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

• Market Cap: ¥55.39B
• Dividend Yield: 1.09%
• Average Volume (3M): 190.20K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.47
• Revenue Growth: 13.62%
• EPS Growth: 24.54%
• Country: JP
• Employees: 852
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Agricultural Farm Products
• EPS (TTM): 9.65
• Shares Outstanding: 49,194,023
• 10 Day Avg. Volume: 81,400
• 30 Day Avg. Volume: 190,196
• PEG Ratio: -0.27
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,224.00
• Price Target Upside: 275.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥1,213.00 ▲(7.73%Upside)

The overall stock score of 66 reflects strong financial performance driven by robust revenue growth and operational efficiency, despite challenges in cash flow management. Technical analysis shows a mix of short-term weakness and long-term strength, while the high valuation and low dividend yield constrain potential upside. The absence of earnings call and corporate events data does not affect the score.

Okamura Foods Co. Ltd. Business Overview & Revenue Model

Company Description

Okamura Foods Co. Ltd. (2938) is a Japanese company specializing in the production and sale of seafood products. The company operates within the food and beverage sector, focusing on delivering high-quality seafood to its customers. Its core products include a wide variety of processed seafood items, catering to both domestic and international markets.

How the Company Makes Money

Okamura Foods Co. Ltd. generates revenue primarily through the sale of its seafood products. The company's key revenue streams include domestic sales to supermarkets, restaurants, and other food service providers, as well as international exports to various countries. Significant factors contributing to its earnings include its strong supply chain management, quality control measures, and strategic partnerships with distributors and retailers. The company also benefits from ongoing demand for seafood products, driven by consumer preferences for healthy and sustainable food options.

Okamura Foods Co. Ltd. Financial Statement Overview

Summary

Okamura Foods Co. Ltd. demonstrates strong revenue growth and operational efficiency with healthy profit margins, although net earnings are under slight pressure. The balance sheet is stable with moderate leverage; however, rising debt levels need careful management. Cash flow management is concerning, with negative free cash flow and low profit-to-cash conversion. Overall, the company is in a solid position but must address cash flow challenges for long-term health.

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	35.15B	32.66B	28.94B	24.10B	20.21B
Gross Profit	7.27B	6.46B	6.95B	5.92B	4.11B
EBITDA	4.31B	4.33B	4.46B	4.04B	2.21B
Net Income	2.18B	1.97B	2.39B	2.25B	992.00M
Balance Sheet
Total Assets	43.58B	39.17B	30.11B	24.33B	17.39B
Cash, Cash Equivalents and Short-Term Investments	6.64B	4.83B	2.06B	1.96B	1.94B
Total Debt	20.02B	18.89B	15.00B	11.57B	9.02B
Total Liabilities	27.84B	25.02B	20.14B	16.88B	12.12B
Stockholders Equity	15.73B	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: 1126.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1126 is below the 20-day moving average (MA) of 1163.78, above the 50-day MA of 1061.87, and above the 200-day MA of 820.10, indicating a neutral trend. The MACD of 10.73 indicates Positive momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 48.17 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	¥20.71B	4.45		2.48%	5.07%	24.88%
1381	76 Outperform	¥16.66B	11.38		3.32%	1.44%	4.93%
9955	70 Outperform	¥28.96B	20.37		0.85%	-0.54%	-13.51%
2292	70 Neutral	¥80.90B	19.89		3.48%	3.99%	-32.61%
2938	66 Neutral	¥55.39B	25.39		1.09%	13.62%	24.54%
Sector *	65 Neutral	$27.19B	15.58	-4.44%	2.56%	1.05%	4.97%
2874	63 Neutral	¥61.48B	15.21		2.30%	1.11%	―

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.