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KANRO Co., Ltd. (2216) AI Stock Analysis

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JP:2216

KANRO Co., Ltd.

(TSE/TYO:2216)

Select Model
Rating:70Outperform
Price Target:JPY 1,170.00â–²(13.59% Upside)
Action:upgraded
Date:08/06/26

The score is primarily supported by strong financial performance (improving profitability and a conservatively financed balance sheet), with reasonable valuation (moderate P/E and a ~2.9% dividend yield) providing additional support. These positives are partially offset by weak technical signals, with price below major moving averages and negative momentum indicators.

Positive Factors
Conservative balance sheetLow leverage and steady equity expansion give the company durable financial flexibility. With equity nearly doubling 2020–2025 and debt remaining minimal, KANRO can fund product investment, absorb input-cost shocks, sustain dividends, and pursue opportunistic spending without relying on volatile external financing.
Negative Factors
Negative free cash flow in 2025A dip to negative free cash flow reduces near-term financial flexibility and may reflect heavy capex or working-capital strain. If FCF weakness persists it could force trade-offs between growth investments and dividends or increase reliance on external financing, weakening long-term resilience.

KANRO Co., Ltd. (2216) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%JP:2216-25.64%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 42.31B
Dividend Yield
3.11%
Average Volume (3M)
70.88K
Price to Earnings (P/E)
14.2
Beta (1Y)
0.50
Revenue Growth
7.25%
EPS Growth
-11.18%
Country
Japan
Employees
705
Sector
General
Sector Strength
55
Industry
Food Confectioners

KANRO Co., Ltd. Business Overview & Revenue Model

Company Description

Kanro Inc., a Japanese firm headquartered in Tokyo and established in 1950, specializes in the manufacturing and sale of a diverse range of confectionery and food products. Its extensive portfolio includes items such as throat lozenges, various types...

How the Company Makes Money

KANRO makes money primarily by selling confectionery products (especially candy and gummy products) that it develops and manufactures, then distributes through wholesale and retail channels in Japan. Revenue is generated from (1) shipments/sales of b...

KANRO Co., Ltd. Financial Statement Overview

Summary

Strong profitability and balance sheet strength support a high score: revenue rose steadily through 2025 and net income improved materially versus earlier years, while leverage remained very low and equity expanded. The main drag is cash-flow quality/consistency—free cash flow turned slightly negative in 2025 despite solid operating cash flow.

Income Statement

84Very Positive

Balance Sheet

90Very Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue35.50B34.77B31.78B29.02B25.12B21.59B
Gross Profit14.83B14.70B13.00B11.56B9.50B8.18B
EBITDA5.82B6.33B5.86B4.60B3.08B2.37B
Net Income3.06B3.38B3.26B2.46B1.35B879.02M
Balance Sheet
Total Assets31.88B33.61B29.19B25.94B22.40B21.29B
Cash, Cash Equivalents and Short-Term Investments3.10B4.32B5.04B3.82B2.31B2.16B
Total Debt1.12B1.07B120.16M163.76M61.31M561.98M
Total Liabilities12.15B14.62B12.36B11.40B9.85B9.53B
Stockholders Equity19.73B18.98B16.83B14.53B12.56B11.75B
Cash Flow
Free Cash Flow0-113.77M1.99B2.31B1.34B1.53B
Operating Cash Flow05.05B4.40B3.94B2.37B2.62B
Investing Cash Flow0-5.25B-2.17B-1.84B-1.12B-1.00B
Financing Cash Flow0-526.11M-1.01B-585.12M-1.11B-770.89M

KANRO Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1030.00

Price Trends

50DMA1069.80Negative
100DMA1099.60Negative
200DMA1198.22Negative

Market Momentum

MACD-12.06Positive
RSI40.30Neutral
STOCH28.24Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2216, the sentiment is Negative. The current price of 1030.00 is below the 20-day moving average (MA) of 1043.35, below the 50-day MA of 1069.80, and below the 200-day MA of 1198.22, indicating a bearish trend. The MACD of -12.06 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2216.

KANRO Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:2216 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2208JP:220884OutperformJPY 73.03B11.61―1.45%5.66%24.88%
JP:2201JP:220176OutperformJPY 197.20B11.7312.47%2.81%3.34%-0.81%
JP:2216JP:221670OutperformJPY 43.61B14.19―3.11%7.25%-11.18%
JP:2209JP:220966NeutralJPY 29.27B11.75―1.70%4.60%12.15%
JP:2207JP:220758NeutralJPY 54.70B18.03―2.23%3.45%-33.84%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2211JP:221148NeutralJPY 63.23B53.58―1.22%5.76%-38.25%

* General Sector Average

Performance Comparison

-25%0%25%50%75%JP:2216JP:2201JP:2207JP:2208JP:2209JP:2211Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:2216 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2216KANRO Co., Ltd.1030.00-387.35-27.33%
JP:2201Morinaga & Co 2398.50-187.83-7.26%
JP:2207Meito Sangyo Co., Ltd.3360.001276.9861.30%
JP:2208Bourbon Corporation3040.00645.2726.95%
JP:2209Imuraya Group Co., Ltd.2237.00-205.47-8.41%
JP:2211Fujiya Co., Ltd.2453.00-92.94-3.65%

KANRO Co., Ltd. Corporate Events

Kanro Completes Share Buyback and Plans Major Treasury Share Cancellation

Aug 3, 2026

Kanro Inc. has completed the acquisition of 1,100,000 of its common shares for 1.21 billion yen through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction own share repurchase system, representing 2.61% of its outstanding shares excluding treasur...

Kanro Sets Treasury Share Buyback Price at ¥1,100 via ToSTNeT-3

Jul 31, 2026

Kanro Inc. has set the purchase price for its planned acquisition of treasury shares at 1,100 yen per share, matching today’s closing price. The buyback will be executed via the Tokyo Stock Exchange’s off-auction own share repurchase trad...

Kanro Launches Share Buyback and Major Treasury Share Cancellation

Jul 31, 2026

Kanro Inc. has approved the acquisition of up to 1.1 million of its own common shares, representing 2.61% of its outstanding stock, through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction share repurchase system on August 3, 2026. The buyback,...

Kanro Cuts Profit Outlook but Holds Dividend, Bets on Gummy Expansion

Jul 31, 2026

Kanro has revised downward its full-year profit forecasts for the fiscal year ending December 31, 2026, while keeping net sales guidance unchanged, reflecting weaker-than-expected throat drops demand, slower gummy market growth and higher raw materia...

KANRO Publishes Supplementary Financial Results for First Half of 2026

Jul 31, 2026

KANRO Co., Ltd. released supplementary materials detailing its financial results for the six months ended June 30, 2026, including summary figures, income statements, multi-year financial indicators, and market trends. The disclosure, which segments...

Kanro Posts Solid First-Half Earnings but Guides Lower Full-Year Profit

Jul 31, 2026

Kanro Inc. reported consolidated net sales of ¥17,454 million and profit attributable to owners of parent of ¥1,554 million for the six months ended June 30, 2026, with an equity ratio rising to 61.9% on total assets of ¥31,883 million...

Kanro posts solid Q1 profit and reaffirms modest growth, stable dividends for FY2026

May 14, 2026

Kanro Inc. reported consolidated net sales of ¥8.71 billion and profit attributable to owners of parent of ¥993 million for the three months ended March 31, 2026, its first disclosed quarterly figures under the new reporting framework. The...

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: Aug 06, 2026