Lacto Japan Co., Ltd. (3139) AI Stock Analysis

• Market Cap: ¥36.99B
• Dividend Yield: 2.7%
• Average Volume (3M): 38.26K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.55
• Revenue Growth: 11.22%
• EPS Growth: 49.40%
• Country: JP
• Employees: 398
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Packaged Foods
• EPS (TTM): 120.76
• Shares Outstanding: 10,021,600
• 10 Day Avg. Volume: 24,410
• 30 Day Avg. Volume: 38,263
• PEG Ratio: 0.55
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.98
• 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: ¥4,500.00
• Price Target Upside: 21.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥4,120.00 ▲(11.20%Upside)

Lacto Japan Co., Ltd.'s stock receives a strong score driven by impressive technical analysis and favorable valuation. The technical indicators show bullish momentum, though caution is advised as it approaches overbought levels. The attractive P/E ratio and dividend yield further support the valuation. While financial performance is solid, cash flow management requires improvement. Overall, the company is positioned well in the packaged foods industry.

Lacto Japan Co., Ltd. Business Overview & Revenue Model

Company Description

Lacto Japan Co., Ltd. is a Japanese company primarily engaged in the import and sale of dairy products and feedstuffs. The company operates in sectors including food products and agribusiness, where it supplies a range of dairy ingredients, such as cheese and butter, as well as livestock feed. It serves various clients, ranging from food manufacturers to retailers, contributing to the food supply chain in Japan.

How the Company Makes Money

Lacto Japan Co., Ltd. generates revenue through the import and distribution of dairy products and feedstuffs. Its primary revenue streams include the sale of imported dairy ingredients to food manufacturers and retailers, leveraging its expertise in sourcing quality products from international suppliers. The company also earns income by selling livestock feed to agricultural businesses. Key factors contributing to its earnings include strategic partnerships with global dairy producers and a robust logistics network that ensures efficient product distribution across Japan. Additionally, the company's ability to adapt to market demands and maintain a diversified product portfolio helps sustain its profitability in the competitive agribusiness sector.

Lacto Japan Co., Ltd. Financial Statement Overview

Summary

Lacto Japan Co., Ltd. presents a robust financial profile with strong revenue growth and efficient operations. The income statement showcases a healthy revenue increase and moderate profit margins. The balance sheet reflects a stable financial position with moderate leverage and solid asset management. However, cash flow challenges indicate a need for better cash management.

Income Statement

Lacto Japan Co., Ltd. has demonstrated strong revenue growth with a 7.93% increase from the previous year, indicating solid market demand. The gross profit margin stands at 5.89% and the net profit margin at 1.84%, reflecting moderate profitability. EBIT and EBITDA margins are 2.61% and 2.96% respectively, showcasing operational efficiency. Overall, the income statement indicates healthy revenue growth with moderate profit margins.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 1.19, indicating moderate leverage. The return on equity (ROE) is 11.41%, suggesting effective use of equity to generate profit. The equity ratio is 33.87%, reflecting a balanced approach between debt and equity financing. Overall, the balance sheet reveals a well-managed capital structure with moderate leverage and solid asset management.

Cash Flow

Lacto Japan Co., Ltd. faced a decrease in free cash flow, now at -185 million yen, reflecting potential challenges in generating cash from operations. The operating cash flow to net income ratio is 0.20, suggesting that cash generation from operations is lower than net income. The free cash flow to net income ratio is -0.06, indicating issues in converting income into cash. Despite these challenges, the company has managed financing activities effectively to support operations. Overall, the cash flow statement highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	162.44B	170.91B	158.33B	147.42B	110.88B	110.84B
Gross Profit	8.98B	10.07B	7.91B	7.46B	6.64B	6.63B
EBITDA	4.13B	5.05B	3.45B	3.64B	3.11B	3.25B
Net Income	2.78B	3.15B	2.05B	2.29B	1.96B	2.06B
Balance Sheet
Total Assets	78.25B	81.44B	72.04B	73.46B	52.90B	43.37B
Cash, Cash Equivalents and Short-Term Investments	8.90B	9.08B	7.78B	6.38B	5.51B	5.00B
Total Debt	33.60B	32.92B	30.91B	30.87B	19.29B	14.05B
Total Liabilities	51.28B	53.85B	47.31B	50.98B	33.32B	25.78B
Stockholders Equity	26.97B	27.58B	24.72B	22.48B	19.58B	17.59B
Cash Flow
Free Cash Flow	385.78M	-185.00M	2.06B	-10.57B	-4.22B	4.38B
Operating Cash Flow	385.78M	636.00M	3.22B	-10.41B	-4.04B	4.53B
Investing Cash Flow	0.00	-596.00M	-1.36B	-287.22M	-291.56M	-136.91M
Financing Cash Flow	0.00	1.10B	-772.20M	11.08B	4.66B	-3.76B

Lacto Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3705.00
• 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:3139, the sentiment is Positive. The current price of 3705 is above the 20-day moving average (MA) of 3655.50, above the 50-day MA of 3530.36, and above the 200-day MA of 2994.56, indicating a bullish trend. The MACD of 58.08 indicates Positive momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 50.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3139.

Lacto Japan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3139	79 Outperform	¥36.99B	10.46		2.70%	11.22%	49.40%
2669	77 Outperform	¥32.16B	16.52		1.14%	3.87%	5.01%
2612	74 Outperform	¥33.40B	14.17		2.75%	10.57%	4.52%
2820	73 Outperform	¥34.28B	23.91		1.46%	10.43%	-0.65%
2923	71 Outperform	¥35.91B	18.42		10.20%	8.40%	-30.66%
2831	68 Neutral	¥30.44B	12.38		1.85%	1.56%	40.56%
Sector *	53 Neutral	C$4.38B	3.83	-22.83%	4.39%	8.13%	2.00%

Lacto Japan Co., Ltd. Corporate Events

Lacto Japan Reports Strong Q1 2025 Financial Results

Lacto Japan Co., Ltd. reported a significant increase in its financial performance for the three months ended February 28, 2025, with net sales rising by 15.8% and profit attributable to owners of the parent increasing by 46.7% compared to the previous year. The company forecasts continued growth for the fiscal year ending November 30, 2025, with expected increases in net sales and profits, indicating a positive outlook for stakeholders.

Lacto Japan Completes Treasury Share Disposal for Stock Compensation

Lacto Japan Co., Ltd. has completed the payment procedures for the disposal of 12,831 treasury shares as restricted stock compensation, as resolved in their March 14, 2025 Board of Directors meeting. This move is aimed at compensating five directors, excluding outside directors and audit and supervisory committee members, with a total transaction value of ¥36,940,449, potentially impacting the company’s financial structuring and stakeholder interests.