Iceco Inc. (7698) AI Stock Analysis

• Market Cap: ¥9.94B
• Dividend Yield: 0.89%
• Average Volume (3M): 8.01K
• Price to Earnings (P/E): 18.1
• 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): 70.26
• 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: 72 Outperform
• Price Target: ¥2,811.00 ▲(26.22% Upside)

Iceco Inc. benefits from strong technical momentum and a solid financial position with improved leverage. However, low profitability margins and cash flow variability limit the overall score. The valuation is reasonable but offers limited income potential.

Positive Factors

Consistent revenue growth

Sustained top-line expansion reflects durable demand for portable refrigeration across consumer and outdoor channels. Growing revenue provides scale to invest in R&D, distribution and service, supporting longer-term product development and market share gains versus niche competitors.

Improved leverage and balance sheet

Marked reduction in leverage materially strengthens financial flexibility and lowers default risk. A healthier balance sheet enables the company to fund capex, weather demand cycles, and pursue partnerships or inventory investments without excessive refinancing strain over the next several quarters.

Stable gross margins and operational efficiency

Consistent gross margins indicate durable product economics and pricing discipline in manufacturing and supply. Combined with improving EBITDA/EBIT margins, this suggests the firm can sustain profitability gains from operational improvements and maintain competitive unit economics long term.

Negative Factors

Very low net profit margin

An average net margin near 1% limits retained earnings and resilience to cost shocks. Even with revenue growth, low bottom-line conversion constrains reinvestment capacity, dividend policy flexibility and the ability to build reserves for product development or market expansion over multiple quarters.

Volatile and declining free cash flow

Inconsistent cash conversion raises concerns about funding reliability for capex, inventory and working capital needs. A material FCF decline reduces optionality for strategic spending and increases reliance on external financing, which could pressure margins and growth execution over the medium term.

Moderate returns on equity

ROE near 10% signals only moderate effectiveness in converting equity into profits versus peers. This level can limit shareholder value creation and may indicate the company needs sustained margin improvement or higher asset turnover to generate compelling long-term returns for investors.

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

Iceco Inc. shows solid revenue growth and improved operational efficiency, but low profitability margins and cash flow variability are concerns. The balance sheet is stronger with reduced leverage.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral

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 2468.45, below the 50-day MA of 2275.42, and above the 200-day MA of 1979.49, indicating a bullish trend. The MACD of 93.67 indicates Positive momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 52.45 is Neutral, 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	¥9.60B	6.37	―	0.71%	7.40%	-5.83%
7698	72 Outperform	¥9.94B	18.07	―	0.89%	6.46%	80.02%
3160	71 Outperform	¥8.38B	71.78	―	2.67%	4.13%	-86.75%
7687	71 Outperform	¥3.24B	11.32	―	1.79%	13.82%	23.24%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥8.82B	20.39	―	0.95%	6.26%	67.81%
3541	59 Neutral	¥16.87B	-300.88	―	―	15.71%	-90.92%