Miyoshi Oil & Fat Co., Ltd. (4404) AI Stock Analysis

• Market Cap: ¥21.79B
• Dividend Yield: 2.81%
• Average Volume (3M): 26.28K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.59
• Revenue Growth: 2.25%
• EPS Growth: 135.41%
• Country: JP
• Employees: 577
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 846.45
• Shares Outstanding: 10,306,895
• 10 Day Avg. Volume: 20,320
• 30 Day Avg. Volume: 26,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,014.00
• Price Target Upside: -5.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥2,014.00 ▼(-5.67% Downside)

Miyoshi Oil & Fat Co., Ltd. is well-positioned in the market with strong financial metrics and an attractive valuation, though it faces potential risks from high technical indicators and past financial volatility. The stock is supported by solid financial performance and favorable valuation metrics, but investors should be cautious of the overbought technical indicators.

Miyoshi Oil & Fat Co., Ltd. Business Overview & Revenue Model

Company Description

Miyoshi Oil & Fat Co., Ltd. (4404) is a Japanese company engaged in the manufacturing and sale of oils and fats. The company provides a range of products including edible oils, industrial oils, and specialty fats, catering to both consumer and industrial markets. Miyoshi Oil & Fat Co., Ltd. is involved in the production of products used in food processing, cosmetics, and chemical industries, leveraging its expertise in oil and fat processing technologies.

How the Company Makes Money

Miyoshi Oil & Fat Co., Ltd. makes money primarily through the sale of its oils and fats products. Its revenue streams include the distribution of edible oils used for cooking and food processing, as well as industrial oils and specialty fats for various applications in different industries. The company may also engage in strategic partnerships with other firms to expand its market reach and enhance its product offerings. Key factors contributing to its earnings include its ability to maintain high product quality, adapt to market demands, and innovate in response to industry trends.

Miyoshi Oil & Fat Co., Ltd. Financial Statement Overview

Summary

Miyoshi Oil & Fat Co., Ltd. shows strong financial performance with consistent revenue growth and improved profitability margins. However, increasing liabilities and past volatility in the income statement pose potential risks. Cash flow management reveals areas of concern, particularly in sustaining free cash flow levels.

Income Statement

Miyoshi Oil & Fat Co., Ltd. demonstrates a solid performance in its income statement with consistent revenue growth over the years, culminating in a 1.42% increase from 2023 to 2024. The gross profit margin has improved substantially in 2024, reaching approximately 20.39%, which indicates efficient production cost management. The net profit margin also shows positive development, rising to 4.94% in 2024. EBIT and EBITDA margins have improved significantly, reflecting enhanced operational efficiency. However, past volatility, such as the negative EBIT in 2022, highlights potential risks.

Balance Sheet

The balance sheet reveals a stable financial position, with a debt-to-equity ratio of 0.66 in 2024, suggesting moderate leverage. The equity ratio stands at 42.67%, reflecting a sound capital structure. ROE has improved to 9.08% in 2024, indicating effective utilization of equity to generate profits. Despite these strengths, the company's increasing total liabilities over time could pose future financial risks if not managed prudently.

Cash Flow

The cash flow statement shows mixed results with a decrease in operating cash flow from 2023 to 2024, but free cash flow remains positive, albeit lower than previous years. The operating cash flow to net income ratio is 1.16 in 2024, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio has declined, suggesting potential challenges in maintaining liquidity. The company's ability to sustain free cash flow growth is crucial for future stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.17B	57.03B	56.24B	52.74B	47.48B	43.08B
Gross Profit	11.20B	11.63B	9.63B	5.09B	7.15B	7.45B
EBITDA	4.14B	6.00B	4.79B	1.48B	2.73B	2.78B
Net Income	2.01B	2.82B	2.08B	-267.00M	677.00M	1.02B
Balance Sheet
Total Assets	75.05B	72.71B	62.44B	58.67B	52.62B	49.19B
Cash, Cash Equivalents and Short-Term Investments	10.15B	7.07B	6.11B	4.96B	5.53B	4.86B
Total Debt	22.53B	20.55B	11.61B	12.47B	9.04B	9.77B
Total Liabilities	44.46B	41.64B	34.19B	34.11B	27.33B	24.97B
Stockholders Equity	30.55B	31.03B	28.21B	24.52B	25.26B	24.20B
Cash Flow
Free Cash Flow	0.00	347.00M	1.84B	-4.93B	978.00M	-74.00M
Operating Cash Flow	0.00	3.28B	3.72B	-3.56B	3.35B	2.39B
Investing Cash Flow	0.00	-2.52B	-1.49B	176.00M	-1.44B	-2.50B
Financing Cash Flow	0.00	196.00M	-1.07B	2.81B	-1.24B	-1.26B

Miyoshi Oil & Fat Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2135.00
• 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:4404, the sentiment is Positive. The current price of 2135 is above the 20-day moving average (MA) of 2124.70, above the 50-day MA of 2059.98, and above the 200-day MA of 1734.58, indicating a bullish trend. The MACD of 13.06 indicates Positive momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4404.

Miyoshi Oil & Fat Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2602	77 Outperform	¥172.74B	7.08	12.23%	3.44%	4.12%	60.25%
2669	74 Outperform	¥31.92B	19.96	6.70%	1.15%	1.04%	-10.84%
4404	72 Outperform	¥21.79B	2.38	―	2.81%	2.25%	135.41%
2612	71 Outperform	¥34.73B	14.83	6.65%	2.65%	10.50%	-3.82%
2613	70 Outperform	¥70.04B	11.17	6.61%	3.30%	-4.47%	-7.10%
2607	60 Neutral	¥312.99B	386.45	1.06%	1.43%	19.69%	-61.83%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%