Okamura Foods Co. Ltd. (2938) AI Stock Analysis

• Market Cap: ¥52.63B
• Dividend Yield: 0.59%
• Average Volume (3M): 38.29K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.47
• Revenue Growth: 13.62%
• EPS Growth: 24.54%
• Country: JP
• Employees: 852
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Agricultural Farm Products
• EPS (TTM): 28.96
• Shares Outstanding: 16,369,167
• 10 Day Avg. Volume: 70,970
• 30 Day Avg. Volume: 38,293
• PEG Ratio: 0.69
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.16
• 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

• Rating: 72 Outperform
• Price Target: ¥3,386.00 ▲(3.55%Upside)

The overall stock score is primarily driven by strong technical analysis, indicating robust market momentum, although caution is advised due to potential overbought conditions. Financial performance is solid but faces challenges in cash flow management and rising debt. Valuation concerns with a high P/E ratio and modest dividend yield also weigh on the score.

Okamura Foods Co. Ltd. Business Overview & Revenue Model

Company Description

Okamura Foods Co. Ltd. (2938) is a company engaged in the food industry, focusing on the production and distribution of a variety of seafood products. The company specializes in the processing and sale of canned, frozen, and processed seafood, catering to both domestic and international markets. With a commitment to quality and sustainability, Okamura Foods has established itself as a trusted provider of premium seafood products.

How the Company Makes Money

Okamura Foods Co. Ltd. generates revenue primarily through the sale of its seafood products, which include canned, frozen, and processed fish and shellfish. The company's revenue model is based on sourcing raw seafood from established fisheries, processing it into consumer-ready products, and distributing these products through various retail and wholesale channels. Significant partnerships with retailers and distributors play a crucial role in the company's distribution strategy, enabling it to reach a broad customer base both in Japan and in international markets. Additionally, the company's focus on high-quality and sustainably sourced seafood products enhances its market appeal and drives sales growth.

Okamura Foods Co. Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth and operational efficiency, with healthy profit margins. However, the net profit margin is under slight pressure, and cash flow management is a concern with negative free cash flow and low conversion of profits to cash. The balance sheet is stable but shows rising debt levels that need careful management.

Income Statement

Okamura Foods Co. Ltd. has demonstrated a strong revenue growth with a 12.88% increase from the previous year. The gross profit margin is healthy at 19.8%, although there has been a slight decline compared to last year. The EBIT margin stands at 7.8%, and EBITDA margin is 13.2%, indicating robust operational efficiency. However, the net profit margin is slightly reduced to 6.0% from the previous 8.3%, suggesting some pressure on net earnings.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 1.33, indicating moderate leverage. Return on equity is strong at 13.9%, reflecting efficient use of shareholder funds. The equity ratio is 36.1%, showing a stable capital structure. However, the increase in total debt could pose future financial risks if not managed properly.

Cash Flow

The cash flow analysis highlights challenges, with a negative free cash flow of -2.06 billion yen and a significant drop in free cash flow growth. Operating cash flow to net income ratio is only 0.14, suggesting challenges in converting earnings into cash. Despite this, substantial financing activities have bolstered cash reserves.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement		Total Revenue
34.38B	32.66B	28.94B	24.10B	20.21B
	Gross Profit
7.13B	6.46B	6.95B	5.92B	4.11B
	EBIT
2.98B	2.55B	3.19B	2.96B	1.50B
	EBITDA
4.42B	4.33B	4.46B	4.04B	2.21B
	Net Income Common Stockholders
2.19B	1.97B	2.39B	2.25B	992.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.67B	4.83B	2.06B	1.96B	1.94B
	Total Assets
44.80B	39.17B	30.11B	24.33B	17.39B
	Total Debt
21.36B	18.89B	15.00B	11.57B	9.02B
	Net Debt
14.68B	14.05B	12.94B	9.61B	7.08B
	Total Liabilities
29.47B	25.02B	20.14B	16.88B	12.12B
	Stockholders Equity
15.32B	14.15B	9.97B	7.45B	5.27B
Cash Flow		Free Cash Flow
0.00	-2.06B	-3.27B	-2.54B	2.12B
	Operating Cash Flow
0.00	277.00M	-1.14B	-863.00M	3.61B
	Investing Cash Flow
0.00	-2.34B	-2.13B	-1.63B	-1.20B
	Financing Cash Flow
0.00	4.73B	3.30B	2.46B	-2.69B

Okamura Foods Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3270.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2938, the sentiment is Positive. The current price of 3270 is above the 20-day moving average (MA) of 2789.70, above the 50-day MA of 2565.74, and above the 200-day MA of 2281.54, indicating a bullish trend. The MACD of 199.90 indicates Negative momentum. The RSI at 79.15 is Negative, neither overbought nor oversold. The STOCH value of 96.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2938.

Okamura Foods Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1381	81 Outperform	¥17.44B	11.86		3.17%	1.44%	4.93%
8041	79 Outperform	¥18.74B	4.03		2.84%	5.07%	24.86%
2938	72 Outperform	¥52.63B	23.89		0.59%	13.62%	24.54%
9955	70 Outperform	¥27.28B	19.27		0.90%	-0.54%	-13.51%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
2292	63 Neutral	¥81.72B	30.67		3.45%	4.60%	-70.62%
2874	61 Neutral	¥51.89B	13.13		2.72%	1.11%	―

Okamura Foods Co. Ltd. Corporate Events

Okamura Foods Announces Stock Split and Shareholder Program Expansion

Okamura Foods Co., Ltd. announced a stock split to improve share liquidity and expand its investor base, effective July 1, 2025. The company will also amend its Articles of Incorporation and expand its shareholder benefit program, reflecting strategic moves to enhance market positioning and shareholder engagement.

Okamura Foods Announces Shareholder Benefits for June 2025

Okamura Foods Co., Ltd. has announced the details of its shareholder benefits program for the period ending June 2025. The program aims to thank shareholders for their support and encourage long-term investment by offering food products cultivated or processed by the company as benefits. Shareholders holding 100 to 199 shares will receive products worth approximately 5,000 yen, while those holding 200 shares or more will receive products worth around 7,000 yen. The benefits will be distributed between mid-August and the end of September 2025.