Pigeon Corporation (7956) AI Stock Analysis

• Market Cap: ¥209.84B
• Dividend Yield: 4.73%
• Average Volume (3M): 510.00K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.49
• Revenue Growth: 11.38%
• EPS Growth: 79.21%
• Country: JP
• Employees: 3,066
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 20.15
• Shares Outstanding: 121,653,490
• 10 Day Avg. Volume: 630,790
• 30 Day Avg. Volume: 510,000
• PEG Ratio: 1.63
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 1.67
• P/FCF Ratio: 14.25
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,753.00 ▲(9.02% Upside)

Pigeon Corporation's strong financial performance is the most significant factor, showcasing robust growth, profitability, and financial stability. However, the technical analysis indicates a bearish trend with the stock being oversold, which negatively impacts the overall score. The valuation is reasonable, with a good dividend yield, providing some support to the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling reinvestment in growth initiatives and ensuring operational stability.

Financial Stability

Minimal reliance on debt and a robust equity base provide financial stability, reducing risk and supporting sustainable growth.

Negative Factors

Profit Margin Pressure

While profitability has improved, relatively modest EBIT and EBITDA margins may limit further profit expansion and competitive positioning.

Stock Performance

Persistent bearish trend in stock performance could impact investor sentiment and limit capital raising opportunities.

Market Sentiment

Negative market sentiment, as indicated by technical indicators, may reflect broader concerns about the company's growth prospects.

Pigeon Corporation Business Overview & Revenue Model

Company Description

Pigeon Corporation (7956) is a leading manufacturer and supplier of baby and maternal care products based in Japan. The company operates primarily in the consumer goods sector, focusing on the development and distribution of high-quality products designed for infants, mothers, and children. Pigeon is well-known for its range of items including baby bottles, pacifiers, nursing pads, and various hygiene products, which are marketed under the Pigeon brand. The company also offers products for nursing mothers, including breast pumps and creams, catering to the needs of families worldwide.

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, and its own online store. Key revenue streams include sales of baby feeding products, hygiene items, and nursing accessories. Pigeon also benefits from established relationships with major retailers and distributors, which help in expanding its market reach. Additionally, the company invests in research and development to innovate and enhance its product offerings, which helps sustain its competitive edge and drive sales growth.

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	106.59B	104.17B	94.46B	94.92B	93.08B	99.37B
Gross Profit	53.58B	51.37B	45.45B	44.83B	44.07B	49.92B
EBITDA	17.42B	17.82B	16.33B	17.14B	17.77B	19.84B
Net Income	9.42B	8.37B	7.42B	8.58B	8.79B	10.64B
Balance Sheet
Total Assets	105.40B	108.31B	100.44B	101.73B	98.04B	93.47B
Cash, Cash Equivalents and Short-Term Investments	34.07B	39.20B	34.36B	34.28B	35.22B	37.16B
Total Debt	4.89B	1.77B	1.90B	2.06B	1.94B	1.14B
Total Liabilities	24.75B	23.70B	19.35B	21.78B	21.23B	20.85B
Stockholders Equity	78.10B	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: Negative
• Last Price: 1608.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1608 is below the 20-day moving average (MA) of 1663.35, below the 50-day MA of 1732.00, and below the 200-day MA of 1716.03, indicating a bearish trend. The MACD of -41.19 indicates Positive momentum. The RSI at 40.23 is Neutral, neither overbought nor oversold. The STOCH value of 22.70 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4527	71 Outperform	¥587.48B	16.06	13.22%	1.68%	18.35%	31.87%
8113	70 Outperform	$1.80T	20.61	10.79%	3.37%	-1.56%	-1.15%
7956	69 Neutral	¥209.84B	22.27	―	4.73%	11.38%	79.21%
8283	66 Neutral	$282.93B	12.91	7.40%	2.46%	3.75%	3.77%
4452	66 Neutral	$3.04T	26.61	11.70%	2.41%	4.62%	47.68%
4912	66 Neutral	¥444.69B	15.44	9.77%	1.77%	2.18%	60.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Pigeon Corporation Corporate Events

Pigeon Corporation Reports Strong Third-Quarter Financial Results for 2025

Pigeon Corporation reported a positive financial performance for the third quarter of the fiscal year ending December 31, 2025, with significant year-on-year growth in net sales, operating income, ordinary income, and net income attributable to owners of the parent. Despite a decline in comprehensive income, the company maintained a stable financial position with a high equity ratio. The forecast for the full fiscal year remains unchanged, indicating confidence in continued growth and stability.

The most recent analyst rating on (JP:7956) stock is a Buy with a Yen1961.00 price target. To see the full list of analyst forecasts on Pigeon Corporation stock, see the JP:7956 Stock Forecast page.