FEED ONE CO (2060) AI Stock Analysis

• Market Cap: ¥38.05B
• Dividend Yield: 4.13%
• Average Volume (3M): 79.70K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.69
• Revenue Growth: -4.75%
• EPS Growth: 4.67%
• Country: JP
• Employees: 902
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Packaged Foods
• EPS (TTM): 32.31
• Shares Outstanding: 38,477,127
• 10 Day Avg. Volume: 94,670
• 30 Day Avg. Volume: 79,696
• PEG Ratio: 1.05
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 6.80
• 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

• Rating: 69 Neutral
• Price Target: ¥1,148.00 ▲(9.23% Upside)

FEED ONE CO's stock score is primarily influenced by its attractive valuation, despite mixed financial performance and bearish technical indicators. The low P/E ratio and high dividend yield are significant positives, while high debt levels and bearish momentum are key risks.

FEED ONE CO Business Overview & Revenue Model

Company Description

Feedone Co., Ltd. procures, produces, processes, and sells mixed, animal, and fishery feeds in Japan and internationally. The company offers livestock feed in mashes, pellets, crumbles, granules, flakes and pellets, and bulky forms for hogs, layers, broiler chickens, and dairy and beef cattle's. It also provides fishery feeds, including mash, granules, crumbles, and dry and extruder pellets, as well as feeds for marine larval fishes. In addition, the company offers feed for laboratory animals, such as mice and rat, rabbit, Guinea-pig, dog, monkey, miniature-pig, and suncus, as well as feed for livestock and poultry, and honeybees; and pet foods comprising foods for small animals, domestic birds, tropical fish and goldfish, small lives, zoos, and animal hospitals. Further, it engages in the provision of foods consisting of pork meat, hen's eggs, and fishes; and other ancillary businesses, such as arm-management consulting, management of veterinary examination and treatment facilities, etc. The company was formerly known as Feed One Holdings Co., Ltd. and changed its name to Feedone Co., Ltd. in October 2015. Feedone Co., Ltd. was incorporated in 2014 and is headquartered in Yokohama, Japan.

How the Company Makes Money

FEED ONE CO generates revenue primarily through the sale of its animal feed products to livestock farmers and agricultural businesses. Their revenue model includes direct sales, bulk orders, and long-term supply contracts with commercial farms. Additionally, the company has developed strategic partnerships with agricultural cooperatives and feed distributors, expanding its market reach. FEED ONE CO also generates income from consulting services, offering expertise in sustainable farming practices and nutritional programs tailored to enhance livestock productivity. These multiple revenue streams contribute significantly to the company's overall earnings.

FEED ONE CO Financial Statement Overview

Summary

FEED ONE CO shows mixed financial performance. While operational efficiency has improved, challenges remain in maintaining consistent revenue growth and profitability. High debt levels and volatile free cash flow pose risks.

Income Statement

FEED ONE CO has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, indicating consistent cost management. However, the net profit margin has seen fluctuations, with a decline in recent years, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with a notable decline in the latest year, which could be a concern for future growth prospects. The EBIT and EBITDA margins have improved, suggesting better operational efficiency, but the overall profitability remains a challenge.

Balance Sheet

The balance sheet of FEED ONE CO shows a moderate level of stability. The debt-to-equity ratio is relatively high, indicating a significant reliance on debt financing, which could pose risks in a rising interest rate environment. The return on equity has been positive, reflecting some level of efficiency in using shareholders' funds. However, the equity ratio is moderate, suggesting a balanced asset structure but with room for improvement in reducing leverage.

Cash Flow

FEED ONE CO's cash flow statement indicates some challenges in cash generation. The operating cash flow to net income ratio has been positive, showing that the company is generating cash from its operations. However, the free cash flow has been volatile, with a significant decline in recent periods, which could impact the company's ability to invest in growth opportunities. The free cash flow to net income ratio is also a concern, highlighting potential issues in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	293.73B	296.05B	313.88B	307.91B	243.20B	214.12B
Gross Profit	31.93B	31.87B	30.72B	22.69B	22.71B	21.96B
EBITDA	10.69B	10.59B	11.00B	5.03B	8.38B	9.73B
Net Income	5.72B	5.39B	5.08B	1.03B	3.66B	4.44B
Balance Sheet
Total Assets	126.15B	124.17B	131.04B	127.91B	108.50B	99.25B
Cash, Cash Equivalents and Short-Term Investments	9.81B	10.34B	10.88B	7.38B	3.50B	2.89B
Total Debt	29.65B	27.95B	32.49B	36.80B	22.71B	21.80B
Total Liabilities	69.67B	68.82B	80.18B	82.60B	63.66B	56.46B
Stockholders Equity	55.75B	54.62B	50.28B	44.77B	44.30B	42.29B
Cash Flow
Free Cash Flow	0.00	4.91B	8.49B	-9.89B	116.00M	701.00M
Operating Cash Flow	0.00	8.57B	11.14B	-7.82B	2.74B	7.74B
Investing Cash Flow	0.00	-3.27B	-2.17B	-1.19B	-952.00M	-5.99B
Financing Cash Flow	0.00	-5.83B	-5.47B	12.88B	-1.17B	-1.55B

FEED ONE CO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1051.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2060, the sentiment is Negative. The current price of 1051 is below the 20-day moving average (MA) of 1052.65, below the 50-day MA of 1093.90, and above the 200-day MA of 949.52, indicating a neutral trend. The MACD of -16.89 indicates Positive momentum. The RSI at 33.18 is Neutral, neither overbought nor oversold. The STOCH value of 7.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2060.

FEED ONE CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2669	―	¥32.26B	22.07	―	1.14%	-1.72%	-19.25%
2612	―	¥34.96B	14.93	―	2.62%	10.50%	-3.82%
2060	―	¥38.05B	6.81	10.87%	4.13%	-4.75%	4.67%
2700	―	¥35.38B	7.44	―	0.92%	22.72%	243.12%
3139	―	¥35.14B	8.43	―	2.88%	6.49%	31.81%
2053	―	¥48.11B	12.68	―	3.47%	-6.79%	-3.70%
Sector *	―	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%

FEED ONE CO Corporate Events

FEED ONE CO., LTD. Reports Increased Profits Despite Revenue Decline

FEED ONE CO., LTD. reported a decrease in sales volume but achieved improved profit margins, leading to increased profits despite lower revenues. The company’s strategic profitability management and the liquidation of a subsidiary contributed to a reduction in tax burden, enhancing overall profitability. The Animal Feed and Aquatic Feed businesses showed profit growth, while the Food Business experienced a decline.

FEED ONE CO., LTD. Reports Improved Profits Despite Sales Dip

FEED ONE CO., LTD. reported a slight decline in net sales for the three months ending June 30, 2025, compared to the previous year. However, the company experienced significant growth in operating and ordinary profits, indicating improved operational efficiency. The forecast for the fiscal year ending March 31, 2026, shows an expected increase in net sales and operating profit, although profit attributable to owners is projected to decrease slightly. This financial performance suggests a stable market position with potential for growth, benefiting stakeholders through increased dividends.