WELLNEO SUGAR Co.Ltd. (2117) AI Stock Analysis

1 Followers

WELLNEO SUGAR Co.Ltd.

(TSE/TYO:2117)

Select Model

Rating:74Outperform

Price Target:JPY 3,043.00▲(10.86% Upside)

Action:reiterated

Date:11/08/26

The score is driven primarily by strong financial performance (improved margins, low leverage, and robust/free-cash-flow recovery and growth). Valuation is also favorable with a moderate P/E and high dividend yield. These positives are partially offset by softer technical momentum (below short-term moving averages and negative MACD) and a near-term top-line slowdown (slight TTM revenue contraction).

Positive Factors

Improved ProfitabilityThe sharp improvement in net and EBIT margins indicates stronger earnings power than in 2023. If maintained, better profitability can support internal investment, improve resilience across sugar-cycle conditions, and provide a more durable base for future cash generation.

Negative Factors

Recent Revenue ContractionThe latest TTM revenue decline shows that stronger margins have not been accompanied by continuing top-line expansion. A prolonged slowdown could limit operating leverage, constrain future earnings growth, and make the company more dependent on sustaining profitability improvements.

WELLNEO SUGAR Co.Ltd. (2117) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 90.69B
Dividend Yield: 4.55%
Average Volume (3M): 26.80K
Price to Earnings (P/E): 12.5
Beta (1Y): 0.39
Revenue Growth: 4.35%
EPS Growth: 27.32%
Country: Japan
Employees: 755
Sector: Consumer Defensive
Sector Strength: 62
Industry: Agricultural - Commodities/Milling

WELLNEO SUGAR Co.Ltd. Business Overview & Revenue Model

Company Description

Established in 1944 and headquartered in Tokyo, Japan, Nissin Sugar Co., Ltd. is primarily involved in the production and distribution of various sugar and other food items, mainly within its home country. Its comprehensive sugar range encompasses wh...

WELLNEO SUGAR Co.Ltd. Financial Statement Overview

Summary

Financials are a clear strength: profitability improved materially (TTM net margin ~5.7%, EBIT margin ~9.6%) versus weak 2023 levels, free cash flow is positive and up strongly (~21.5%) with solid conversion (FCF to net income ~1.0), and leverage remains low (debt-to-equity ~0.15). Key watch items are the slight TTM revenue decline (~-1.4%), a rise in debt versus the latest annual period, and only moderate operating cash flow coverage of total debt (less than half).

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	111.35B	112.90B	97.07B	92.19B	58.35B	46.06B
Gross Profit	24.26B	23.78B	19.14B	15.88B	8.90B	7.84B
EBITDA	13.92B	13.45B	10.86B	8.14B	3.57B	3.67B
Net Income	6.84B	6.47B	5.57B	5.52B	1.06B	1.72B
Balance Sheet
Total Assets	108.01B	105.83B	110.35B	95.92B	93.57B	61.13B
Cash, Cash Equivalents and Short-Term Investments	10.37B	10.46B	15.45B	12.51B	11.26B	7.65B
Total Debt	15.73B	11.40B	17.76B	10.52B	12.61B	5.15B
Total Liabilities	30.52B	28.63B	35.99B	24.81B	25.30B	12.22B
Stockholders Equity	77.49B	77.20B	72.89B	71.11B	68.26B	48.90B
Cash Flow
Free Cash Flow	13.02B	10.72B	6.07B	4.87B	-2.21B	1.42B
Operating Cash Flow	12.62B	10.76B	8.93B	6.66B	-1.63B	2.18B
Investing Cash Flow	-5.07B	-6.10B	-8.98B	-822.00M	4.61B	-651.00M
Financing Cash Flow	-12.53B	-9.64B	2.99B	-4.59B	-3.68B	-2.40B

WELLNEO SUGAR Co.Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2745.00

Price Trends

50DMA2764.81Negative

100DMA2712.24Positive

200DMA2712.58Positive

Market Momentum

MACD-3.05Positive

RSI48.16Neutral

STOCH38.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2117, the sentiment is Negative. The current price of 2745.00 is below the 20-day moving average (MA) of 2768.95, below the 50-day MA of 2764.81, and above the 200-day MA of 2712.58, indicating a neutral trend. The MACD of -3.05 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 38.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2117.

WELLNEO SUGAR Co.Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:2117 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2114	85Outperform	JPY 31.80B	9.51	―	2.98%	0.14%	27.23%
JP:2112	79Outperform	JPY 11.73B	4.21	―	6.45%	-0.34%	-6.86%
JP:2117	74Outperform	JPY 88.96B	12.49	―	4.55%	4.35%	27.32%
JP:2108	67Neutral	JPY 63.86B	12.57	―	3.02%	-2.69%	―
JP:2109	65Neutral	JPY 111.14B	31.94	―	3.82%	-2.45%	-36.85%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

* Consumer Defensive Sector Average

Performance Comparison

JP:2117 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2117	WELLNEO SUGAR Co.Ltd.	2745.00	160.36	6.20%
JP:2108	Nippon Beet Sugar Manufacturing Co., Ltd.	1752.00	687.83	64.64%
JP:2109	Mitsui DM Sugar Holdings Co.Ltd	3535.00	432.06	13.92%
JP:2112	Ensuiko Sugar Refining Co., Ltd.	434.00	-48.76	-10.10%
JP:2114	Fuji Nihon Seito Corporation	620.00	106.36	20.71%

WELLNEO SUGAR Co.Ltd. Corporate Events

WELLNEO SUGAR completes ¥27.8m share buyback on TSE

Oct 5, 2026

WELLNEO SUGAR Co., Ltd. has completed a share buyback authorized by its board on September 29, 2026, acquiring 9,900 common shares on the Tokyo Stock Exchange between October 1 and 2 for a total of ¥27.8 million. The repurchased shares represent abou...

WELLNEO Sugar to Buy Back Shares for Employee Stock Plan Ahead of Merger

Sep 29, 2026

WELLNEO SUGAR Co., Ltd. has approved the acquisition of up to 9,900 common shares as treasury stock via market purchases on the Tokyo Stock Exchange from October 1 to 14, 2026. The buyback, capped at 31 million yen, represents around 0.03 percent of...

WELLNEO SUGAR To Dispose Treasury Shares for Employee Stock Ownership Plan

Sep 29, 2026

WELLNEO SUGAR Co., Ltd. has approved the disposal of up to 12,000 treasury shares via a third-party allotment to its Employee Stock Ownership Association at a price of 2,859 yen per share, for a maximum total of about 34.3 million yen. The shares wil...

WELLNEO SUGAR to Divest Stake in Tsuruya Chemical Industries

Aug 25, 2026

WELLNEO SUGAR Co., Ltd. has decided to transfer all of its shares in equity-method affiliate Tsuruya Chemical Industries Co., Ltd. back to Tsuruya Chemical Industries. The move follows a review of group achievements and changes in the business enviro...

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: Nov 07, 2026

WELLNEO SUGAR Co.Ltd. AI Stock Analysis