Kobe Bussan Co., Ltd. (3038) AI Stock Analysis

• Market Cap: ¥948.19B
• Dividend Yield: 0.54%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 40.6
• Beta (1Y): -0.15
• Revenue Growth: 9.10%
• EPS Growth: -2.15%
• Country: JP
• Employees: 1,629
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Grocery Stores
• EPS (TTM): 16.62
• Shares Outstanding: 273,600,000
• 10 Day Avg. Volume: 1,049,270
• 30 Day Avg. Volume: 1,186,200
• PEG Ratio: 1.52
• Price to Book (P/B): 6.85
• 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: ¥4,400.28
• Price Target Upside: 2.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥4,954.00 ▲(15.42%Upside)

Kobe Bussan Co., Ltd. demonstrates strong financial health, which is the primary driver of the score. The technical analysis provides mixed signals, while the valuation suggests potential overvaluation concerns. The absence of earnings call and corporate events data reduces the impact of qualitative factors.

Kobe Bussan Co., Ltd. Business Overview & Revenue Model

Company Description

Kobe Bussan Co., Ltd. operates, manages, and franchises retail stores in Japan. It also operates buffet franchise restaurants and fast food restaurants. In addition, the company operates renewable energy power plants. Kobe Bussan Co., Ltd. was founded in 1985 and is headquartered in Kako, Japan.

How the Company Makes Money

Kobe Bussan Co., Ltd. generates revenue through its extensive chain of retail grocery stores, primarily under the Gyomu Super brand, which offers a wide selection of food items at competitive prices. The company's revenue model is largely driven by high-volume sales in its retail stores, supported by its efficient supply chain and distribution network. Additionally, Kobe Bussan engages in the production of private label products, which helps boost profit margins. The company also earns from its renewable energy ventures, although the primary revenue stream remains its food retail operations. Strategic partnerships with suppliers and a focus on cost management contribute significantly to its earnings.

Kobe Bussan Co., Ltd. Financial Statement Overview

Summary

Kobe Bussan Co., Ltd. exhibits strong financial performance with consistent revenue growth, healthy profit margins, and a solid balance sheet. The company demonstrates effective cash flow management, reflecting a robust financial position in the retail staples industry.

Income Statement

Kobe Bussan Co., Ltd. showcases strong income statement metrics with consistent revenue growth. The revenue grew by 10% from the prior year, indicating robust sales performance. The company maintains healthy profit margins with a gross profit margin of approximately 11.5%, a net profit margin of 4.2%, and an EBIT margin of 6.8%. These metrics suggest strong operational efficiency and profitability in the retail staples market.

Balance Sheet

The balance sheet reflects a solid financial standing with a debt-to-equity ratio of approximately 0.28, indicating prudent leverage use. The return on equity (ROE) stands at 16.1%, highlighting effective management of shareholder capital. The equity ratio is 56.9%, showcasing a stable capital structure with a healthy proportion of equity to total assets.

Cash Flow

Kobe Bussan demonstrates a strong cash flow position with a free cash flow growth rate of -2.5%, which is stable considering the company's capital expenditures. The operating cash flow to net income ratio is 1.44, indicating robust cash generation relative to reported earnings. The free cash flow to net income ratio is 0.95, suggesting effective conversion of earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	507.88B	461.55B	406.81B	362.06B	340.87B
Gross Profit	58.41B	52.72B	46.60B	43.12B	45.20B
EBITDA	37.92B	35.21B	36.01B	33.07B	26.18B
Net Income	21.44B	20.56B	20.83B	19.59B	15.05B
Balance Sheet
Total Assets	233.39B	211.89B	180.28B	156.74B	148.18B
Cash, Cash Equivalents and Short-Term Investments	107.27B	92.59B	69.04B	57.80B	69.81B
Total Debt	37.00B	38.32B	34.54B	34.69B	49.30B
Total Liabilities	100.62B	97.44B	83.06B	78.52B	88.91B
Stockholders Equity	132.77B	114.45B	97.22B	78.22B	59.27B
Cash Flow
Free Cash Flow	20.44B	20.97B	10.19B	2.83B	7.42B
Operating Cash Flow	30.77B	30.34B	21.58B	21.26B	19.54B
Investing Cash Flow	-10.18B	-6.82B	-12.48B	-17.41B	-17.31B
Financing Cash Flow	-5.59B	80.00M	-3.75B	-16.53B	-3.70B

Kobe Bussan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4292.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3038, the sentiment is Neutral. The current price of 4292 is below the 20-day moving average (MA) of 4453.35, below the 50-day MA of 4492.32, and above the 200-day MA of 3917.42, indicating a neutral trend. The MACD of -47.20 indicates Positive momentum. The RSI at 39.44 is Neutral, neither overbought nor oversold. The STOCH value of 13.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3038.

Kobe Bussan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8194	79 Outperform	¥203.66B	11.28		1.06%	4.90%	12.63%
9974	74 Outperform	¥146.48B	11.70		1.65%	9.83%	21.58%
2742	73 Outperform	¥102.84B	11.42		1.33%	7.94%	0.06%
8198	72 Outperform	¥102.15B	10.72		2.18%	3.09%	10.80%
Sector *	68 Neutral	¥195.85B	21.49	8.29%	2.29%	4.93%	0.78%
3038	66 Neutral	¥948.19B	40.64	17.87%	0.54%	9.10%	-2.15%
5FV	―	€2.27B	18.25	11.37%	1.45%	―	―

Kobe Bussan Co., Ltd. Corporate Events

Kobe Bussan to Build New Distribution Center to Boost Efficiency

Kobe Bussan Co., Ltd. announced plans to construct a new in-house distribution center in Funabashi-shi, Chiba, to optimize its distribution operations in the Kanto area. This strategic move is expected to reduce logistics costs by approximately 1.5 billion yen annually, thereby enhancing price competitiveness and customer satisfaction, ultimately driving further business expansion.

The most recent analyst rating on (JP:3038) stock is a Hold with a Yen4750.00 price target. To see the full list of analyst forecasts on Kobe Bussan Co., Ltd. stock, see the JP:3038 Stock Forecast page.

Kobe Bussan Reports Growth in May 2025 and Expands Store Network

Kobe Bussan Co., Ltd. reported its financial performance for May 2025, showing a year-on-year increase in net sales, gross profit, and ordinary profit. The company also expanded its Gyomu Super store network by opening new locations in both directly and indirectly managed areas, indicating a strategic focus on growth and market penetration.

The most recent analyst rating on (JP:3038) stock is a Hold with a Yen4750.00 price target. To see the full list of analyst forecasts on Kobe Bussan Co., Ltd. stock, see the JP:3038 Stock Forecast page.

Kobe Bussan Revamps Shareholder Benefits with Gyomuca Integration

Kobe Bussan Co., Ltd. has announced changes to its shareholder benefit program, shifting from JCB Gift Cards to Gyomuca Cards, which can be exchanged for VISA gift cards or private label products. This change aims to enhance shareholder satisfaction and expand the use of Gyomuca, facilitating product development and increased customer loyalty through data-driven insights and improved store experiences.

The most recent analyst rating on (JP:3038) stock is a Hold with a Yen4750.00 price target. To see the full list of analyst forecasts on Kobe Bussan Co., Ltd. stock, see the JP:3038 Stock Forecast page.

Kobe Bussan Reports Strong Financial Growth in First Half of 2025

Kobe Bussan Co., Ltd. reported a 9.7% increase in net sales for the six months ending April 30, 2025, reaching 272,306 million yen. The company also saw a rise in operating profit by 7.7% and ordinary profit by 16.0%, indicating strong financial performance. The equity ratio improved to 57.0%, and the company included two new subsidiaries, KB TRADING Co., Ltd. and Uehara Foods Industry Co., Ltd., in its consolidation scope. These results suggest a positive trajectory for Kobe Bussan, enhancing its market position and potentially benefiting stakeholders.

The most recent analyst rating on (JP:3038) stock is a Hold with a Yen4750.00 price target. To see the full list of analyst forecasts on Kobe Bussan Co., Ltd. stock, see the JP:3038 Stock Forecast page.

Kobe Bussan Reports Growth in March 2025 Performance and Store Expansion

Kobe Bussan Co., Ltd. reported its non-consolidated monthly performance for March 2025, highlighting an increase in net sales and profits compared to the previous year. The company also expanded its Gyomu Super store network by opening new locations, indicating a strategic focus on growth and market penetration.