Iceco Inc. (7698) AI Stock Analysis

• Market Cap: ¥9.84B
• Dividend Yield: 0.89%
• Average Volume (3M): 8.01K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.36
• Revenue Growth: 6.46%
• EPS Growth: 80.02%
• Country: JP
• Employees: 752
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 3.20
• Shares Outstanding: 3,923,900
• 10 Day Avg. Volume: 3,660
• 30 Day Avg. Volume: 8,013
• PEG Ratio: 0.29
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -12.41
• 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: 69 Neutral
• Price Target: ¥2,957.00 ▲(32.78% Upside)
• Action: Downgraded Date: 02/13/26
• Date: Action: Downgraded 02/13/26

The score is primarily driven by solid financial performance (strong revenue growth and improved balance sheet leverage), supported by bullish technical trend signals with price above major moving averages. These positives are tempered by weak profitability and volatile free cash flow, and valuation offers limited upside support due to a low dividend yield.

Positive Factors

Consistent Revenue Growth

Multi-year top-line expansion demonstrates persistent end-market demand and successful distribution execution. A larger revenue base improves fixed-cost absorption, funds ongoing R&D and channel investment, and establishes scale that supports durable competitive positioning in portable refrigeration.

Improved Leverage

Material deleveraging meaningfully reduces financial risk and interest burden, increasing resilience through cycles. Stronger capital structure improves flexibility to fund product development, distribution expansion, or absorb shocks without immediate external financing.

Rising Operating Margins & Stable Gross Margin

Improving EBIT/EBITDA margins with a stable ~17% gross margin indicate better operational execution and cost control. Sustained operating-margin improvement supports reinvestment capacity and suggests structural efficiency gains rather than one-off gains.

Negative Factors

Very Low Net Profit Margin

A roughly 1% net margin leaves minimal buffer for cost shocks or margin pressure, limiting retained earnings and the ability to build equity organically. Low net profitability constrains long-term shareholder returns and makes the business sensitive to small revenue or cost variances.

Volatile Free Cash Flow

Inconsistent FCF and a notable decline in 2025 indicate challenges converting earnings into cash. That weakens capacity to fund capex, dividends, or bolt-on investments from operations and increases reliance on external capital during strategic initiatives or downturns.

Moderate Return on Equity

An average ~10% ROE signals modest capital efficiency versus high-return industrial peers. Lower ROE can limit investor upside and suggests management faces structural constraints in generating high incremental returns on reinvested capital.

Iceco Inc. Business Overview & Revenue Model

Company Description

Iceco Inc. engages in the wholesale of ice creams and frozen foods. The company sells ice creams and frozen foods for commercial use at retail stores, such as drugstores and food supermarkets. It also operates stores and supermarkets focusing on fresh products comprising fruits and vegetables, fresh fish, and meat under the Super Senkan TAIGA name. Iceco Inc. was founded in 1948 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Iceco Inc. generates revenue primarily through the sale of its portable refrigeration products, which are marketed directly to consumers via e-commerce platforms and retail partnerships. Key revenue streams include direct sales from their online store, wholesale distribution to outdoor and camping retailers, and collaborations with travel and adventure companies. Additionally, Iceco may benefit from ongoing sales through accessories and replacement parts for its cooling systems. Their strategic partnerships with e-commerce giants and participation in outdoor trade shows also contribute to brand visibility and sales growth.

Iceco Inc. Financial Statement Overview

Summary

Revenue has grown consistently (¥36.7B in 2020 to ¥54.7B in 2025) with improving EBIT/EBITDA margins, and leverage has materially improved (debt-to-equity down to 0.64 in 2025). Offsetting this, net profit margins remain low (~1% average) and free cash flow has been volatile with a notable decline in 2025.

Income Statement

Iceco Inc. has shown consistent revenue growth over the past years, with a notable increase from ¥36.7 billion in 2020 to ¥54.7 billion in 2025. The gross profit margin has remained stable, averaging around 17% over the years. However, the net profit margin is relatively low, averaging around 1%, indicating potential cost management issues. The EBIT and EBITDA margins have shown improvement, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved, decreasing from 2.36 in 2020 to 0.64 in 2025, suggesting better leverage management. The return on equity (ROE) has been relatively low, averaging around 10%, indicating moderate profitability. The equity ratio has improved, reflecting a stronger equity position relative to assets.

Cash Flow

Iceco Inc. has experienced fluctuations in free cash flow, with a significant decline in 2025. The operating cash flow to net income ratio has been volatile, indicating inconsistencies in cash generation relative to net income. The free cash flow to net income ratio has also shown variability, suggesting potential challenges in converting earnings into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	55.41B	54.72B	50.50B	44.89B	42.26B	40.55B
Gross Profit	9.63B	9.57B	8.66B	7.80B	7.58B	7.45B
EBITDA	1.12B	1.10B	813.61M	579.80M	725.54M	1.25B
Net Income	485.72M	481.66M	318.87M	144.38M	255.25M	523.87M
Balance Sheet
Total Assets	19.43B	17.36B	16.76B	15.12B	14.86B	14.32B
Cash, Cash Equivalents and Short-Term Investments	2.83B	1.47B	2.44B	2.00B	2.34B	1.73B
Total Debt	3.21B	2.47B	2.82B	2.92B	3.38B	4.00B
Total Liabilities	15.45B	13.52B	13.33B	11.96B	11.79B	11.98B
Stockholders Equity	3.97B	3.84B	3.43B	3.17B	3.07B	2.34B
Cash Flow
Free Cash Flow	0.00	-561.67M	526.18M	82.85M	657.26M	875.20M
Operating Cash Flow	0.00	178.63M	1.67B	391.99M	992.40M	1.11B
Investing Cash Flow	0.00	-729.12M	-1.09B	-199.71M	-234.09M	-312.36M
Financing Cash Flow	0.00	-414.72M	-145.32M	-512.17M	-148.25M	-347.30M

Iceco Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2227.00
• 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:7698, the sentiment is Positive. The current price of 2227 is below the 20-day moving average (MA) of 2579.95, below the 50-day MA of 2452.44, and above the 200-day MA of 2053.61, indicating a neutral trend. The MACD of 23.46 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 2.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7698.

Iceco Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2708	77 Outperform	¥10.07B	6.75	―	0.71%	7.40%	-5.83%
3160	71 Outperform	¥8.72B	74.67	―	2.67%	4.13%	-86.75%
7687	71 Outperform	¥3.11B	10.85	―	1.79%	13.82%	23.24%
7698	69 Neutral	¥9.84B	17.52	―	0.89%	6.46%	80.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥9.12B	24.88	―	0.95%	6.26%	67.81%
3541	59 Neutral	¥16.74B	-298.52	―	―	15.71%	-90.92%