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

• Market Cap: €856.75B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 26.2
• Beta (1Y): -0.20
• Revenue Growth: 8.42%
• EPS Growth: 65.03%
• Country: JP
• Employees: 1,629
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 53.89
• Shares Outstanding: 273,600,000
• 10 Day Avg. Volume: 2,817,840
• 30 Day Avg. Volume: 1,748,816
• PEG Ratio: 10.33
• Price to Book (P/B): 6.19
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 40.19
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥3,890.00 ▲(4.99% Upside)

Kobe Bussan Co., Ltd. has a strong financial foundation with consistent growth and solid cash flow. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. These factors contribute to a moderate overall stock score.

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 generates revenue through its wholesale distribution model, where it purchases food products in bulk from manufacturers and suppliers and then sells them to retailers and food service businesses at a markup. Key revenue streams include the sale of processed foods, fresh produce, and grocery items, which are sourced both domestically and internationally. The company benefits from economies of scale, allowing it to negotiate favorable pricing with suppliers and maintain competitive pricing for its customers. Additionally, strategic partnerships with food manufacturers and brands enhance its product offerings and market presence. Factors contributing to its earnings include strong demand for food products, an expanding customer base, and efficient logistics that reduce operational costs.

Kobe Bussan Co., Ltd. Financial Statement Overview

Summary

Kobe Bussan Co., Ltd. demonstrates strong financial performance with consistent revenue growth, healthy profit margins, prudent leverage, and robust cash flow generation. The company's solid balance sheet and effective operational management position it well 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	542.15B	507.88B	461.55B	406.81B	362.06B	340.87B
Gross Profit	63.85B	58.41B	52.72B	46.60B	43.12B	45.20B
EBITDA	48.71B	37.92B	35.21B	36.01B	33.07B	26.18B
Net Income	32.80B	21.44B	20.56B	20.83B	19.59B	15.05B
Balance Sheet
Total Assets	247.64B	233.39B	211.89B	180.28B	156.74B	148.18B
Cash, Cash Equivalents and Short-Term Investments	120.24B	107.27B	92.59B	69.04B	57.80B	69.81B
Total Debt	30.91B	37.00B	38.32B	34.54B	34.69B	49.30B
Total Liabilities	92.61B	100.62B	97.44B	83.06B	78.52B	88.91B
Stockholders Equity	155.03B	132.77B	114.45B	97.22B	78.22B	59.27B
Cash Flow
Free Cash Flow	0.00	20.44B	20.97B	10.19B	2.83B	7.42B
Operating Cash Flow	0.00	30.77B	30.34B	21.58B	21.26B	19.54B
Investing Cash Flow	0.00	-10.18B	-6.82B	-12.48B	-17.41B	-17.31B
Financing Cash Flow	0.00	-5.59B	80.00M	-3.75B	-16.53B	-3.70B

Kobe Bussan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3705.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3038, the sentiment is Negative. The current price of 3705 is below the 20-day moving average (MA) of 3831.30, below the 50-day MA of 4048.54, and below the 200-day MA of 3988.07, indicating a bearish trend. The MACD of -89.33 indicates Negative momentum. The RSI at 37.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9974	76 Outperform	¥154.41B	12.48	―	1.68%	10.13%	23.77%
8279	76 Outperform	―	―	―	―	16.50%	3.74%
8198	73 Outperform	¥115.20B	10.55	―	1.90%	2.30%	26.52%
2742	72 Outperform	¥99.68B	11.05	―	1.46%	7.75%	-1.68%
8194	72 Outperform	¥211.62B	11.69	―	2.51%	4.48%	13.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3038	60 Neutral	€856.75B	26.17	23.97%	0.62%	8.42%	65.03%

Kobe Bussan Co., Ltd. Corporate Events

Kobe Bussan Reports Significant Derivative Gains Amidst Market Uncertainty

Kobe Bussan Co., Ltd. announced a significant gain on the valuation of derivatives amounting to ¥6,211 million for the nine months ending July 31, 2025, primarily due to the termination of certain hedging derivatives. Despite this gain, the company has not altered its financial forecast for the fiscal year ending October 31, 2025, due to ongoing uncertainties in the foreign exchange market.

The most recent analyst rating on (JP:3038) stock is a Hold with a Yen4525.00 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 Co., Ltd. Reports Strong Financial Growth and Expansion

Kobe Bussan Co., Ltd. reported a significant increase in its financial performance for the nine months ending July 31, 2025, with net sales rising by 9.1% and profit attributable to owners of the parent increasing by 76.5% compared to the previous year. The company also expanded its consolidation scope by including two new subsidiaries, KB TRADING Co., Ltd. and Uehara Foods Industry Co., Ltd., which may enhance its market positioning and operational capabilities.

The most recent analyst rating on (JP:3038) stock is a Hold with a Yen4525.00 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 July Performance and Store Expansion

Kobe Bussan Co., Ltd. reported its monthly performance for July 2025, highlighting trends in net sales, gross profit, and ordinary profit. The company experienced a year-on-year increase in net sales and operating profit, with ordinary profit showing significant growth. Additionally, the company continued its expansion strategy by opening new Gyomu Super stores, contributing to its robust market presence and potential for future growth.

The most recent analyst rating on (JP:3038) stock is a Hold with a Yen4556.00 price target. To see the full list of analyst forecasts on Kobe Bussan Co., Ltd. stock, see the JP:3038 Stock Forecast page.