Taiyo Bussan Kaisha, Ltd. (9941) AI Stock Analysis

• Market Cap: ¥1.61B
• Dividend Yield: N/A
• Average Volume (3M): 17.13K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.19
• Revenue Growth: -3.50%
• EPS Growth: -8.42%
• Country: JP
• Employees: 31
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 18.37
• Shares Outstanding: 1,934,019
• 10 Day Avg. Volume: 41,030
• 30 Day Avg. Volume: 17,133
• 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: ¥880.00
• Price Target Upside: 5.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥880.00 ▲(5.77% Upside)

The overall stock score reflects significant financial performance challenges, including declining revenues and cash flow issues, combined with weak technical indicators suggesting bearish momentum. However, the stock's relatively low P/E ratio indicates potential undervaluation, providing some upside potential if financial and market conditions improve.

Taiyo Bussan Kaisha, Ltd. Business Overview & Revenue Model

Company Description

Taiyo Bussan Kaisha, Ltd. (9941) is a Japanese company primarily engaged in the distribution and sale of a wide range of food products. The company operates within the food distribution industry, providing an array of processed foods, fresh produce, and other food-related products to various customers including retailers, restaurants, and food service operators. Taiyo Bussan Kaisha is known for its extensive supply chain network and commitment to delivering high-quality and diverse food items to meet the needs of a broad customer base.

How the Company Makes Money

Taiyo Bussan Kaisha, Ltd. generates revenue through the distribution and sale of its food products. The company earns money by purchasing food products from manufacturers or producers and selling them to its clients, which include supermarkets, restaurants, and other food service providers. It leverages its supply chain and distribution network to efficiently deliver products, ensuring availability and meeting customer demands. The company may also engage in partnerships with food manufacturers or suppliers to enhance its product offerings and secure favorable pricing, thereby improving its profit margins. Seasonal demand, product diversification, and customer relationships are significant factors contributing to its financial performance.

Taiyo Bussan Kaisha, Ltd. Financial Statement Overview

Summary

Taiyo Bussan Kaisha, Ltd. faces moderate growth challenges with declining revenues and a slight decrease in profitability margins. While the return on equity is strong, high leverage poses financial risk, and a low equity ratio suggests potential vulnerability. The cash flow situation needs improvement, as operational cash flows have recently stagnated. Overall, the company should focus on stabilizing revenue growth and improving cash flow management to strengthen its financial health.

Income Statement

The company shows a consistent gross profit margin over the TTM (3.70%) and the previous year (3.96%). However, the net profit margin slightly declined from 0.87% last year to 0.78% TTM, indicating some pressure on profitability. Revenue has fluctuated, with a 6.81% decline in the most recent TTM period, suggesting challenges in sustaining sales growth. EBIT and EBITDA margins are modest but stable.

Balance Sheet

The debt-to-equity ratio is high at 6.04, indicating significant leverage, which poses financial risk. The return on equity (ROE) improved to 17.71% TTM from 20.28% the previous year, demonstrating effective use of equity. However, the equity ratio remains low at 11.23%, suggesting potential vulnerability in financial stability.

Cash Flow

The company experienced volatility in cash flows, with operating cash flow and free cash flow turning zero in the TTM period from positive values. The free cash flow to net income ratio is unavailable due to zero free cash flow, indicating potential operational challenges. The company needs to stabilize cash flows to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.44B	18.76B	20.02B	21.05B	16.42B	14.80B
Gross Profit	783.28M	743.44M	612.46M	749.00M	642.45M	222.97M
EBITDA	294.93M	273.99M	190.24M	215.96M	218.13M	-307.18M
Net Income	182.10M	162.80M	116.46M	133.02M	113.37M	-391.33M
Balance Sheet
Total Assets	7.51B	7.99B	7.67B	8.24B	7.59B	7.60B
Cash, Cash Equivalents and Short-Term Investments	460.73M	346.86M	673.15M	320.13M	1.88B	1.47B
Total Debt	5.26B	5.41B	5.77B	5.95B	6.15B	6.54B
Total Liabilities	6.60B	7.19B	6.98B	7.67B	7.48B	7.76B
Stockholders Equity	913.50M	802.66M	688.05M	564.70M	103.91M	-158.32M
Cash Flow
Free Cash Flow	0.00	34.53M	602.10M	-1.68B	631.88M	-561.47M
Operating Cash Flow	0.00	51.46M	602.77M	-1.68B	648.19M	-547.12M
Investing Cash Flow	0.00	-20.23M	-71.42M	-5.77M	6.07M	-21.64M
Financing Cash Flow	0.00	-356.90M	-180.37M	121.19M	-243.07M	-806.86M

Taiyo Bussan Kaisha, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 832.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9941, the sentiment is Negative. The current price of 832 is below the 20-day moving average (MA) of 985.90, below the 50-day MA of 998.96, and below the 200-day MA of 938.38, indicating a bearish trend. The MACD of -22.22 indicates Positive momentum. The RSI at 11.32 is Positive, neither overbought nor oversold. The STOCH value of 28.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9941.

Taiyo Bussan Kaisha, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7687	75 Outperform	¥3.56B	12.90	―	1.47%	14.39%	22.21%
7538	69 Neutral	¥4.62B	4.26	10.38%	1.73%	2.56%	16.26%
7114	67 Neutral	¥4.59B	48.66	6.23%	―	8.54%	-59.20%
8039	60 Neutral	¥7.95B	22.44	4.39%	0.99%	5.89%	82.20%
9941	55 Neutral	¥1.61B	9.66	―	―	-3.50%	-8.42%
2683	47 Neutral	¥2.56B	1,170.30	3.58%	1.00%	-0.03%	-97.12%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%