Lacto Japan Co., Ltd. (JP:3139)
:3139
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Lacto Japan Co., Ltd.
(3139)
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Rating:59Neutral
Price Target:
¥3,574.00
▲(3.44% Upside)
Action:ReiteratedDate:01/16/26
The score is held back primarily by weak cash flow (negative operating and free cash flow recently) and meaningful leverage, despite strong revenue growth and improved profitability. Technical signals are also bearish with the stock trading below major moving averages. Offsetting these risks, the low P/E and healthy dividend yield improve the overall attractiveness.
Positive Factors
Strong revenue growth
A large, durable revenue step-up indicates strong product demand and successful distribution scaling. Sustained top-line growth supports margin leverage, capacity investments and brand expansion in Japan and nearby export markets, enabling longer-term earnings improvement if execution continues.
Negative Factors
Weak cash generation
Recent negative operating and free cash flow reduces internal funding for working capital and capex, increasing reliance on external financing. Over months this constrains flexibility, raises refinancing risk and may force trade-offs between growth investment and liquidity preservation if cash conversion doesn't recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
A large, durable revenue step-up indicates strong product demand and successful distribution scaling. Sustained top-line growth supports margin leverage, capacity investments and brand expansion in Japan and nearby export markets, enabling longer-term earnings improvement if execution continues.
Read all positive factors
Lacto Japan Co., Ltd. (3139) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥36.80B
Dividend Yield3.84%
Average Volume (3M)80.31K
Price to Earnings (P/E)8.0
Beta (1Y)0.50
Revenue Growth6.49%
EPS Growth31.81%
CountryJP
Employees398
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)75.96
Shares Outstanding10,050,200
10 Day Avg. Volume173,880
30 Day Avg. Volume80,306
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.07
Price to Sales (P/S)0.19
P/FCF Ratio-26.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)378.1
Revenue Forecast (FY)¥189.00B
Lacto Japan Co., Ltd. Business Overview & Revenue Model
Company Description
Lacto Japan Co., Ltd. engages in sourcing and selling dairy ingredients, cheese products, processed meat, and other products in Japan and internationally. The company's products include full cream milk powder, skimmed milk powder, butter, cream, w...
How the Company Makes Money
Lacto Japan generates revenue primarily through the sale of its dairy products to both retail and wholesale markets. Key revenue streams include direct sales to supermarkets, convenience stores, and food service providers. The company also profits...
Lacto Japan Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 181.64B | 182.82B | 170.91B | 158.33B | 147.42B | 110.88B |
| Gross Profit | 11.49B | 12.29B | 10.07B | 7.91B | 7.46B | 6.64B |
| EBITDA | 6.03B | 6.45B | 4.88B | 3.55B | 3.30B | 3.08B |
| Net Income | 4.29B | 4.32B | 3.15B | 2.05B | 2.29B | 1.96B |
Balance Sheet | ||||||
| Total Assets | 92.90B | 90.21B | 81.44B | 72.04B | 73.46B | 52.90B |
| Cash, Cash Equivalents and Short-Term Investments | 10.36B | 10.16B | 9.08B | 7.78B | 6.38B | 5.51B |
| Total Debt | 43.20B | 37.15B | 33.43B | 31.52B | 31.26B | 19.53B |
| Total Liabilities | 63.47B | 57.76B | 53.85B | 47.31B | 50.98B | 33.32B |
| Stockholders Equity | 29.43B | 32.45B | 27.58B | 24.72B | 22.48B | 19.58B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.34B | 79.00M | 2.11B | -10.56B | -4.20B |
| Operating Cash Flow | 0.00 | -268.00M | 636.00M | 3.22B | -10.41B | -4.04B |
| Investing Cash Flow | 0.00 | -1.51B | -596.00M | -1.36B | -287.22M | -291.56M |
| Financing Cash Flow | 0.00 | 2.43B | 1.10B | -772.20M | 11.08B | 4.66B |
Lacto Japan Co., Ltd. Technical Analysis
Positive
3455.00
Price Trends
3642.50
Positive
3561.95
Positive
3689.00
Negative
Market Momentum
-5.14
Positive
51.59
Neutral
69.70
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 3455 is below the 20-day moving average (MA) of 3667.50, below the 50-day MA of 3642.50, and below the 200-day MA of 3689.00, indicating a neutral trend. The MACD of -5.14 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥66.68B | 8.46 | ― | 3.63% | 1.78% | 19.50% | |
68 Neutral | ¥224.55B | 4.56 | ― | 2.47% | 0.32% | -20.60% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | ¥1.08T | 13.62 | 5.97% | 2.96% | 2.79% | -6.46% | |
59 Neutral | ¥36.80B | 8.05 | ― | 3.84% | 6.49% | 31.81% | |
59 Neutral | ¥429.24B | 10.37 | ― | 2.42% | 2.33% | -8.76% | |
56 Neutral | ¥48.29B | 18.12 | 1.97% | 2.92% | 0.82% | 46.96% |
* Consumer Defensive Sector Average
JP:3139
Lacto Japan Co., Ltd.
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Lacto Japan Co., Ltd. Corporate Events
Lacto Japan to Relocate Tokyo Head Office to Support Business Expansion and Staff Growth
Jan 14, 2026
Lacto Japan has announced the relocation of its head office to the 19th floor of the Toda Building in Kyobashi, Chuo-ku, Tokyo, effective March 30, 2026, while keeping its registered head office district unchanged. The move is driven by anticipate...
Lacto Japan Launches “NEXT-LJ 2028” Mid-Term Plan to Build Growth Foundation and Expand Global Food Business
Jan 14, 2026
Lacto Japan has unveiled a new three-year mid-term management plan, “NEXT-LJ 2028,” starting in fiscal 2026, positioning the period as a foundation-building phase ahead of its 30th anniversary. Under the vision of “Building the f...
Lacto Japan Delivers Profit Surge and Higher Dividends but Guides to Lower Earnings for 2026
Jan 14, 2026
Lacto Japan reported strong results for the fiscal year ended November 30, 2025, with net sales rising 7.0% year on year to ¥182.8 billion and operating profit jumping 33.5% to ¥5.95 billion, driving a 37.2% increase in profit attributab...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.