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

• Market Cap: ¥13.60B
• Dividend Yield: 1.43%
• Average Volume (3M): 72.90K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.30
• 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): 73.4
• Revenue Forecast (FY): ¥63.10B

• Rating: 78 Outperform
• Price Target: ¥1,007.00 ▲(17.50% 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

Sustained Revenue Growth

Multi-year revenue growth nearly doubled from 2021 to 2025, evidencing durable demand for ready-to-eat products. This supports scale benefits across production and distribution, strengthens bargaining with retail customers, and underpins long-term market position in convenience and supermarket channels.

Strong Free Cash Flow Recovery

A swift shift to positive free cash flow signals improved cash generation and operational discipline. High operating cash flow relative to net income (7.01) indicates earnings quality, enabling reinvestment, debt reduction, or shareholder returns without relying on external financing over the medium term.

Improving Gross & EBITDA Margins

Rising gross and EBITDA margins point to better cost control and operational efficiency in factory-based production and chilled logistics. These margin improvements are structural, reflecting scale, process gains, and procurement leverage, enhancing resilience to input-cost swings over months.

Negative Factors

Very Low Net Profit Margin

Net margins below 1% leave little buffer for shocks and constrain retained earnings. Despite revenue and EBITDA gains, almost all incremental revenue is absorbed by expenses or non-operating costs, limiting internal funding for growth initiatives and making profits sensitive to cost or demand swings.

High Leverage / Low Equity Ratio

A low equity ratio and material debt reliance increase financial vulnerability to rising rates or weaker sales. Although D/E improved, the thin equity cushion raises refinancing and liquidity risks and could limit strategic flexibility in investing in capacity or weathering prolonged margin pressure.

Moderate ROE and Shareholder Returns

ROE of ~6% signals modest returns on shareholder capital relative to expectations for industrial food processors. Combined with low net margins and leverage, this suggests limited efficiency in converting growth into shareholder value, potentially constraining long-term capital attraction and strategic investment.

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	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	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: Negative
• Last Price: 857.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 857 is below the 20-day moving average (MA) of 876.90, below the 50-day MA of 877.50, and above the 200-day MA of 778.93, indicating a neutral trend. The MACD of -14.09 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥13.60B	12.33	―	1.43%	10.77%	131.68%
2819	68 Neutral	¥25.05B	4.38	―	1.87%	3.08%	-16.77%
2831	64 Neutral	¥33.08B	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	¥24.54B	5.73	―	1.32%	-0.24%	-45.01%
2923	62 Neutral	¥37.58B	11.61	―	0.80%	8.19%	42.84%
2910	46 Neutral	¥37.33B	21.75	―	1.65%	-1.17%	-84.81%