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Kaneko Seeds Co., Ltd. (1376) AI Stock Analysis

JP:1376

Kaneko Seeds Co., Ltd.

(TSE/TYO:1376)

Select Model
Rating:63Neutral
Price Target:JPY 1,610.00â–²(12.98% Upside)
Action:downgraded
Date:10/14/26

The overall score is supported by the company's attractive valuation and fortress balance sheet. However, these strengths are counterbalanced by significant weaknesses in cash flow conversion, thin profit margins, and prevailing short-term technical weakness, which constrain near-term upside potential.

Positive Factors
Conservative balance sheetVery low leverage gives Kaneko Seeds financial flexibility to absorb operating volatility and fund necessary investment without relying heavily on external financing. This conservative structure can support resilience through weaker agricultural cycles and preserve options for future capital allocation.
Negative Factors
Volatile cash generationRepeated negative free cash flow and uneven operating cash generation weaken the reliability of internally funded investment and shareholder returns. This variability may reflect working-capital or investment-cycle effects, but it still makes cash conversion a persistent fundamental risk over the next several quarters.

Kaneko Seeds Co., Ltd. (1376) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:1376-11.32%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 15.63B
Dividend Yield
3.37%
Average Volume (3M)
18.69K
Price to Earnings (P/E)
10.1
Beta (1Y)
0.43
Revenue Growth
4.11%
EPS Growth
13.74%
Country
Japan
Employees
677
Sector
Basic Materials
Sector Strength
61
Industry
Agricultural Inputs

Kaneko Seeds Co., Ltd. Business Overview & Revenue Model

Company Description

Founded in 1895 and headquartered in Maebashi, Japan, Kaneko Seeds Co., Ltd. is a Japanese agricultural enterprise. The company offers a comprehensive range of products, including agricultural seeds, seedlings, and bulbs, as well as flower gardening...

How the Company Makes Money

Kaneko Seeds Co., Ltd. generates revenue primarily by selling agricultural inputs, with its main earnings coming from the distribution and sale of seeds (and related propagation materials such as seedlings, if applicable) to growers and agricultural...

Kaneko Seeds Co., Ltd. Financial Statement Overview

Summary

Kaneko Seeds presents a highly secure, near debt-free balance sheet, which is heavily offset by thin profit margins, a low return on equity (4.9%), and persistently negative free cash flow.

Income Statement

60Neutral

Balance Sheet

85Very Positive

Cash Flow

40Negative
Financial statement breakdown
BreakdownTTMMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue67.89B67.73B64.51B61.60B62.18B60.69B
Gross Profit9.95B9.88B9.54B9.46B9.51B9.49B
EBITDA2.34B2.26B2.15B2.03B2.36B2.22B
Net Income1.56B1.33B1.20B1.18B1.43B1.30B
Balance Sheet
Total Assets50.59B54.19B49.32B49.39B47.40B49.62B
Cash, Cash Equivalents and Short-Term Investments2.25B1.91B1.93B3.60B2.45B5.11B
Total Debt4.85B800.00M89.48M99.35M128.87M111.84M
Total Liabilities23.38B27.44B24.31B24.95B23.89B26.98B
Stockholders Equity27.20B26.75B25.01B24.44B23.51B22.65B
Cash Flow
Free Cash Flow-74.14M-74.14M-1.14B1.56B-1.99B-150.80M
Operating Cash Flow1.92B1.92B212.91M2.24B-1.59B570.53M
Investing Cash Flow-1.99B-1.99B-1.23B-486.10M-499.50M-752.56M
Financing Cash Flow43.52M43.52M-629.07M-614.31M-579.19M-531.39M

Kaneko Seeds Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1425.00

Price Trends

50DMA1550.58Negative
100DMA1524.87Negative
200DMA1479.06Negative

Market Momentum

MACD-35.71Positive
RSI33.65Neutral
STOCH29.31Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1376, the sentiment is Negative. The current price of 1425.00 is below the 20-day moving average (MA) of 1470.90, below the 50-day MA of 1550.58, and below the 200-day MA of 1479.06, indicating a bearish trend. The MACD of -35.71 indicates Positive momentum. The RSI at 33.65 is Neutral, neither overbought nor oversold. The STOCH value of 29.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1376.

Kaneko Seeds Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:1376 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4992JP:499275OutperformJPY 44.94B9.84―2.86%8.16%12.10%
JP:4997JP:499771OutperformJPY 83.84B10.10―3.57%7.34%64.60%
JP:4979JP:497970OutperformJPY 30.55B9.86―2.10%9.61%29.07%
JP:1376JP:137663NeutralJPY 16.76B10.06―3.37%4.11%13.74%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:4996JP:499656NeutralJPY 80.06B73.23―3.73%6.64%-89.22%
JP:4031JP:403155NeutralJPY 9.27B-7.96―1.94%6.44%-308.66%

* Basic Materials Sector Average

Performance Comparison

0%25%50%75%JP:1376JP:4031JP:4979JP:4992JP:4996JP:4997Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:1376 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:1376Kaneko Seeds Co., Ltd.1425.00-198.34-12.22%
JP:4031Katakura & Co-op Agri Corporation1033.0081.208.53%
JP:4979OAT Agrio Co., Ltd.2860.00662.5730.15%
JP:4992Hokko Chemical Industry Co., Ltd.1851.00276.9817.60%
JP:4996Kumiai Chemical Industry Co., Ltd.643.00-23.36-3.51%
JP:4997Nihon Nohyaku Co., Ltd.1064.00217.8025.74%

Kaneko Seeds Co., Ltd. Corporate Events

Kaneko Seeds Posts Sharp Profit Gain and Affirms Full-Year Outlook

Oct 5, 2026

Kaneko Seeds reported modest net sales growth of 1.0% to ¥15,695 million for the three months ended August 31, 2026, while operating profit rose 6.5% and ordinary profit climbed 12.1%. Profit attributable to owners of the parent surged 77.5% yea...

Kaneko Seeds Delivers Strong Profit Growth and Raises Dividend Outlook

Oct 5, 2026

Kaneko Seeds Co., Ltd. reported a moderate increase in net sales to ¥15,695 million for the first quarter ended August 2026, up 1.0% year on year, while significantly boosting profitability. Operating profit rose 6.5% to ¥412 million and pr...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 14, 2026