Shoei Foods Corporation (8079) AI Stock Analysis

• Market Cap: ¥69.68B
• Dividend Yield: 1.3%
• Average Volume (3M): 28.31K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.58
• Revenue Growth: 6.84%
• EPS Growth: -13.41%
• Country: JP
• Employees: 1,535
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Food Distribution
• EPS (TTM): 74.45
• Shares Outstanding: 17,100,000
• 10 Day Avg. Volume: 27,390
• 30 Day Avg. Volume: 28,306
• PEG Ratio: -7.26
• Price to Book (P/B): 1.27
• 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: ¥4,331.00
• Price Target Upside: 3.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥4,451.00 ▲(6.36%Upside)

Shoei Foods Corporation's strong financial performance is the most significant factor, reflecting robust revenue growth, profitability, and a solid balance sheet. Technical analysis presents a mixed outlook, with stability in short-term trends but potential concerns in momentum indicators. The stock's moderate valuation and low dividend yield slightly detract from its attractiveness.

Shoei Foods Corporation Business Overview & Revenue Model

Company Description

Shoei Foods Corporation is a Japanese company primarily engaged in the import, export, and domestic distribution of food products. The company operates in various sectors, including the processing and sale of nuts, dried fruits, and other food ingredients. Shoei Foods has a diverse portfolio of products that cater to both consumer markets and industrial food manufacturers. Its core services include the procurement and supply of high-quality food products sourced from different parts of the world.

How the Company Makes Money

Shoei Foods Corporation generates revenue through the import and export of food products, focusing on the distribution of nuts, dried fruits, and related food ingredients. The company's revenue streams include selling these products to wholesalers, retailers, and industrial food manufacturers both domestically and internationally. Shoei Foods leverages its global supply chain to access quality products and partners with various suppliers to maintain a diverse product offering. Additionally, the company may engage in value-added services such as processing and packaging, which further contribute to its earnings.

Shoei Foods Corporation Financial Statement Overview

Summary

Shoei Foods Corporation demonstrates robust financial health with consistent revenue growth of 5.14% and a healthy gross profit margin of 16.16%. The balance sheet reflects a solid equity base with an equity ratio of 59.13% and a conservative debt-to-equity ratio of 0.33. However, there is room for improvement in ROE and free cash flow conversion.

Income Statement

Shoei Foods Corporation displayed strong revenue growth of 5.14% from 2023 to 2024, coupled with a healthy gross profit margin of 16.16%. The net profit margin improved to 2.75%, indicating effective cost management and profitability. The EBIT and EBITDA margins were 4.21% and 6.90% respectively, showing stable operational efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 59.13%, suggesting financial stability. The debt-to-equity ratio of 0.33 indicates a conservative approach to debt management. However, the return on equity (ROE) at 5.96% suggests room for improvement in generating returns for shareholders.

Cash Flow

Shoei Foods Corporation's free cash flow showed growth, reaching ¥497 million, with a solid operating cash flow to net income ratio of 0.97, reflecting strong cash generation capabilities. However, the free cash flow to net income ratio is lower at 0.16, indicating potential constraints in cash conversion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.21B	109.59B	103.19B	99.63B	100.57B
Gross Profit	18.62B	17.55B	16.60B	16.57B	16.17B
EBITDA	7.96B	7.15B	7.18B	7.12B	6.60B
Net Income	3.17B	2.81B	2.79B	2.79B	2.80B
Balance Sheet
Total Assets	89.91B	87.45B	82.85B	78.47B	76.58B
Cash, Cash Equivalents and Short-Term Investments	11.19B	12.95B	7.87B	9.86B	9.43B
Total Debt	17.49B	18.71B	17.09B	17.72B	18.84B
Total Liabilities	35.74B	35.42B	33.69B	34.12B	35.43B
Stockholders Equity	53.17B	51.11B	48.27B	43.52B	40.36B
Cash Flow
Free Cash Flow	497.00M	4.39B	-1.08B	2.25B	176.32M
Operating Cash Flow	3.09B	6.33B	834.20M	6.31B	5.79B
Investing Cash Flow	-2.63B	-2.00B	-1.82B	-4.04B	-5.74B
Financing Cash Flow	-2.08B	681.31M	-1.76B	-2.13B	-1.72B

Shoei Foods Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4185.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8079, the sentiment is Positive. The current price of 4185 is above the 20-day moving average (MA) of 4003.75, above the 50-day MA of 3993.80, and above the 200-day MA of 4121.85, indicating a bullish trend. The MACD of 46.91 indicates Negative momentum. The RSI at 74.72 is Negative, neither overbought nor oversold. The STOCH value of 91.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8079.

Shoei Foods Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7520	82 Outperform	¥27.98B	6.65		2.43%	5.58%	10.61%
2692	77 Outperform	¥124.33B	15.16		1.43%	4.00%	24.34%
8079	72 Outperform	¥69.68B	23.62		1.30%	6.84%	-13.41%
8142	70 Outperform	¥33.72B	7.48		3.92%	-0.64%	17.19%
Sector *	65 Neutral	$27.20B	15.36	-4.27%	3.20%	1.01%	3.58%
2294	61 Neutral	¥27.77B	37.10		3.20%	-9.02%	-39.11%

Shoei Foods Corporation Corporate Events

Shoei Foods Reports Mixed Financial Results with Increased Dividends

Shoei Foods Corporation reported its consolidated financial results for the six months ending April 30, 2025, showing a 10.1% increase in net sales compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 5.7%, 7.4%, and 11.1% respectively. Despite these declines, the company announced an increase in dividends for the fiscal year ending October 31, 2025, indicating a positive outlook for shareholders.

Shoei Foods Completes Share Repurchase to Boost Capital Efficiency

Shoei Foods Corporation has completed the repurchase of 280,000 of its own shares, amounting to 1,122,800,000 yen, through the Tokyo Stock Exchange’s off-auction trading system. This move is part of the company’s strategy to enhance capital efficiency and strengthen shareholder returns, reflecting its commitment to adapting to market conditions and optimizing its financial operations.

Shoei Foods Corporation Announces Share Repurchase Plan

Shoei Foods Corporation has announced a strategic decision to repurchase up to 300,000 of its own shares, representing 1.78% of its total issued shares, to enhance capital efficiency and bolster shareholder returns. This move, executed through the Tokyo Stock Exchange’s off-auction trading system, reflects the company’s adaptive capital policy in response to evolving business conditions.

Shoei Foods Revises Earnings Forecast Amid Legal Costs

Shoei Foods Corporation announced a revision of its consolidated earnings forecast for the fiscal year ending October 31, 2025, due to differences between projected and actual financial results for the first half of the year. Despite exceeding initial sales forecasts by over 10% due to price increases, the company reported a decrease in profit attributable to owners of the parent by 11.1%, largely due to extraordinary losses from a labor lawsuit in the United States. The company has adjusted its full-year forecast to reflect these developments.