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

• Market Cap: ¥56.23B
• Dividend Yield: 0.34%
• Average Volume (3M): 77.80K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.57
• Revenue Growth: 4.70%
• EPS Growth: -2.58%
• Country: JP
• Employees: 852
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 17.48
• Shares Outstanding: 50,024,960
• 10 Day Avg. Volume: 106,360
• 30 Day Avg. Volume: 77,803
• PEG Ratio: -0.80
• Price to Book (P/B): 6.73
• Price to Sales (P/S): 3.06
• P/FCF Ratio: 68.98
• 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: 63 Neutral
• Price Target: ¥1,130.00 ▲(8.24% Upside)

The overall stock score is primarily influenced by strong financial performance, despite cash flow volatility. Technical analysis indicates neutral momentum, and valuation metrics suggest the stock is relatively expensive with limited dividend yield.

Positive Factors

Revenue Growth

A 56.6% revenue increase signals durable demand and effective expansion across products, channels and exports. Sustained top-line growth creates scale economics, funds R&D and capacity investments, and strengthens negotiating leverage with retailers and food-service partners over months.

Profit Margins

Healthy gross and net margins reflect effective cost management and pricing power in processed foods. Sustained margin levels support internal funding for innovation and quality controls, improving competitive differentiation and long-term cash generation resilience across business cycles.

Improved Capital Structure

An improving, moderate debt-to-equity ratio and stable equity ratio indicate a stronger capital structure and reduced financial risk. Lower leverage decreases refinancing pressure, preserves flexibility for capex or strategic initiatives, and enhances resilience through industry cycles.

Negative Factors

Cash Flow Volatility

Positive free cash flow is encouraging, but historical volatility undermines predictability for reinvestment, dividends and working-capital needs. Inconsistent cash generation increases reliance on external funding for capex or inventory and can constrain strategic execution over the medium term.

Negative EPS Growth

Slight negative EPS growth (-2.58%) despite strong revenue suggests earnings are not scaling proportionately. Persistent EPS weakness can erode retained earnings and shareholder returns, and may reflect margin pressure, cost increases or recurring non-operating items needing structural remediation.

Declining ROE and Leverage Watch

A declining ROE, even if still positive, signals reduced efficiency in converting equity into profits. Coupled with management guidance to monitor leverage, this suggests limited headroom for aggressive capital allocation and the need for operational improvements to restore shareholder return levels.

Okamura Foods Co. Ltd. Business Overview & Revenue Model

Company Description

Okamura Foods Co., Ltd. farms, produces, and sells salmon trout in Japan and internationally. The company also processes and sells as salmon roe, sujiko, herring roe, raw salmon sushi toppings, baked grilled fish, and boiled fish. In addition, it wholesales marine products. The company was founded in 1971 and is headquartered in Aomori, Japan.

How the Company Makes Money

Okamura Foods generates revenue through multiple channels, primarily by selling its processed food products to both retail and wholesale markets. Key revenue streams include direct sales to supermarkets, convenience stores, and food service providers, as well as exporting products to international markets. The company also benefits from strategic partnerships with major retail chains, which help enhance its distribution reach. Additionally, Okamura Foods invests in research and development to create new products that align with consumer trends, further driving sales and expanding their market presence.

Okamura Foods Co. Ltd. Financial Statement Overview

Summary

Okamura Foods Co. Ltd. shows strong revenue growth and profitability, with a stable balance sheet. However, cash flow volatility and the need for improved cash management slightly temper the overall financial performance.

Income Statement

Okamura Foods Co. Ltd. has demonstrated strong revenue growth, with a significant increase of 56.6% in the latest year. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. However, the EBIT and EBITDA margins have shown slight fluctuations over the years, suggesting some variability in operational efficiency.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, which has improved over the past year. Return on equity has decreased but remains positive, indicating that the company is generating returns on shareholders' investments. The equity ratio suggests a stable capital structure, though the company should monitor its leverage to avoid potential risks.

Cash Flow

Cash flow analysis reveals a positive shift in free cash flow growth, moving from negative to positive territory. The operating cash flow to net income ratio has improved, indicating better cash generation relative to net income. However, historical volatility in free cash flow suggests potential challenges in maintaining consistent cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.34B	35.34B	32.66B	28.94B	24.10B	20.21B
Gross Profit	7.39B	7.39B	6.46B	6.95B	5.92B	4.11B
EBITDA	4.42B	4.47B	4.33B	4.46B	4.04B	2.21B
Net Income	2.02B	2.02B	1.97B	2.39B	2.25B	992.00M
Balance Sheet
Total Assets	41.27B	41.27B	39.17B	30.11B	24.33B	17.39B
Cash, Cash Equivalents and Short-Term Investments	4.42B	4.42B	4.83B	2.06B	1.96B	1.94B
Total Debt	17.29B	17.29B	18.89B	15.00B	11.57B	9.02B
Total Liabilities	25.23B	25.23B	25.02B	20.14B	16.88B	12.12B
Stockholders Equity	16.04B	16.04B	14.15B	9.97B	7.45B	5.27B
Cash Flow
Free Cash Flow	0.00	1.57B	-2.06B	-3.27B	-2.54B	2.12B
Operating Cash Flow	0.00	3.54B	277.00M	-1.14B	-863.00M	3.61B
Investing Cash Flow	0.00	-1.99B	-2.34B	-2.13B	-1.63B	-1.20B
Financing Cash Flow	0.00	-1.93B	4.73B	3.30B	2.46B	-2.69B

Okamura Foods Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1044.00
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 1044 is below the 20-day moving average (MA) of 1101.50, below the 50-day MA of 1084.66, and below the 200-day MA of 1104.09, indicating a bullish trend. The MACD of 16.50 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 31.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	72 Outperform	¥23.84B	10.66	―	2.81%	5.47%	44.78%
8041	72 Outperform	¥22.04B	4.38	―	2.46%	5.27%	9.51%
2292	70 Neutral	¥95.95B	11.97	―	3.59%	4.55%	79.33%
9955	65 Neutral	¥38.12B	11.38	―	0.72%	-2.02%	103.08%
2874	64 Neutral	¥74.48B	37.74	―	1.86%	4.41%	-41.71%
2938	63 Neutral	¥56.23B	28.30	―	0.34%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Okamura Foods Co. Ltd. Corporate Events

Okamura Foods Reports Mixed Quarterly Results with Positive Future Outlook

Okamura Foods Co., Ltd. reported its consolidated financial results for the three months ending September 30, 2025, showing a 3.2% increase in net sales compared to the previous year. However, the company experienced a decline in operating profit and profit attributable to owners of the parent by 5.4% and 6.7%, respectively. Despite these challenges, the company forecasts a significant increase in net sales and profits for the fiscal year ending June 30, 2026, indicating a positive outlook for future growth.

The most recent analyst rating on (JP:2938) stock is a Hold with a Yen1296.00 price target. To see the full list of analyst forecasts on Okamura Foods Co. Ltd. stock, see the JP:2938 Stock Forecast page.

Okamura Foods Expands with New Hong Kong Subsidiary

Okamura Foods Co., Ltd. has established a wholly-owned subsidiary in Hong Kong, named OKAMURA TRADING (HONG KONG) COMPANY LIMITED, as part of its strategic expansion. The new subsidiary, which was officially established on November 10, 2025, is expected to have an immaterial impact on the company’s consolidated results for the fiscal year ending June 2026.

The most recent analyst rating on (JP:2938) stock is a Hold with a Yen1296.00 price target. To see the full list of analyst forecasts on Okamura Foods Co. Ltd. stock, see the JP:2938 Stock Forecast page.

Okamura Foods Completes New Share Issuance for Restricted Stock Compensation

Okamura Foods Co., Ltd. has completed the payment procedures for issuing new shares as restricted stock compensation, as resolved in their September board meeting. This issuance involves 27,356 shares at a price of JPY1,254 per share, amounting to a total of JPY34,304,424, and is allocated to select directors and employees, potentially impacting the company’s equity structure and stakeholder interests.

The most recent analyst rating on (JP:2938) stock is a Hold with a Yen1296.00 price target. To see the full list of analyst forecasts on Okamura Foods Co. Ltd. stock, see the JP:2938 Stock Forecast page.

Okamura Foods Finalizes Equity Compensation Stock Options

Okamura Foods Co., Ltd. has finalized the details of equity compensation stock options for directors of its subsidiaries. The allocation involves 5,583 stock options, each valued at 1,211 yen, calculated using the Black-Scholes model, and will be offset against compensation claims owed to the company.

The most recent analyst rating on (JP:2938) stock is a Hold with a Yen1296.00 price target. To see the full list of analyst forecasts on Okamura Foods Co. Ltd. stock, see the JP:2938 Stock Forecast page.