Pigeon Corporation (7956) AI Stock Analysis

• Market Cap: ¥216.36B
• Dividend Yield: 4.2%
• Average Volume (3M): 947.69K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.50
• Revenue Growth: 11.68%
• EPS Growth: 27.65%
• Country: JP
• Employees: 3,066
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Household & Personal Products
• EPS (TTM): 19.49
• Shares Outstanding: 121,653,490
• 10 Day Avg. Volume: 1,182,090
• 30 Day Avg. Volume: 947,693
• PEG Ratio: 0.49
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,856.67
• Price Target Upside: 2.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: ¥1,924.00 ▲(6.39%Upside)

Pigeon Corporation's strong financial performance, characterized by solid growth, profitability, and cash generation, is a key strength driving the overall score. However, technical indicators suggest cautious market momentum, while the valuation is moderate with a favorable dividend yield. The combination of these factors results in a solid overall stock score.

Pigeon Corporation Business Overview & Revenue Model

Company Description

Pigeon Corporation (7956) is a leading Japanese company specializing in the production and distribution of baby and child care products. Founded in 1957, the company operates primarily in the baby care sector, offering a comprehensive range of products including nursing bottles, nipples, breast pumps, skincare products, and other maternity-related items. Pigeon is renowned for its commitment to quality and safety, which has solidified its reputation as a trusted brand among parents and caregivers globally.

How the Company Makes Money

Pigeon Corporation generates revenue primarily through the sale of its baby and child care products. The company operates a diverse product portfolio that caters to the needs of infants, toddlers, and their parents. Key revenue streams include the sale of nursing bottles, nipples, breast pumps, and skincare products. Pigeon also benefits from significant market presence in both domestic and international markets, leveraging strong brand recognition and distribution networks. Additionally, the company may engage in strategic partnerships and collaborations to enhance its product offerings and expand its market reach, contributing to its overall revenue growth.

Pigeon Corporation Financial Statement Overview

Summary

Pigeon Corporation exhibits strong financial health across all verticals. The income statement indicates robust growth and profitability, with a consistent revenue growth rate and improved margins. The balance sheet reflects low leverage and strong equity, indicating financial stability. Cash flow analysis demonstrates excellent cash generation, highlighting the company's efficient operations and 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
104.17B	94.46B	94.92B	93.08B	99.37B
	Gross Profit
51.37B	45.45B	44.83B	44.07B	49.92B
	EBIT
12.14B	10.73B	12.20B	13.34B	15.32B
	EBITDA
17.82B	16.33B	17.14B	17.50B	19.29B
	Net Income Common Stockholders
8.37B	7.42B	8.58B	8.79B	10.64B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.20B	34.36B	34.28B	35.22B	37.16B
	Total Assets
108.31B	100.44B	101.73B	98.04B	93.47B
	Total Debt
1.77B	1.90B	2.06B	1.94B	1.14B
	Net Debt
-37.43B	-32.46B	-32.23B	-33.28B	-36.02B
	Total Liabilities
23.70B	19.35B	21.78B	21.23B	20.85B
	Stockholders Equity
81.14B	77.58B	76.69B	73.88B	69.90B
Cash Flow		Free Cash Flow
12.21B	8.87B	7.65B	5.00B	14.58B
	Operating Cash Flow
14.28B	14.52B	13.21B	10.89B	18.40B
	Investing Cash Flow
-1.14B	-5.47B	-5.66B	-5.59B	-3.81B
	Financing Cash Flow
-10.64B	-10.26B	-9.67B	-8.69B	-9.23B

Pigeon Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1808.50
• 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:7956, the sentiment is Neutral. The current price of 1808.5 is below the 20-day moving average (MA) of 1814.60, above the 50-day MA of 1768.12, and above the 200-day MA of 1587.48, indicating a neutral trend. The MACD of 22.81 indicates Positive momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 27.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7956.

Pigeon Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4452	80 Outperform	$3.10T	27.17	11.12%	2.13%	6.57%	105.73%
8283	79 Outperform	$256.59B	11.24	7.98%	2.45%	3.14%	11.59%
7956	75 Outperform	¥216.36B	24.59		4.20%	11.68%	27.65%
8113	65 Neutral	¥2.08T	22.56	11.87%	1.21%	2.40%	2.53%
Sector *	65 Neutral	$8.88B	15.01	4.76%	203.76%	3.54%	-2.49%
4527	65 Neutral	$460.60B	14.58	12.05%	1.73%	13.95%	0.37%
4912	59 Neutral	$419.72B	19.72	7.58%	1.73%	2.30%	33.87%

Pigeon Corporation Corporate Events

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.