Nisshin OilliO Group, Ltd. (2602) AI Stock Analysis

• Market Cap: €160.43B
• Dividend Yield: 3.83%
• Average Volume (3M): 99.67K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.54
• Revenue Growth: 1.00%
• EPS Growth: -3.79%
• Country: JP
• Employees: 3,078
• Sector: Consumer Defensive
• Sector Strength: 79
• Industry: Packaged Foods
• EPS (TTM): 20.77
• Shares Outstanding: 33,716,255
• 10 Day Avg. Volume: 64,040
• 30 Day Avg. Volume: 99,666
• PEG Ratio: -1.48
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 66.94
• 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

Nisshin OilliO Group's strong revenue growth and stable profitability are significant strengths, providing a solid foundation for the stock. However, challenges such as operational efficiency pressures and cash flow volatility present risks. Technical indicators point to a bearish trend, which requires careful monitoring. The stock's attractive valuation, evidenced by a low P/E ratio and high dividend yield, offers potential opportunities for investors seeking value and income.

Nisshin OilliO Group, Ltd. Business Overview & Revenue Model

Company Description

The Nisshin OilliO Group,Ltd. engages in oil and meal, processed oil and fat, fine chemical, and health science businesses in Japan, China, Taiwan, Malaysia, Singapore, Indonesia, the United States, and Europe. The company offers edible oil for use in household, commercial, and food processing applications; and oil meal, soy food, soy protein, dressings, and healthy food products, as well as foods for the elderly and nursing care patients, etc. It also provides margarines and shortenings, processed palm oil products, oils and fats for chocolates, etc.; and fine chemicals, including medium-chain triglycerides, food ingredients, chemical products, and raw materials for cosmetics, etc. In addition, the company develops and sells functional raw materials for use in the fields of pharmaceuticals and industrial products; meals for food and livestock feed; and food for diet and lifestyle-related diseases. Further, it is involved in the logistics, information-related services, sales promotion, and insurance agency businesses. Additionally, the company imports and sells fine chemical products, including oil for industrial and cosmetic uses, MCTs, etc.; manufactures and sells palm oil and specialty fats, chocolate products for commercial use, and vegetable oils; and manufactures confectionery supplies. The Nisshin OilliO Group,Ltd. was incorporated in 1907 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nisshin OilliO Group, Ltd. generates revenue through the manufacturing and sale of a wide range of edible oils and related food products. Its key revenue streams include domestic and international sales of cooking oils to both retail and commercial customers. The company also earns income from its processed food segment, which includes products such as margarine, shortening, and dressings. Additionally, Nisshin OilliO capitalizes on its health and nutrition segment by marketing functional foods and dietary supplements. Strategic partnerships with other food manufacturers and distributors further enhance its market reach and revenue potential. The company invests in research and development to innovate and maintain a competitive edge in the food industry.

Nisshin OilliO Group, Ltd. Financial Statement Overview

Summary

Nisshin OilliO Group demonstrates strong revenue growth and profitability, supported by a stable balance sheet. However, operational efficiency pressures and cash flow volatility could challenge future financial stability. The company's ability to manage its debt and maintain cash flow stability will be crucial for sustaining its financial health.

Income Statement

Nisshin OilliO Group has shown consistent revenue growth, with a notable increase from 2023 to TTM (Trailing-Twelve-Months) in 2024. Gross Profit Margin and Net Profit Margin have remained stable, indicating efficient cost management. However, the decline in EBIT and EBITDA margins from the annual 2024 report to TTM suggests potential pressure on operational efficiency.

Balance Sheet

The company's Debt-to-Equity ratio indicates moderate leverage, with a stable equity base. Return on Equity has been positive, reflecting profitability. However, the high level of total debt compared to equity could pose risks if interest rates rise or cash flows decline.

Cash Flow

Operating cash flow has fluctuated significantly, but the current TTM shows positive free cash flow. The Free Cash Flow to Net Income ratio indicates efficient cash generation relative to net income, yet volatility in historical cash flow performance suggests potential liquidity concerns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
527.25B	513.54B	556.57B	432.78B	336.31B	333.42B
	Gross Profit
73.99B	74.32B	65.62B	56.99B	60.39B	61.52B
	EBIT
18.33B	20.84B	16.19B	11.67B	12.32B	13.13B
	EBITDA
28.43B	31.58B	25.61B	20.58B	20.42B	20.65B
	Net Income Common Stockholders
13.49B	15.15B	11.16B	8.60B	9.24B	8.29B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.25B	20.43B	13.04B	9.98B	11.04B	25.32B
	Total Assets
405.50B	393.38B	374.45B	344.51B	292.15B	277.43B
	Total Debt
104.35B	104.62B	111.82B	97.83B	59.52B	56.30B
	Net Debt
85.94B	84.19B	98.78B	87.85B	48.48B	32.99B
	Total Liabilities
204.46B	200.82B	203.04B	180.19B	138.90B	128.10B
	Stockholders Equity
190.13B	182.62B	162.56B	156.22B	145.55B	139.34B
Cash Flow		Free Cash Flow
2.44B	21.95B	-6.83B	-36.77B	-7.81B	10.48B
	Operating Cash Flow
19.33B	36.72B	398.00M	-26.63B	6.34B	22.42B
	Investing Cash Flow
-14.88B	-16.08B	-6.14B	-9.33B	-14.63B	-14.24B
	Financing Cash Flow
-818.00M	-14.59B	6.34B	34.47B	-5.81B	2.24B

Nisshin OilliO Group, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5040.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2602, the sentiment is Positive. The current price of 5040 is above the 20-day moving average (MA) of 4907.50, above the 50-day MA of 4826.06, and above the 200-day MA of 4925.03, indicating a bullish trend. The MACD of 54.10 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 75.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2602.

Nisshin OilliO Group, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2602	73 Outperform	€160.43B	11.89	7.16%	3.83%	1.00%	-3.79%
Sector *	64 Neutral	$8.78B	14.76	5.05%	174.28%	3.62%	3.48%
2607	44 Neutral	¥290.81B	―		1.54%	12.84%	-127.79%

Nisshin OilliO Group, Ltd. Corporate Events

Nisshin OilliO Announces Strategic Asset Transfer and Acquisition

Nisshin OilliO Group, Ltd. has announced the transfer and acquisition of fixed assets as part of its strategic resource optimization and expansion plans. The company will transfer a commercial land asset in Yokohama, generating an estimated gain of 23.1 billion yen, which will be recorded as extraordinary income in the next fiscal year. Concurrently, Nisshin OilliO will acquire a larger commercial land asset to expand its Yokohama Isogo Complex, with a lease-back arrangement allowing the current occupant to vacate by March 2031. These transactions are not expected to impact the current fiscal period’s business results but position the company for future growth.

Nisshin OilliO Revises FY2024 Earnings Forecasts Amid Sector Challenges

The Nisshin OilliO Group has revised its full-year consolidated earnings forecasts for FY2024, anticipating lower profits due to challenges in the oil and fat segment. Despite efforts to adjust sales prices and cut expenses, the company expects profits to fall below initial expectations. However, the processed food and materials segment, particularly the chocolate business, is expected to exceed profit expectations due to successful pricing strategies and maintained sales volumes. The overall impact of the oil and fat segment’s performance has led to a downward revision of profit forecasts.

Nisshin OilliO Unveils Ambitious Medium-Term Business Plan

The Nisshin OilliO Group has announced its Medium-Term Business Plan, Value UpX, which aims to accelerate growth and achieve the goals set in its Vision 2030. The plan focuses on strategic marketing, technological innovation, and globalization, with specific targets for increasing market share in cocoa butter equivalents and cosmetic oils. The company also plans to enhance its operations in North America and improve its return on capital and human resource management. The plan includes performance targets such as increasing ROE and ROIC, and emphasizes shareholder returns with a target dividend payout ratio of 40%.

Nisshin OilliO Group Announces Executive Leadership Changes

The Nisshin OilliO Group, Ltd. announced significant changes to its executive leadership, effective April 1, 2025, and following the Annual General Meeting of Shareholders in June 2025. These changes include the appointment of new directors and the termination of some directorships, aimed at restructuring the executive framework to better align with the company’s strategic goals.

Nisshin OilliO Reports Increased Sales Amidst Profit Challenges

Nisshin OilliO Group reported a 3.5% increase in net sales for the nine months ending December 31, 2024, despite a decline in operating and ordinary profits. The company has maintained its dividend forecast and expects a slight growth in net sales for the fiscal year ending March 31, 2025, reflecting a stable financial position but facing challenges in profit margins.