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

Iwatsuka Confectionery Co., Ltd.

(TSE/TYO:2221)

Select Model

Rating:66.5Neutral

Price Target:JPY 3,302.00▲(9.88% Upside)

Action:reiterated

Date:08/17/26

The overall score reflects a balance of strengths in the company’s conservative balance sheet and stable revenue base against softer net income and free cash flow trends, making financial stability the primary positive factor. Technicals are neutral with limited momentum, suggesting no strong trend catalyst in the near term. Valuation appears fair relative to the business quality and low beta, offering modest income but not a pronounced value or growth premium.

Positive Factors

Strong balance sheet with very low leverageDebt near-zero and a large equity base give the company durable financial flexibility in a low-margin consumer staples business. This conservatism supports resilience to input-cost shocks, enables steady working-capital management, and preserves capacity to fund capex, marketing or opportunistic investments without relying on external financing.

Negative Factors

Weak free cash flow and cash conversionFree cash flow near breakeven and operating cash covering only ~65% of net income indicate inconsistent cash conversion. This constrains the firm's ability to fund dividends, reinvest in manufacturing or marketing, and increases sensitivity to working-capital swings and input-cost volatility over the medium term.

Iwatsuka Confectionery Co., Ltd. (2221) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 30.83B
Dividend Yield: 1.06%
Average Volume (3M): 3,105
Price to Earnings (P/E): 17.4
Beta (1Y): 0.21
Revenue Growth: 11.99%
EPS Growth: -37.07%
Country: Japan
Employees: 844
Sector: Consumer Defensive
Sector Strength: 62
Industry: Food Confectioners

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

Company Description

Based in Nagaoka, Japan, Iwatsuka Confectionery Co., Ltd. has been manufacturing and selling various rice crackers throughout Japan since its founding in 1947. The company's product offerings include an assortment of rice-based snacks, such as variet...

How the Company Makes Money

Iwatsuka Confectionery primarily makes money by manufacturing and selling rice-based snack products and recognizing revenue from product shipments to its customers. Key revenue streams include: (1) Sales of branded packaged rice crackers and related...

Iwatsuka Confectionery Co., Ltd. Financial Statement Overview

Summary

Financial performance is moderately strong overall, supported by a very conservative balance sheet and solid equity growth, but tempered by weaker net income, moderate returns on equity, and softening free cash flow conversion. Revenue growth and positive margins show stability, yet recent profit and cash trends limit the score to the mid‑range.

Income Statement

58Neutral

Balance Sheet

88Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	29.24B	28.85B	24.95B	22.00B	20.39B	18.04B
Gross Profit	7.16B	7.33B	6.86B	5.68B	4.57B	4.18B
EBITDA	2.29B	2.59B	2.40B	2.04B	1.14B	936.84M
Net Income	1.77B	2.03B	2.91B	1.96B	3.97B	828.07M
Balance Sheet
Total Assets	78.58B	93.06B	91.10B	85.75B	83.56B	96.28B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.93B	4.06B	2.84B	4.54B	1.78B
Total Debt	384.05M	131.11M	536.01M	862.12M	1.26B	2.09B
Total Liabilities	18.81B	23.20B	23.15B	21.95B	21.49B	26.59B
Stockholders Equity	59.77B	69.85B	67.95B	63.81B	62.06B	69.69B
Cash Flow
Free Cash Flow	0	65.98M	1.95B	885.97M	3.79B	684.21M
Operating Cash Flow	0	3.07B	3.94B	2.76B	5.34B	2.38B
Investing Cash Flow	0	-3.42B	-2.07B	-1.84B	-1.56B	-1.76B
Financing Cash Flow	0	-1.18B	-653.71M	-2.61B	-1.02B	-108.53M

Iwatsuka Confectionery Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price3005.00

Price Trends

50DMA3038.00Negative

100DMA3048.45Negative

200DMA3096.00Negative

Market Momentum

MACD-8.58Negative

RSI42.10Neutral

STOCH27.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2221, the sentiment is Negative. The current price of 3005.00 is below the 20-day moving average (MA) of 3013.75, below the 50-day MA of 3038.00, and below the 200-day MA of 3096.00, indicating a bearish trend. The MACD of -8.58 indicates Negative momentum. The RSI at 42.10 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2221.

Iwatsuka Confectionery Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:2221 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2201	76Outperform	JPY 197.20B	11.90	12.47%	2.77%	3.34%	-0.81%
JP:2208	70Outperform	JPY 73.03B	11.57	―	1.45%	7.47%	27.86%
JP:2216	70Outperform	JPY 43.61B	15.07	―	3.06%	7.25%	-11.18%
JP:2221	67Neutral	JPY 34.86B	17.37	―	1.06%	11.99%	-37.07%
JP:2209	66Neutral	JPY 29.27B	11.69	―	1.71%	4.60%	12.15%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:2211	48Neutral	JPY 63.23B	53.30	―	1.23%	5.76%	-38.25%

* Consumer Defensive Sector Average

Performance Comparison

JP:2221 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2221	Iwatsuka Confectionery Co., Ltd.	3005.00	55.27	1.87%
JP:2201	Morinaga & Co	2434.00	-168.88	-6.49%
JP:2208	Bourbon Corporation	3030.00	655.98	27.63%
JP:2209	Imuraya Group Co., Ltd.	2224.00	-207.63	-8.54%
JP:2211	Fujiya Co., Ltd.	2440.00	-88.14	-3.49%
JP:2216	KANRO Co., Ltd.	1046.00	-364.52	-25.84%

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 17, 2026

Iwatsuka Confectionery Co., Ltd. AI Stock Analysis