOOD Returns to Profit and Raises Operating Outlook Despite Flat Sales

BASE FOOD reported non-consolidated net sales of ¥11.44 billion for the nine months to November 30, 2025, down 1.2% year on year, but swung from a loss to a modest profit, with operating profit of ¥42 million and net profit of ¥43 million, improving from a net loss in the prior-year period. The company’s equity ratio strengthened to 29.4% as net assets rose to ¥1.14 billion, it maintained a zero-dividend policy for the current fiscal year, and revised its full-year forecast to project slightly higher net sales of ¥15.30 billion and a sharp recovery in operating profit to ¥193 million, signaling ongoing efforts to restore profitability and solidify its financial base.

The most recent analyst rating on (JP:2936) stock is a Hold with a Yen363.00 price target. To see the full list of analyst forecasts on BASE FOOD Inc. stock, see the JP:2936 Stock Forecast page.