Pigeon Corporation (7956) AI Stock Analysis

• Market Cap: ¥222.04B
• Dividend Yield: 4.09%
• Average Volume (3M): 816.69K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.48
• Revenue Growth: 9.02%
• EPS Growth: 46.48%
• Country: JP
• Employees: 3,066
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): 19.18
• Shares Outstanding: 121,653,490
• 10 Day Avg. Volume: 572,930
• 30 Day Avg. Volume: 816,693
• 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: ¥1,912.00
• Price Target Upside: 3.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,912.00 ▲(3.02% Upside)

Pigeon Corporation's strong financial performance is the most significant factor, showcasing robust growth, profitability, and financial stability. The valuation is also favorable, with a reasonable P/E ratio and an attractive dividend yield. Technical analysis indicates a neutral to slightly weak short-term outlook, but this is outweighed by the company's solid fundamentals.

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 segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. It offers breastfeeding, weaning, skincare, women's care, and large-sized products for babies, as well as other products for babies and mothers. The company also provides child-rearing support, babysitter dispatch, event child-care, and preschool education services; and operates child-minding facilities and daycare centers. In addition, it offers elder care and anti-aging products, and elder care support services; and baby and mother related care products, such as nursing bottles and nipples, toiletries, and skincare products. Pigeon Corporation markets its products under the Pigeon and Lansinoh brands. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Pigeon Corporation generates revenue primarily through the sale of its diverse range of baby and child care products. The company's key revenue streams include the retail and wholesale distribution of baby bottles, nipples, and breastfeeding accessories, which are among its most popular products. Pigeon also earns income from its skincare and health-related items designed for infants and toddlers. Significant partnerships with retailers and distributors worldwide help expand its market reach, and its strong brand reputation ensures a loyal customer base. Additionally, Pigeon's ongoing investment in research and development enables the introduction of new and innovative products, further driving sales and profitability.

Pigeon Corporation Financial Statement Overview

Summary

Pigeon Corporation exhibits strong financial health across all verticals. The income statement indicates robust growth and profitability, the balance sheet reflects low leverage and strong equity, and the cash flow statement shows excellent cash generation. The company is well-positioned for sustained growth with minimal financial risk.

Income Statement

Pigeon Corporation has shown a consistent revenue growth rate of 10.28% from 2023 to 2024. The gross profit margin improved to 49.31% in 2024, suggesting effective cost management. The net profit margin has also increased to 8.03%, indicating enhanced profitability. EBIT and EBITDA margins remain solid at 11.65% and 16.33% respectively, reflecting strong operational efficiency.

Balance Sheet

The company has a low debt-to-equity ratio of 0.02, indicating strong financial stability with minimal reliance on debt. The return on equity (ROE) is 10.32%, showcasing decent returns for shareholders. The equity ratio is high at 74.91%, signifying a robust equity base supporting the total assets.

Cash Flow

Pigeon Corporation’s free cash flow grew by 37.67% from 2023 to 2024, displaying a strong cash generation capability. The operating cash flow to net income ratio is 1.71, indicating efficient conversion of profits into cash. The free cash flow to net income ratio stands at 1.46, demonstrating healthy cash flow relative to profit.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.65B	104.17B	94.46B	94.92B	93.08B	99.37B
Gross Profit	52.63B	51.37B	45.45B	44.83B	44.07B	49.92B
EBITDA	17.48B	17.82B	16.33B	17.14B	17.77B	19.84B
Net Income	8.80B	8.37B	7.42B	8.58B	8.79B	10.64B
Balance Sheet
Total Assets	101.66B	108.31B	100.44B	101.73B	98.04B	93.47B
Cash, Cash Equivalents and Short-Term Investments	31.80B	39.20B	34.36B	34.28B	35.22B	37.16B
Total Debt	4.94B	1.77B	1.90B	2.06B	1.94B	1.14B
Total Liabilities	22.69B	23.70B	19.35B	21.78B	21.23B	20.85B
Stockholders Equity	76.47B	81.14B	77.58B	76.69B	73.88B	69.90B
Cash Flow
Free Cash Flow	0.00	12.21B	8.87B	7.65B	5.00B	14.58B
Operating Cash Flow	0.00	14.28B	14.52B	13.21B	10.89B	18.40B
Investing Cash Flow	0.00	-1.14B	-5.47B	-5.66B	-5.59B	-3.81B
Financing Cash Flow	0.00	-10.64B	-10.26B	-9.67B	-8.69B	-9.23B

Pigeon Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1856.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7956, the sentiment is Positive. The current price of 1856 is above the 20-day moving average (MA) of 1791.55, above the 50-day MA of 1742.28, and above the 200-day MA of 1620.28, indicating a bullish trend. The MACD of 32.50 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 71.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7956.

Pigeon Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7956	75 Outperform	¥222.04B	23.56		4.09%	9.02%	46.48%
Sector *	63 Neutral	$20.52B	14.80	-2.68%	3.09%	1.95%	-4.76%
KAOCF	―	$21.76B	28.24	10.99%	3.14%	―	―
LIOPF	―	$2.96B	21.67	7.29%	2.91%	―	―
PCCOF	―	$1.93B	12.57	8.19%	―	―	―
RPHCF	―	$4.08B	14.54	13.33%	1.27%	―	―
UNCHF	―	$12.17B	20.04	11.28%	1.70%	―	―

Pigeon Corporation Corporate Events

Pigeon Corporation Reports Strong First Half Financial Results for 2025

Pigeon Corporation reported its consolidated financial results for the first half of the fiscal year ending December 31, 2025, showing a notable increase in net sales and net income attributable to owners of the parent. Net sales rose by 4.7% to ¥53,734 million, while net income saw a significant increase of 29.4% to ¥4,624 million compared to the same period last year. The company maintained its dividend forecast, indicating stability in its financial strategy. Despite a decrease in comprehensive income, Pigeon Corporation’s performance reflects a positive trajectory in its financial health and market positioning.

The most recent analyst rating on (JP:7956) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Pigeon Corporation stock, see the JP:7956 Stock Forecast page.

Pigeon Corporation Reports Strong Q1 Financial Results for FY2025

Pigeon Corporation reported a positive financial performance for the first quarter of the fiscal year ending December 31, 2025, with net sales reaching ¥25,227 million, marking a 6.2% increase year-on-year. The company also saw significant growth in operating income and net income attributable to owners of the parent, indicating a strong start to the fiscal year. The results reflect Pigeon’s robust market positioning and effective business strategies, which could enhance stakeholder confidence and potentially impact its stock performance positively.

The most recent analyst rating on (JP:7956) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Pigeon Corporation stock, see the JP:7956 Stock Forecast page.