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

• Market Cap: ¥38.84B
• Dividend Yield: 2.53%
• Average Volume (3M): 71.10K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.53
• Revenue Growth: 11.82%
• EPS Growth: 54.32%
• Country: JP
• Employees: 398
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 160.02
• Shares Outstanding: 10,021,600
• 10 Day Avg. Volume: 153,780
• 30 Day Avg. Volume: 71,100
• PEG Ratio: 0.98
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 217.91
• 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: ¥4,120.00
• Price Target Upside: 5.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥4,662.00 ▲(19.85%Upside)

Lacto Japan Co., Ltd. achieves a strong overall stock score due to robust financial performance and positive technical analysis indicators. The company's reasonable valuation further supports its investment appeal. However, the need for improved cash management represents an area for growth.

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

Company Description

Lacto Japan Co., Ltd. is a Japanese company that operates primarily in the food industry, focusing on the importation and distribution of dairy products and food ingredients. The company supplies a range of products including cheese, butter, and other dairy items, catering to the needs of both industrial and retail customers. Lacto Japan is known for its strong relationships with international suppliers, ensuring a steady supply of high-quality products to the Japanese market.

How the Company Makes Money

Lacto Japan Co., Ltd. generates revenue through the importation and wholesale distribution of dairy products and food ingredients. The company sources products from international suppliers, leveraging its global network to procure a wide variety of dairy items such as cheese and butter. These products are then sold to industrial clients, food manufacturers, and retailers across Japan. Additionally, Lacto Japan benefits from strategic partnerships with global dairy producers, which help secure competitive pricing and supply stability, thereby enhancing its profitability. The company's revenue model is largely based on the volume of products distributed and the margins achieved through efficient supply chain management.

Lacto Japan Co., Ltd. Financial Statement Overview

Summary

Lacto Japan Co., Ltd. presents strong revenue growth and operational efficiency, as seen in its income statement. The balance sheet reflects a stable financial position with moderate leverage. However, cash flow challenges highlight the 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	170.91B	158.33B	147.42B	110.88B	110.84B
Gross Profit	10.07B	7.91B	7.46B	6.64B	6.63B
EBITDA	5.05B	3.45B	3.64B	3.11B	3.25B
Net Income	3.15B	2.05B	2.29B	1.96B	2.06B
Balance Sheet
Total Assets	81.44B	72.04B	73.46B	52.90B	43.37B
Cash, Cash Equivalents and Short-Term Investments	9.08B	7.78B	6.38B	5.51B	5.00B
Total Debt	32.92B	30.91B	30.87B	19.29B	14.05B
Total Liabilities	53.85B	47.31B	50.98B	33.32B	25.78B
Stockholders Equity	27.58B	24.72B	22.48B	19.58B	17.59B
Cash Flow
Free Cash Flow	-185.00M	2.06B	-10.57B	-4.22B	4.38B
Operating Cash Flow	636.00M	3.22B	-10.41B	-4.04B	4.53B
Investing Cash Flow	-596.00M	-1.36B	-287.22M	-291.56M	-136.91M
Financing Cash Flow	1.10B	-772.20M	11.08B	4.66B	-3.76B

Lacto Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3890.00
• 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 3890 is above the 20-day moving average (MA) of 3851.00, above the 50-day MA of 3655.84, and above the 200-day MA of 3069.31, indicating a bullish trend. The MACD of 97.69 indicates Positive momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 22.87 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	77 Outperform	¥38.84B	8.98		2.53%	11.82%	54.32%
2669	77 Outperform	¥31.63B	19.72		1.16%	1.04%	-10.84%
2612	74 Outperform	¥34.00B	14.23		2.71%	10.57%	4.52%
2820	73 Outperform	¥31.74B	22.20		1.58%	10.43%	-0.65%
2923	71 Outperform	¥36.11B	18.52		10.14%	8.40%	-30.66%
Sector *	71 Outperform	€2.88B	17.36	8.89%	3.51%	5.47%	-7.07%
2831	68 Neutral	¥31.53B	12.82		1.67%	1.56%	40.56%

Lacto Japan Co., Ltd. Corporate Events

Lacto Japan Reports Strong Financial Growth in H1 2025

Lacto Japan Co., Ltd. reported a significant increase in its financial performance for the six months ending May 31, 2025, with net sales rising by 12.7% and operating profit by 46.8% compared to the previous year. The company’s strong financial results reflect its robust market positioning and effective operational strategies, with implications for continued growth and increased dividends for stakeholders.

The most recent analyst rating on (JP:3139) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Lacto Japan Co., Ltd. stock, see the JP:3139 Stock Forecast page.

Lacto Japan Revises Earnings Forecast Upward Amid Strong Performance

Lacto Japan Co., Ltd. has revised its earnings forecast for the fiscal year ending November 30, 2025, due to improved sales and profit margins in its domestic and Asian business divisions. Despite challenges in the global economy and rising food prices in Japan, the company anticipates higher net sales and profits, driven by strong performance in segments outside of cheese manufacturing and favorable market conditions.

The most recent analyst rating on (JP:3139) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Lacto Japan Co., Ltd. stock, see the JP:3139 Stock Forecast page.