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Pigeon Corporation (JP:7956)
:7956
Japanese Market

Pigeon Corporation (7956) AI Stock Analysis

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JP:7956

Pigeon Corporation

(7956)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥1,856.00
▲(15.17% Upside)
Action:UpgradedDate:02/18/26
The score is driven primarily by strong financial performance—especially the very low leverage balance sheet and steady profitability—partly offset by uneven growth and softer recent cash conversion. Technical signals are broadly neutral, and valuation is supported by a high dividend yield but moderated by a mid-to-higher P/E.
Positive Factors
Conservative balance sheet
Very low leverage and steadily rising equity give the company durable financial flexibility. This conservative capital structure supports investment in R&D and distribution, sustains dividend policy in downturns, and reduces refinancing and credit risk over a multi‑month horizon.
Negative Factors
Uneven revenue growth
Revenue growth has been modest and inconsistent since 2020, limiting the company’s ability to compound scale benefits. This uneven top-line trend raises uncertainty about sustaining investment in expansion and may constrain medium‑term margin expansion and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily rising equity give the company durable financial flexibility. This conservative capital structure supports investment in R&D and distribution, sustains dividend policy in downturns, and reduces refinancing and credit risk over a multi‑month horizon.
Read all positive factors

Pigeon Corporation (7956) vs. iShares MSCI Japan ETF (EWJ)

Pigeon Corporation Business Overview & Revenue Model

Company Description
Pigeon Corporation manufactures, sells, imports, and exports baby and child-care products, maternity items, women's care products, home healthcare products, and elder care products in Japan and internationally. The company operates in four segment...
How the Company Makes Money
Pigeon Corporation generates revenue through the sale of its consumer goods, primarily in the baby and maternal care segments. The company operates on a B2C model, selling directly to consumers through retail partnerships, e-commerce platforms, an...

Pigeon Corporation Financial Statement Overview

Summary
Strong overall financial quality led by an exceptionally conservative balance sheet (very low leverage, rising equity). Profitability is healthy with solid, stable margins, but revenue growth has been modest/uneven and recent cash conversion vs. earnings has softened, keeping the score below top-tier.
Income Statement
77
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue106.59B109.17B104.17B94.46B94.92B93.08B
Gross Profit53.58B54.84B51.37B45.45B44.83B44.07B
EBITDA17.73B17.76B17.02B15.81B17.14B17.50B
Net Income9.42B8.57B8.37B7.42B8.58B8.79B
Balance Sheet
Total Assets105.40B110.09B108.31B100.44B101.73B98.04B
Cash, Cash Equivalents and Short-Term Investments34.07B39.61B39.20B34.36B34.28B35.22B
Total Debt4.89B1.36B1.77B2.72B2.06B1.38B
Total Liabilities24.75B24.20B23.70B19.35B21.78B21.23B
Stockholders Equity78.10B82.92B81.14B77.58B76.69B73.89B
Cash Flow
Free Cash Flow0.0010.26B12.21B9.04B7.89B5.23B
Operating Cash Flow0.0013.06B14.28B14.52B13.21B10.89B
Investing Cash Flow0.00-3.14B-1.14B-5.47B-5.66B-5.59B
Financing Cash Flow0.00-10.82B-10.64B-10.26B-9.67B-8.69B

Pigeon Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1611.50
Price Trends
50DMA
1636.16
Negative
100DMA
1618.25
Negative
200DMA
1668.77
Negative
Market Momentum
MACD
-12.36
Positive
RSI
44.99
Neutral
STOCH
35.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7956, the sentiment is Negative. The current price of 1611.5 is below the 20-day moving average (MA) of 1630.88, below the 50-day MA of 1636.16, and below the 200-day MA of 1668.77, indicating a bearish trend. The MACD of -12.36 indicates Positive momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 35.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7956.

Pigeon Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥1.66T23.9910.79%3.47%-1.56%-1.15%
77
Outperform
¥189.26B22.494.66%11.38%79.21%
76
Outperform
¥433.02B16.539.09%1.73%2.18%60.81%
71
Outperform
¥544.30B13.9712.66%1.53%18.35%31.87%
70
Outperform
¥2.72T24.0511.50%2.41%4.62%47.68%
65
Neutral
¥415.98B110.375.37%1.95%-3.33%13.76%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7956
Pigeon Corporation
1,600.50
-138.30
-7.95%
JP:4452
Kao
6,022.00
-389.97
-6.08%
JP:4967
Kobayashi Pharmaceutical Co
5,693.00
47.56
0.84%
JP:4912
Lion
1,609.00
-143.87
-8.21%
JP:4527
Rohto Pharmaceutical Co
2,373.00
135.26
6.04%
JP:8113
Unicharm
924.30
-235.36
-20.30%

Pigeon Corporation Corporate Events

Pigeon Revamps Board and Elevates Strategy Chief as Director in Global Reorganization
Feb 13, 2026
Pigeon Corporation has announced board nominations and senior personnel changes effective March 27, 2026, including the reappointment of President and CEO Ryo Yano and several incumbent inside and outside directors. The board has also nominated Ch...
Pigeon Extends and Upsizes Performance-Linked Stock Plan for Directors
Feb 13, 2026
Pigeon Corporation plans to continue and partially revise its performance-linked stock remuneration program for internal directors, subject to shareholder approval at the March 27, 2026 general meeting. The program, structured as a Board Incentive...
Pigeon Posts Steady 2025 Profit Growth and Keeps High Dividend as It Guides for Further Gains in 2026
Feb 13, 2026
Pigeon Corporation reported consolidated net sales of ¥109.2 billion for the year ended December 31, 2025, up 4.8% year on year, with operating income rising 8.4% to ¥13.2 billion and net income attributable to owners of the parent incre...
Pigeon Sets Ninth Medium-Term Plan to Drive Corporate Value Through 2028
Feb 13, 2026
Pigeon Corporation has formulated its Ninth Medium-Term Business Plan, setting a strategic roadmap for the three fiscal years from 2026 through 2028 aimed at further enhancing corporate value. The company will unveil comprehensive details of the p...
Pigeon Launches Voluntary Recall of Habinurse Nursing Care Mist, Sees Minimal Earnings Impact
Feb 12, 2026
Pigeon Corporation has initiated a voluntary recall of 10,290 units of its nursing care product “Habinurse Rakuraku Oshiri Kirei Mist” produced between March and October 2025, after discovering that cracks in some spray tip components ...
Pigeon Corporation Announces Strategic Reorganization Ahead of 2026 Business Plan
Dec 9, 2025
Pigeon Corporation announced a significant reorganization and personnel transfers to prepare for its upcoming Medium-Term Business Plan starting in 2026. The changes aim to enhance global market presence, improve profitability, and strengthen gove...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026