Iwatsuka Confectionery Co., Ltd. (2221) AI Stock Analysis

• Market Cap: ¥34.64B
• Dividend Yield: 1%
• Average Volume (3M): 13.28K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.25
• Revenue Growth: 13.43%
• EPS Growth: 60.07%
• Country: JP
• Employees: 828
• Sector: Consumer Defensive
• Sector Strength: 76
• Industry: Food Confectioners
• EPS (TTM): 22.11
• Shares Outstanding: 11,990,000
• 10 Day Avg. Volume: 16,520
• 30 Day Avg. Volume: 13,276
• PEG Ratio: -4.04
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 76 Outperform
• Price Target: ¥3,379.00 ▲( 13.16% Upside)

Iwatsuka Confectionery Co., Ltd. scores well due to its strong financial performance, characterized by consistent revenue growth and robust cash flow management. The technical analysis presents challenges with mixed signals, while valuation suggests the stock may be undervalued. The absence of earnings call insights and corporate events did not impact the score.

Iwatsuka Confectionery Co., Ltd. Business Overview & Revenue Model

Company Description

Iwatsuka Confectionery Co., Ltd. is a Japan-based company primarily engaged in the manufacture and sale of rice crackers and other confectionery products. The company operates in the food processing industry and is known for its wide range of rice-based snacks, which include traditional Japanese rice crackers, flavored senbei, and other types of snacks. Iwatsuka Confectionery Co., Ltd. is committed to delivering high-quality and innovative products that cater to the evolving tastes of consumers.

How the Company Makes Money

Iwatsuka Confectionery Co., Ltd. generates revenue primarily through the production and sale of its rice cracker products. The company's revenue model is based on direct sales to retailers and distributors, both domestically in Japan and through export markets. Key revenue streams include the sale of various types of rice crackers, which are distributed through multiple channels, including supermarkets, convenience stores, and online platforms. The company's earnings are also supported by its focus on product innovation and quality assurance, which helps in maintaining consumer loyalty and expanding its market presence. Additionally, Iwatsuka Confectionery may engage in strategic partnerships with retailers and distributors to enhance its product reach and market penetration.

Iwatsuka Confectionery Co., Ltd. Financial Statement Overview

Summary

Iwatsuka Confectionery Co., Ltd. demonstrates solid financial health with strong profitability and revenue growth. The balance sheet is robust with low leverage and high equity. However, gaps in recent cash flow reporting could pose a risk.

Income Statement

Iwatsuka Confectionery Co., Ltd. shows a robust gross profit margin and a significant improvement in net profit margin over the TTM. Revenue growth is evident with a notable increase from the previous periods. However, EBIT margin remains relatively low, indicating room for operational efficiency improvements. The EBITDA margin is strong, showcasing good earnings before accounting for depreciation and amortization.

Balance Sheet

The company exhibits a strong equity base with a favorable debt-to-equity ratio, indicating low leverage risk. Return on Equity is commendable, reflecting effective management of shareholders' funds. The equity ratio is high, signifying financial stability and low reliance on debt financing.

Cash Flow

Cash flow analysis reveals stability in operating cash flows, but the TTM shows no reported values, indicating a potential reporting lapse or operational cash management issue. Free cash flow has shown growth, aligning with improved net income. The lack of current operating cash flow data presents a risk for ongoing liquidity assessment.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
24.22B	22.00B	20.39B	18.04B	22.17B	22.84B
	Gross Profit
6.68B	5.76B	4.66B	4.26B	8.54B	8.63B
	EBIT
657.72M	603.26M	-213.56M	-326.86M	181.14M	174.00M
	EBITDA
1.85B	4.26B	6.93B	2.49B	3.71B	1.31B
	Net Income Common Stockholders
2.71B	1.96B	3.97B	828.07M	2.01B	1.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.86B	2.84B	4.54B	1.78B	1.27B	1.76B
	Total Assets
90.21B	85.75B	83.56B	96.28B	76.37B	70.14B
	Total Debt
504.00M	806.00M	1.21B	2.01B	2.02B	166.62M
	Net Debt
-2.36B	-2.04B	-3.33B	230.32M	745.08M	-1.59B
	Total Liabilities
22.43B	21.95B	21.49B	26.59B	20.32B	17.86B
	Stockholders Equity
67.78B	63.81B	62.06B	69.69B	56.05B	52.27B
Cash Flow		Free Cash Flow
0.00	842.78M	3.74B	662.41M	-2.43B	278.75M
	Operating Cash Flow
0.00	2.76B	5.34B	2.38B	3.57B	2.18B
	Investing Cash Flow
0.00	-1.84B	-1.56B	-1.76B	-5.83B	-1.94B
	Financing Cash Flow
0.00	-2.61B	-1.02B	-108.53M	1.77B	-309.38M

Iwatsuka Confectionery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2986.00
• 50DMA: Positive
• 100DMA: Positive
• 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:2221, the sentiment is Neutral. The current price of 2986 is below the 20-day moving average (MA) of 3191.05, above the 50-day MA of 2980.51, and above the 200-day MA of 2674.87, indicating a neutral trend. The MACD of -1.86 indicates Positive momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 3.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2221.

Iwatsuka Confectionery Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2216	77 Outperform	¥54.50B	15.71		2.51%	11.18%	28.19%
2221	76 Outperform	¥34.64B	10.68		1.00%	13.43%	60.07%
2207	73 Outperform	¥34.14B	7.24		1.73%	15.08%	―
2211	67 Neutral	¥61.04B	37.63		1.27%	3.75%	44.95%
2217	66 Neutral	¥35.66B	24.53		1.62%	3.10%	-15.65%
Sector *	65 Neutral	$8.84B	14.90	4.69%	203.33%	3.49%	-1.84%
2209	62 Neutral	¥31.66B	14.38		1.49%	7.17%	45.25%