Yonkyu Co., Ltd. (9955) AI Stock Analysis

• Market Cap: ¥37.81B
• Dividend Yield: 0.72%
• Average Volume (3M): 9.12K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.17
• Revenue Growth: -2.02%
• EPS Growth: 103.08%
• Country: JP
• Employees: 126
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 48.76
• Shares Outstanding: 12,290,862
• 10 Day Avg. Volume: 3,860
• 30 Day Avg. Volume: 9,123
• PEG Ratio: -1.37
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 25.30
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥3,309.00 ▲(15.94% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Yonkyu Co., Ltd.'s overall stock score is driven primarily by its stable financial performance and positive technical indicators. However, the negative revenue growth and high P/E ratio suggest potential risks. The strong balance sheet provides some financial stability, but the valuation concerns and modest dividend yield limit the attractiveness of the stock.

Positive Factors

Low Leverage / Strong Equity Base

Yonkyu's very low debt-to-equity and high equity ratio provide durable financial flexibility. Low leverage reduces interest burden and insolvency risk, enabling the company to fund operations or opportunistic investments through equity or cash without stressing covenant limits over the medium term.

Improved Free Cash Flow

The shift to positive free cash flow and an operating cash flow to net income ratio above 1 indicates better cash generation. Sustained cash conversion supports capex funding, working capital needs and optional shareholder returns, strengthening operational self-funding capacity.

Stable Operational Margins

Consistent gross and EBITDA margins signal effective cost management and operational control in its agricultural products business. Durable margin levels underpin steady cashflows and competitive resilience, allowing the firm to absorb input cost swings and maintain service continuity.

Negative Factors

Negative Revenue Trend

A declining top line suggests weakening demand, pricing pressure, or loss of share. Persistent revenue contraction undermines economies of scale, limits reinvestment capacity and makes margin maintenance harder, posing a structural headwind to sustainable earnings growth.

Low Return on Equity

An ROE around 3.6% indicates modest profitability on shareholders' capital. Low long-term ROE constrains the company's ability to generate attractive shareholder returns and suggests limited internal capital efficiency for funding growth without external capital or structural improvements.

Volatile Free Cash Flow

While FCF turned positive, the noted volatility signals inconsistency in cash conversion from operations or uneven capex timing. This unpredictability complicates long-term planning for capex, dividends or debt reduction and raises execution risk for strategic initiatives.

Yonkyu Co., Ltd. Business Overview & Revenue Model

Company Description

The Yonkyu Co.,Ltd., together with its subsidiaries, operates in the fishery industry in Japan. It operates through Fresh Fish Sales Business, Food and Feed Sales Business, and Other Business segments. The company engages in the sale of fresh fish, and wild fish and yellowtail fillets; procurement and sale of natural juvenile fish to aquaculture companies; production and sale of artificially hatched fry to aquaculture companies; and farming and sales of tuna and eels. It also sells live feed, compound feed, moist pellets, etc. for farmed fish to aquaculture companies. In addition, the company provides general cargo transportation services. The Yonkyu Co.,Ltd. was founded in 1961 and is headquartered in Uwajima, Japan.

How the Company Makes Money

Yonkyu Co., Ltd. generates revenue through the sale of its chemical products and materials to a diverse range of industries. Key revenue streams include the production of specialty chemicals for automotive applications, electronic materials, and industrial coatings. The company often enters into long-term contracts with major manufacturers, ensuring a steady demand for its products. Additionally, Yonkyu may engage in strategic partnerships with other firms to develop new technologies or expand its market reach, further enhancing its revenue potential. The focus on research and development allows the company to innovate and stay competitive, driving sales growth through the introduction of new and improved products.

Yonkyu Co., Ltd. Financial Statement Overview

Summary

Yonkyu Co., Ltd. displays a mixed financial performance. While profitability and operational efficiency are stable, negative revenue growth poses a challenge. The strong balance sheet with low leverage provides a cushion against financial risks, but the company needs to enhance its growth trajectory to improve overall financial health. Cash flow management has improved, yet volatility remains a concern that requires monitoring.

Income Statement

Yonkyu Co., Ltd. shows moderate profitability with a gross profit margin of 11.9% and a net profit margin of 3.2% for the latest year, indicating efficient cost management. However, the revenue growth rate has been negative, declining by 0.5% from the previous year, which raises concerns about the company's ability to grow its top line. The EBIT margin of 3.4% and EBITDA margin of 6.2% suggest stable operational efficiency, though they have declined compared to prior years.

Balance Sheet

The company maintains a strong financial position with a debt-to-equity ratio of 0.19, indicating low leverage and a solid equity base. The return on equity (ROE) stands at 3.6%, which is relatively low and suggests limited profitability in relation to equity. The equity ratio of 74.2% underscores a strong balance sheet with a high proportion of equity in the capital structure, enhancing financial stability.

Cash Flow

Yonkyu Co., Ltd. has shown significant improvement in free cash flow, turning positive to JPY 1.04 billion from a deficit in the previous year, indicating improved cash management. The operating cash flow to net income ratio of 1.6 reflects adequate cash generation from operations relative to net income. Nonetheless, free cash flow growth has been volatile, which might signal inconsistencies in capital expenditures or operational cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	43.54B	44.89B	45.13B	40.23B	35.21B	36.39B
Gross Profit	5.08B	5.32B	5.91B	6.14B	5.65B	5.86B
EBITDA	2.28B	2.79B	2.93B	3.55B	3.38B	2.42B
Net Income	1.15B	1.42B	1.63B	2.31B	2.00B	1.21B
Balance Sheet
Total Assets	51.82B	52.34B	51.38B	47.27B	42.85B	38.91B
Cash, Cash Equivalents and Short-Term Investments	20.43B	20.68B	20.00B	21.42B	21.03B	19.93B
Total Debt	7.22B	7.28B	7.27B	6.77B	6.34B	5.22B
Total Liabilities	12.98B	13.48B	14.25B	12.36B	11.22B	9.22B
Stockholders Equity	38.83B	38.85B	37.12B	34.90B	31.63B	29.69B
Cash Flow
Free Cash Flow	0.00	1.04B	-1.68B	685.32M	549.54M	3.93B
Operating Cash Flow	0.00	2.23B	-60.60M	2.50B	2.03B	4.29B
Investing Cash Flow	0.00	-1.31B	982.48M	-2.45B	-1.88B	-1.02B
Financing Cash Flow	0.00	-233.82M	253.50M	183.08M	883.41M	1.18B

Yonkyu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2854.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9955, the sentiment is Positive. The current price of 2854 is below the 20-day moving average (MA) of 3085.25, below the 50-day MA of 3018.88, and above the 200-day MA of 2613.20, indicating a neutral trend. The MACD of 11.28 indicates Positive momentum. The RSI at 55.40 is Neutral, neither overbought nor oversold. The STOCH value of 93.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9955.

Yonkyu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1384	78 Outperform	¥27.15B	8.10	―	2.45%	21.60%	116.17%
1333	76 Outperform	¥240.52B	13.67	9.42%	2.84%	2.63%	-7.81%
1381	72 Outperform	¥22.35B	10.00	―	2.81%	5.47%	44.78%
8041	72 Outperform	¥25.51B	4.95	―	2.46%	5.27%	9.51%
9955	65 Neutral	¥37.81B	10.39	―	0.72%	-2.02%	103.08%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2874	56 Neutral	¥84.07B	27.62	―	1.86%	4.41%	-41.71%

Yonkyu Co., Ltd. Corporate Events

Yonkyu Posts Profit Surge on Flat Sales and Strengthens Balance Sheet

Yonkyu Co., Ltd. reported largely flat net sales of ¥34.2 billion for the quarter ended December 2025, down 0.2% year-on-year, but achieved an 11.5% increase in operating profit to ¥1.32 billion, reflecting improved profitability despite stable revenue. Ordinary profit declined 4.2% to ¥1.58 billion, yet profit attributable to owners of parent surged 197.6% to ¥3.35 billion, sharply boosting basic earnings per share to ¥273.10 and indicating significant bottom-line improvement, likely influenced by non-operating factors. The company’s financial position strengthened, with total assets rising to ¥57.1 billion and net assets to ¥40.2 billion, though its capital adequacy ratio dipped slightly to 70.4%, and net assets per share increased to ¥3,278.91, underscoring a solid balance sheet. Dividend per share for the second quarter remained at ¥0.00, suggesting a continued conservative or retained-earnings-focused capital policy despite the strong profit rebound.

The most recent analyst rating on (JP:9955) stock is a Hold with a Yen3335.00 price target. To see the full list of analyst forecasts on Yonkyu Co., Ltd. stock, see the JP:9955 Stock Forecast page.