NH Foods (2282) AI Stock Analysis

• Market Cap: €523.84B
• Dividend Yield: 2.63%
• Average Volume (3M): 453.66K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.21
• Revenue Growth: 6.99%
• EPS Growth: -4.80%
• Country: JP
• Employees: 15,429
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Packaged Foods
• EPS (TTM): 112.24
• Shares Outstanding: 99,095,000
• 10 Day Avg. Volume: 413,580
• 30 Day Avg. Volume: 453,663
• PEG Ratio: 2.56
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.02
• 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: €6,050.07
• Price Target Upside: 14.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

NH Foods demonstrates strong financial performance with robust revenue growth and solid cash flow management. Technical indicators suggest a positive stock trend, supporting its growth narrative. Valuation is reasonable, with a fair P/E ratio and attractive dividend yield. Overall, the stock is well-positioned for growth, though maintaining an eye on debt levels and capital expenditure is advised.

NH Foods Business Overview & Revenue Model

Company Description

NH Foods Ltd. (2282) is a leading Japanese food processing company engaged in the production and distribution of a wide range of food products. Specializing in meat processing, the company operates across various sectors including fresh meats, processed foods, and logistics. NH Foods is renowned for its vertically integrated supply chain, ensuring quality control from farm to table, and offers products such as fresh beef, pork, chicken, and processed foods like hams and sausages. The company also engages in the production of marine and dairy products, making it a versatile player in the global food industry.

How the Company Makes Money

NH Foods generates revenue primarily through the sale of its fresh and processed meat products. The company's key revenue streams include the domestic and international sales of fresh meats, which account for a significant portion of its income. Additionally, processed foods such as hams, sausages, and other ready-to-eat products contribute substantially to its earnings. NH Foods leverages its extensive logistics network and distribution channels to ensure efficient delivery of products, enhancing its market reach and profitability. Strategic partnerships and collaborations with international food companies help NH Foods expand its global footprint, further boosting its revenue. The company's focus on quality control and sustainability throughout its supply chain also plays a crucial role in maintaining customer trust and driving sales.

NH Foods Financial Statement Overview

Summary

NH Foods exhibits strong financial health with robust revenue growth and profitability, supported by effective cost management. The balance sheet reflects a stable financial structure with prudent leverage, while cash flow generation remains solid despite some fluctuations in free cash flow. The company is well-positioned for future growth within the consumer products sector, though careful attention to debt levels and capital expenditures is advisable.

Income Statement

NH Foods demonstrates strong profitability with a consistent gross profit margin of approximately 15.9% in TTM. The net profit margin has improved to 2.04% from 2.15% a year ago, indicating stable net income relative to revenue. Revenue growth is evident with a 4.38% increase in the latest annual report compared to the previous year, reflecting positive sales momentum. The EBIT margin of 2.5% and EBITDA margin of 6.3% in TTM highlight efficient operational management.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.48, showing manageable leverage. Return on equity stands at 5.21% in TTM, indicating efficient use of equity to generate profits. The equity ratio is healthy at 53.4%, underscoring a strong equity base relative to total assets, though total liabilities have increased over time, which warrants monitoring.

Cash Flow

NH Foods has shown impressive cash flow management with a significant operating cash flow to net income ratio of 2.1 in TTM, suggesting strong cash generation from operations. The free cash flow to net income ratio of 0.55 indicates positive free cash flow, though it has declined from previous periods due to higher capital expenditures. Despite this, the company maintains a solid cash position.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.36T	1.30T	1.26T	1.17T	1.18T	1.23T
	Gross Profit
215.95B	203.63B	177.03B	200.03B	211.73B	205.53B
	EBIT
33.96B	31.56B	10.54B	42.55B	51.31B	40.08B
	EBITDA
85.05B	82.17B	48.97B	79.02B	85.42B	73.42B
	Net Income Common Stockholders
27.71B	28.08B	16.64B	48.05B	32.62B	19.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
84.46B	65.47B	74.08B	110.02B	98.91B	84.10B
	Total Assets
996.11B	958.24B	937.15B	909.21B	825.40B	768.86B
	Total Debt
255.35B	214.85B	242.06B	211.41B	193.75B	176.49B
	Net Debt
170.90B	149.39B	177.07B	126.03B	109.92B	104.09B
	Total Liabilities
451.10B	419.04B	434.37B	419.66B	381.10B	352.26B
	Stockholders Equity
531.69B	527.50B	492.91B	479.07B	433.60B	404.41B
Cash Flow		Free Cash Flow
15.37B	38.11B	-70.93B	-11.09B	23.12B	28.57B
	Operating Cash Flow
58.22B	86.59B	11.33B	33.39B	82.52B	65.46B
	Investing Cash Flow
-27.36B	-39.22B	-63.68B	-22.84B	-57.83B	-36.73B
	Financing Cash Flow
-20.72B	-53.19B	28.42B	-12.16B	-14.93B	-3.08B

NH Foods Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5285.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2282, the sentiment is Neutral. The current price of 5285 is below the 20-day moving average (MA) of 5355.40, above the 50-day MA of 5024.07, and above the 200-day MA of 4953.43, indicating a neutral trend. The MACD of 105.59 indicates Positive momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 47.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2282.

NH Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2282	79 Outperform	€523.84B	20.24	4.96%	2.63%	6.99%	-4.80%
2875	76 Outperform	¥979.61B	15.31	13.14%	1.74%	12.15%	44.46%
2802	74 Outperform	$3.25T	46.58	8.89%	1.20%	8.76%	-0.23%
2002	70 Outperform	¥525.12B	16.80		2.95%	0.67%	-22.08%
2871	69 Neutral	€497.75B	20.18	9.55%	2.41%	3.70%	0.75%
Sector *	64 Neutral	$8.75B	14.76	4.97%	174.27%	3.56%	3.44%
2874	63 Neutral	¥50.48B	22.33		2.80%	-0.85%	―

NH Foods Corporate Events

NH Foods Announces Election of New Directors

NH Foods Ltd. announced a resolution for the election of new directors, including outside director candidates, which will be finalized at the upcoming Ordinary General Meeting of Shareholders in June 2025. This leadership change is expected to influence the company’s strategic direction and strengthen its governance, potentially impacting its market positioning and stakeholder relations.