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

• Market Cap: ¥14.45B
• Dividend Yield: 1.43%
• Average Volume (3M): 72.90K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.26
• Revenue Growth: 10.77%
• EPS Growth: 131.68%
• Country: JP
• Employees: 747
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 11.98
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,010.00 ▲(17.85% Upside)

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

Revenue Growth & Market Scale

Sustained revenue growth over several years demonstrates expanding market penetration in ready-to-eat retail channels. Durable demand from convenience stores and supermarkets supports scale-driven efficiencies, stronger supplier negotiating power, and a larger base to fund product development and distribution investments.

Improved Cash Generation

A material swing to positive free cash flow and high operating-cash-to-net-income ratio indicates the business now converts sales into real cash. This enhances financial flexibility for capex, deleveraging, or shareholder returns and reduces dependence on external financing over the medium term.

Factory-based Production & Chilled Logistics

Integrated factory production and chilled logistics create structural competitive advantages for perishable RTE foods: quality control, cold-chain reliability, and scale distribution. These capabilities raise barriers to entry and support consistent shelf availability and retailer relationships over time.

Negative Factors

Very Thin Net Profit Margin

Margins are razor-thin and recently contracted, leaving limited buffer against cost inflation, supplier disruptions, or pricing pressure. Persistently low net margins constrain reinvestment, free cash generation resilience under stress, and the ability to sustainably improve shareholder returns.

High Leverage / Low Equity Ratio

Material reliance on debt financing increases interest expense sensitivity and reduces strategic flexibility. A low equity ratio means balance sheet shock absorption is limited, raising refinancing and covenant risks that could constrain capital spending or acquisitions over the medium term.

Profitability vs Cost Structure Mismatch

Improving gross margins alongside falling net margins signals rising operating or non-operating costs (SG&A, interest, or one-offs). That mismatch suggests structural cost control issues that could erode long-term profitability unless fixed, limiting sustainable margin expansion despite better unit economics.

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

DELICA FOODS generates revenue through multiple key streams, primarily from the sale of its processed food products across retail and food service channels. The company capitalizes on the growing demand for convenient meal options by offering ready-to-eat and pre-packaged foods in supermarkets, convenience stores, and restaurants. Additionally, DELICA FOODS benefits from strategic partnerships with various retailers and food service providers, enabling it to expand its distribution network and reach a wider audience. The company's focus on quality and innovation, coupled with its strong brand recognition, also contributes to customer loyalty and repeat purchases, driving consistent revenue growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	3.11B	2.12B	2.33B	1.74B	495.70M	-7.85M
Net Income	1.17B	542.01M	1.01B	702.50M	-746.54M	-953.29M
Balance Sheet
Total Assets	28.26B	26.64B	28.85B	24.87B	22.95B	22.63B
Cash, Cash Equivalents and Short-Term Investments	5.91B	3.72B	4.25B	5.50B	4.54B	4.64B
Total Debt	11.91B	10.66B	13.79B	11.61B	12.00B	11.64B
Total Liabilities	18.76B	17.61B	20.10B	17.15B	16.71B	15.52B
Stockholders Equity	9.51B	9.03B	8.75B	7.72B	6.24B	7.12B
Cash Flow
Free Cash Flow	0.00	2.92B	-3.22B	707.15M	-252.13M	-784.20M
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: Positive
• RSI: Neutral
• STOCH: Positive

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 879.45, above the 50-day MA of 843.56, and above the 200-day MA of 735.12, indicating a bullish trend. The MACD of 15.86 indicates Positive momentum. The RSI at 54.23 is Neutral, neither overbought nor oversold. The STOCH value of 19.07 is Positive, 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	¥14.45B	9.95	―	1.43%	10.77%	131.68%
2935	74 Outperform	¥15.55B	12.08	―	2.16%	1.28%	18.81%
2907	72 Outperform	¥10.20B	12.66	―	2.39%	-0.37%	-54.58%
2813	71 Outperform	¥8.67B	7.54	―	3.11%	3.42%	-10.05%
2877	64 Neutral	¥8.96B	18.05	―	1.63%	3.50%	72.85%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2224	52 Neutral	¥12.61B	-344.62	―	0.20%	-5.06%	-122.27%