DELICA FOODS HOLDINGS CO. LTD. (3392) AI Stock Analysis

• Market Cap: ¥15.95B
• Dividend Yield: 1.43%
• Average Volume (3M): 72.90K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.24
• Revenue Growth: 10.77%
• EPS Growth: 131.68%
• Country: JP
• Employees: 747
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 17.37
• Shares Outstanding: 16,372,000
• 10 Day Avg. Volume: 67,280
• 30 Day Avg. Volume: 72,900
• PEG Ratio: -0.33
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 2.82
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 86.4
• Revenue Forecast (FY): ¥64.00B

• Rating: 78 Outperform
• Price Target: ¥1,115.00 ▲(30.11% Upside)
• Action: Upgraded Date: 08/13/25
• Date: Action: Upgraded 08/13/25

DELICA FOODS HOLDINGS CO. LTD. demonstrates strong technical momentum and solid financial performance, despite challenges with profitability and leverage. The reasonable valuation further supports the stock's potential, making it an attractive option for investors seeking growth in the packaged foods industry.

Positive Factors

Factory-based RTE supply to retailers

A factory-based production model with chilled supply logistics and direct supply relationships to convenience stores and supermarkets supports scale, consistent quality and recurring orders. This durable distribution footprint underpins stable demand and operational efficiencies over months.

Sustained revenue expansion

Material multi-year top-line growth demonstrates durable market demand and successful product penetration. Rising sales provide scope for fixed-cost absorption, potential margin improvement and investment capacity, supporting the business over the next 2–6 months and beyond.

Material improvement in cash generation

Turnaround to positive free cash flow and a high operating-cash-to-net-income ratio indicate stronger cash conversion and operational discipline. Improved FCF enhances ability to fund capex, reduce debt or invest in efficiency projects, bolstering financial durability.

Negative Factors

Weak net profitability

Very low and falling net margins limit retained earnings and resilience to cost inflation or input shocks. Despite revenue growth, constrained bottom-line profitability restricts capital available for strategic initiatives and makes earnings sensitive to modest adverse events.

Significant leverage

Although leverage has improved, a D/E around 1.18 and a low equity ratio indicate material debt reliance. This reduces financial flexibility, raises interest exposure and limits buffer against cyclical stress, making capital structure a medium-term vulnerability.

Concentration in retail channels

Heavy dependence on convenience stores and supermarkets concentrates revenue risk and subjects margins to retailer bargaining power and contract changes. Channel concentration can amplify demand swings and constrain pricing flexibility over multiple quarters.

DELICA FOODS HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Delica Foods Holdings Co., Ltd. wholesales vegetables in Japan. The company engages in the delivery of whole and cut vegetables. It serves family and fast food restaurants, convenience stores, etc. The company was formerly known as Delica Foods Co.,Ltd. and changed its name to Delica Foods holdings Co.,Ltd. in October 2017. The company was founded in 1979 and is based in Tokyo, Japan.

How the Company Makes Money

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DELICA FOODS HOLDINGS CO. LTD. Financial Statement Overview

Summary

DELICA FOODS HOLDINGS CO. LTD. shows strong revenue growth and operational cash flow, but faces challenges with profitability margins and reliance on debt. Improving net profit margins and reducing leverage could enhance financial stability.

Income Statement

DELICA FOODS HOLDINGS CO. LTD. has shown consistent revenue growth over the years, with a notable increase from ¥31.72 billion in 2021 to ¥58.76 billion in 2025. The gross profit margin improved to 24.42% in 2025, reflecting effective cost management. However, the net profit margin decreased from 1.92% in 2024 to 0.92% in 2025, indicating higher expenses or lower profitability. Despite this, the EBITDA margin improved, suggesting stronger operational performance.

Balance Sheet

The company's debt-to-equity ratio decreased to 1.18 in 2025, indicating improved leverage compared to previous years. The return on equity (ROE) in 2025 was 6.00%, showcasing moderate profitability for shareholders. However, the equity ratio remained low at 33.90%, reflecting a significant reliance on debt financing. This poses potential risks if not managed carefully.

Cash Flow

DELICA FOODS HOLDINGS demonstrated solid cash flow performance, with a significant improvement in free cash flow from a negative ¥3.22 billion in 2024 to ¥2.92 billion in 2025. The operating cash flow to net income ratio was 7.01 in 2025, indicating strong cash generation relative to profitability. The positive trajectory in free cash flow growth reflects effective capital and operational management.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	60.31B	58.76B	52.82B	47.93B	39.79B	31.73B
Gross Profit	15.41B	14.36B	13.20B	11.70B	9.04B	6.22B
EBITDA	2.90B	1.98B	2.14B	1.60B	544.50M	-578.23M
Net Income	1.17B	542.01M	1.01B	702.50M	-746.54M	-953.29M
Balance Sheet
Total Assets	28.26B	26.64B	29.13B	25.04B	22.95B	22.81B
Cash, Cash Equivalents and Short-Term Investments	5.91B	3.74B	4.27B	5.52B	4.56B	4.64B
Total Debt	11.91B	10.66B	13.79B	11.61B	12.00B	11.64B
Total Liabilities	18.76B	17.61B	20.38B	17.33B	16.71B	15.70B
Stockholders Equity	9.51B	9.03B	8.75B	7.72B	6.24B	7.12B
Cash Flow
Free Cash Flow	0.00	2.92B	-3.21B	741.61M	-200.70M	-768.70M
Operating Cash Flow	0.00	3.80B	1.69B	1.70B	857.09M	72.48M
Investing Cash Flow	0.00	-812.91M	-4.87B	-976.59M	-1.10B	-830.92M
Financing Cash Flow	0.00	-3.42B	1.94B	289.86M	140.47M	1.14B

DELICA FOODS HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 857.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3392, the sentiment is Positive. The current price of 857 is below the 20-day moving average (MA) of 887.10, below the 50-day MA of 892.52, and above the 200-day MA of 797.93, indicating a bullish trend. The MACD of 28.74 indicates Negative momentum. The RSI at 64.26 is Neutral, neither overbought nor oversold. The STOCH value of 85.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3392.

DELICA FOODS HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3392	78 Outperform	¥15.95B	12.33	―	1.43%	10.77%	131.68%
2819	68 Neutral	¥23.91B	4.38	―	1.87%	3.08%	-16.77%
2831	64 Neutral	¥33.60B	7.86	―	1.96%	0.16%	10.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2922	62 Neutral	¥24.44B	5.73	―	1.32%	-0.24%	-45.01%
2923	62 Neutral	¥38.89B	4.55	―	0.80%	8.19%	42.84%
2910	46 Neutral	¥37.28B	21.75	―	1.65%	-1.17%	-84.81%