Kakiyasu Honten Co., Ltd. (2294) AI Stock Analysis

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Kakiyasu Honten Co., Ltd.

(TSE/TYO:2294)

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Rating:59Neutral

Price Target:JPY 2,614.00▲(4.52% Upside)

Action:reiterated

Date:09/11/26

The company's fortress-like balance sheet with almost no debt provides a strong foundation, but this is significantly offset by deteriorating profitability and deeply bearish technical momentum. The stock is under heavy selling pressure with all technical indicators pointing downward. The high P/E ratio combined with declining earnings raises valuation concerns, though the 3.4% dividend yield offers some cushion. Overall, financial stability is the primary support, while weak momentum and margin compression are the key risks.

Positive Factors

Very low leverageNear-zero leverage gives Kakiyasu Honten substantial financial flexibility and limits refinancing risk. A strong equity base can help the company absorb cost shocks, maintain operations through weaker demand, and fund selected investments without depending heavily on additional borrowing.

Negative Factors

Structural margin compressionThe sustained decline in net, EBIT, and EBITDA margins signals weaker earnings quality and reduced operating leverage. Even with a strong gross margin, lower conversion into profit leaves less room to absorb costs, invest in the retail network, or maintain returns if pressure persists.

Kakiyasu Honten Co., Ltd. (2294) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 23.82B
Dividend Yield: 3.42%
Average Volume (3M): 23.61K
Price to Earnings (P/E): 35.0
Beta (1Y): 0.25
Revenue Growth: -0.78%
EPS Growth: -3.56%
Country: Japan
Employees: 813
Sector: General
Sector Strength: 55
Industry: Food Distribution

Kakiyasu Honten Co., Ltd. Business Overview & Revenue Model

Company Description

Kakiyasu Honten Co., Ltd. is a Japanese food enterprise primarily engaged in the manufacturing and distribution of various ready-to-eat food products. Its diverse product range encompasses prepared meats, including beef, pork, and chicken, alongside...

How the Company Makes Money

Kakiyasu Honten primarily earns revenue by selling food products directly to consumers through its retail store network. Key revenue streams include (1) retail sales of prepared foods (ready-to-eat dishes, deli items, and other takeout foods) produce...

Kakiyasu Honten Co., Ltd. Financial Statement Overview

Summary

The balance sheet is exceptionally strong with negligible debt (D/E 0.006), providing high financial stability. Cash flow generation is healthy with good conversion. However, profitability has weakened with declining margins and net income, offsetting the balance sheet strength.

Income Statement

55Neutral

Balance Sheet

88Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Apr 2026	Apr 2025	Apr 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	36.30B	36.34B	36.10B	37.05B	37.64B	38.00B
Gross Profit	19.43B	19.50B	19.58B	20.00B	20.12B	19.75B
EBITDA	2.04B	1.82B	2.13B	2.74B	3.49B	3.29B
Net Income	623.00M	700.00M	701.00M	1.40B	1.89B	1.70B
Balance Sheet
Total Assets	18.90B	18.26B	19.38B	21.88B	21.86B	20.13B
Cash, Cash Equivalents and Short-Term Investments	6.79B	7.11B	8.00B	10.71B	11.35B	10.55B
Total Debt	93.00M	91.00M	52.00M	46.00M	7.00M	13.00M
Total Liabilities	3.72B	3.81B	4.34B	4.22B	4.85B	4.29B
Stockholders Equity	15.18B	14.45B	15.04B	17.66B	17.01B	15.83B
Cash Flow
Free Cash Flow	1.08B	1.08B	751.00M	383.00M	1.91B	3.53B
Operating Cash Flow	1.54B	1.54B	1.75B	1.41B	2.55B	3.74B
Investing Cash Flow	-657.00M	-657.00M	-2.95B	-1.15B	-699.00M	-418.00M
Financing Cash Flow	-826.00M	-826.00M	-905.00M	-895.00M	-1.05B	-789.00M

Kakiyasu Honten Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price2501.00

Price Trends

50DMA2495.60Negative

100DMA2529.11Negative

200DMA2623.82Negative

Market Momentum

MACD-3.38Negative

RSI51.51Neutral

STOCH82.17Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2294, the sentiment is Neutral. The current price of 2501.00 is above the 20-day moving average (MA) of 2473.05, above the 50-day MA of 2495.60, and below the 200-day MA of 2623.82, indicating a neutral trend. The MACD of -3.38 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 82.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2294.

Kakiyasu Honten Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:2294 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3182	66Neutral	JPY 57.96B	11.23	―	1.23%	-5.22%	27.32%
JP:8030	66Neutral	JPY 14.26B	4.79	―	3.35%	5.82%	8.33%
JP:7686	64Neutral	JPY 12.42B	11.30	―	4.76%	3.45%	81.97%
JP:2281	61Neutral	JPY 115.98B	25.64	―	3.50%	4.85%	-24.44%
JP:2294	59Neutral	JPY 26.32B	34.98	―	3.42%	-0.78%	-3.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:2294 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2294	Kakiyasu Honten Co., Ltd.	2501.00	-66.39	-2.59%
JP:2281	Prima Meat Packers,Ltd.	2330.00	-136.71	-5.54%
JP:3182	Oisix ra daichi, Inc.	1632.00	14.26	0.88%
JP:7686	Kakuyasu Group Co., Ltd.	421.00	2.82	0.67%
JP:8030	Chuo Gyorui Co., Ltd.	3535.00	129.79	3.81%

Kakiyasu Honten Co., Ltd. Corporate Events

Kakiyasu Honten Posts Slight Gain in August Sales Amid Mixed Segment Trends

Sep 9, 2026

Kakiyasu Honten Co., Ltd. reported preliminary net sales for August 2026 in its fiscal year ending April 30, 2027, showing company-wide single-month sales slightly above the prior year and cumulative sales also marginally higher. Overall performance...

Kakiyasu Honten Q1 Profit Plunges but Full-Year Outlook and Dividend Held Steady

Sep 9, 2026

Kakiyasu Honten reported a 2.4% year-on-year decline in first-quarter net sales to ¥8,446 million, with operating profit dropping 72.8% and profit attributable to owners of parent falling 88.8% to ¥16 million, reflecting sharply compressed margins. T...

Kakiyasu Honten Posts Flat Q1 Sales as Growth Shifts Across Food Segments

Aug 13, 2026

Kakiyasu Honten reported preliminary net sales figures for July 2026 and the first quarter of the fiscal year ending April 30, 2027, showing that total company sales were broadly flat year-on-year, with a slight overall increase of about 0.9% in July...

Kakiyasu Honten Reports Stable Preliminary June Sales Across Food Segments

Jul 10, 2026

Kakiyasu Honten Co., Ltd. reported preliminary net sales figures for June 2026 in the fiscal year ending April 30, 2027, showing overall company sales essentially flat year on year at 99.40% for the month and 100.10% cumulatively compared with June 2...

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: Sep 11, 2026

Kakiyasu Honten Co., Ltd. AI Stock Analysis