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

• Market Cap: ¥59.67B
• Dividend Yield: 0.52%
• Average Volume (3M): 228.15K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.45
• Revenue Growth: 13.62%
• EPS Growth: 24.54%
• Country: JP
• Employees: 852
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Agricultural Farm Products
• EPS (TTM): 9.65
• Shares Outstanding: 49,154,305
• 10 Day Avg. Volume: 340,750
• 30 Day Avg. Volume: 228,153
• 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: ¥4,224.00 ▲(247.94%Upside)

Okamura Foods Co. Ltd. scores well due to strong financial performance and bullish technical indicators, indicating robust growth potential. However, cash flow challenges and potential overvaluation present risks. Investors should be cautious of the high P/E ratio and overbought signals in technical analysis.

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
EBITDA	4.42B	4.33B	4.46B	4.04B	2.21B
Net Income	2.19B	1.97B	2.39B	2.25B	992.00M
Balance Sheet
Total Assets	44.80B	39.17B	30.11B	24.33B	17.39B
Cash, Cash Equivalents and Short-Term Investments	6.67B	4.83B	2.06B	1.96B	1.94B
Total Debt	21.36B	18.89B	15.00B	11.57B	9.02B
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: 1214.00
• 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:2938, the sentiment is Positive. The current price of 1214 is above the 20-day moving average (MA) of 1139.17, above the 50-day MA of 962.77, and above the 200-day MA of 792.88, indicating a bullish trend. The MACD of 93.61 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 64.45 is Neutral, 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
8041	81 Outperform	¥19.27B	4.14		2.76%	5.07%	24.88%
1381	81 Outperform	¥16.37B	11.14		3.38%	1.44%	4.93%
2938	72 Outperform	¥59.67B	27.06		0.52%	13.62%	24.54%
9955	70 Outperform	¥28.04B	19.80		0.87%	-0.54%	-13.51%
Sector *	65 Neutral	$27.28B	15.30	-4.01%	3.16%	1.00%	1.98%
2874	65 Neutral	¥50.48B	12.77		2.80%	1.11%	―
2292	64 Neutral	¥83.08B	31.18		3.44%	4.60%	-70.62%

Okamura Foods Co. Ltd. Corporate Events

Okamura Foods Expands Aquaculture Operations with Latvian Acquisition

Okamura Foods Co., Ltd. announced that its subsidiary, Musholm A/S, will acquire a 51% stake in Riga Bay Aquaculture, AS, a Latvian company focused on trout aquaculture. This strategic acquisition aims to expand Okamura’s aquaculture operations into Latvia, addressing the challenge of limited aquaculture licenses in Denmark and enhancing the company’s raw material procurement capabilities. The move is expected to significantly contribute to profit growth in both the aquaculture and domestic processing businesses, stabilizing profit volatility and supporting the company’s long-term growth strategy.

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.