Kagome Co., Ltd. (2811) AI Stock Analysis

Kagome Co., Ltd.

(TSE/TYO:2811)

Select Model

Rating:63Neutral

Price Target:JPY 2,917.00▲(5.17% Upside)

Action:reiterated

Date:10/31/26

Overall score reflects steady but not exceptional fundamentals: manageable leverage and a generally healthy operating profile are offset by a notable step-down in recent profitability (lower margins and ROE) and mixed cash conversion. Technicals add mild support (trading above key moving averages with neutral momentum), while valuation and dividend are fair but not compelling.

Positive Factors

Diversified vegetable-food modelKagome combines branded consumer products with recurring B2B ingredient and foodservice demand, creating multiple revenue channels around its core vegetable and tomato expertise. This diversification can support resilience across retail and commercial customers while reinforcing the company’s established category position.

Negative Factors

Margin compressionThe sharp reduction in net margin indicates that recent revenue is producing less bottom-line profit than in the prior period. Sustained margin pressure would reduce earnings resilience, limit reinvestment capacity, and make profitability more sensitive to input costs, pricing, and operating efficiency.

Kagome Co., Ltd. (2811) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 247.67B
Dividend Yield: 1.75%
Average Volume (3M): 320.24K
Price to Earnings (P/E): 19.6
Beta (1Y): 0.29
Revenue Growth: 2.64%
EPS Growth: 2.32%
Country: Japan
Employees: 3,253
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

Kagome Co., Ltd. Business Overview & Revenue Model

Company Description

Kagome Co., Ltd. is a Japanese enterprise primarily involved in the manufacturing and distribution of various food and beverage products within Japan. Its extensive product line includes a diverse selection of condiments, nutritional supplements, and...

How the Company Makes Money

Kagome makes money by manufacturing and selling packaged food and beverage products and by supplying vegetable and tomato-based ingredients to commercial customers. Key revenue streams include: (1) Consumer packaged goods sales, where Kagome earns re...

Kagome Co., Ltd. Financial Statement Overview

Summary

Income statement strength is moderate: revenue has grown over several years and TTM returned to modest growth, but recent profitability has weakened (TTM net margin ~4.2% vs ~8.2% in 2024). The balance sheet is solid with manageable and improving leverage (debt-to-equity ~0.43), though ROE has cooled (~6.6% TTM vs ~13.5% in 2024). Cash flow is positive but uneven: TTM FCF is ~12.9B with slight decline (~-2.7%) and only ~55% of net income, indicating imperfect cash conversion.

Income Statement

63Positive

Balance Sheet

71Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	304.62B	294.26B	306.87B	224.73B	205.62B	189.65B
Gross Profit	97.05B	92.58B	96.72B	77.91B	69.22B	67.62B
EBITDA	30.30B	35.54B	48.79B	26.55B	21.47B	21.77B
Net Income	12.67B	14.80B	25.02B	10.43B	9.12B	9.76B
Balance Sheet
Total Assets	378.61B	375.82B	362.42B	265.65B	225.37B	215.21B
Cash, Cash Equivalents and Short-Term Investments	16.45B	26.84B	21.27B	36.01B	21.39B	31.23B
Total Debt	81.65B	85.21B	73.98B	66.62B	44.07B	35.63B
Total Liabilities	165.09B	160.93B	150.77B	129.21B	103.58B	95.66B
Stockholders Equity	191.46B	190.56B	185.74B	132.26B	119.07B	117.56B
Cash Flow
Free Cash Flow	12.85B	15.54B	20.75B	-1.81B	-5.24B	-27.00M
Operating Cash Flow	23.50B	26.93B	31.69B	4.62B	4.63B	14.80B
Investing Cash Flow	-14.79B	-11.48B	-46.33B	-6.06B	-9.41B	-14.15B
Financing Cash Flow	-18.66B	-10.39B	-571.00M	15.63B	-5.55B	-27.67B

Kagome Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2773.50

Price Trends

50DMA2721.34Positive

100DMA2682.38Positive

200DMA2710.47Positive

Market Momentum

MACD8.97Positive

RSI51.04Neutral

STOCH20.92Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2811, the sentiment is Positive. The current price of 2773.50 is above the 20-day moving average (MA) of 2730.67, above the 50-day MA of 2721.34, and above the 200-day MA of 2710.47, indicating a bullish trend. The MACD of 8.97 indicates Positive momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 20.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2811.

Kagome Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:2811 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2801	72Outperform	JPY 1.74T	25.66	11.85%	1.39%	9.27%	12.89%
JP:2809	68Neutral	JPY 641.23B	24.61	7.92%	1.39%	4.07%	-6.32%
JP:2805	66Neutral	JPY 169.98B	16.03	―	0.86%	6.99%	29.27%
JP:2802	63Neutral	JPY 4.79T	35.58	18.50%	0.96%	6.72%	83.84%
JP:2811	63Neutral	JPY 235.83B	19.59	―	1.75%	2.64%	2.32%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:2810	62Neutral	JPY 423.39B	39.58	3.68%	2.06%	0.01%	1.50%

* Consumer Defensive Sector Average

Performance Comparison

JP:2811 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2811	Kagome Co., Ltd.	2738.50	108.59	4.13%
JP:2802	Ajinomoto Co	5118.00	789.89	18.25%
JP:2810	House Foods Group	4650.00	1841.31	65.56%
JP:2801	Kikkoman Corporation	1803.00	597.03	49.51%
JP:2809	Kewpie Corporation	4613.00	404.98	9.62%
JP:2805	S&B Foods Inc.	6540.00	3236.16	97.95%

Kagome Co., Ltd. Corporate Events

Kagome Adopts IFRS 18 and Updates Key Financial Metrics for 2026

Oct 29, 2026

Kagome has released supplemental consolidated financial information under IFRS for the nine months ended September 30, 2026, including trends in key management indicators, segment results, and cash flow data. The company early adopted IFRS 18 to stan...

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: Oct 31, 2026

Kagome Co., Ltd. AI Stock Analysis