Nichirei Corporation (2871) AI Stock Analysis

• Market Cap: €490.91B
• Dividend Yield: 2.45%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.19
• Revenue Growth: 3.70%
• EPS Growth: 0.75%
• Country: JP
• Employees: 16,385
• Sector: Industrials
• Sector Strength: 78
• Industry: Packaged Foods
• EPS (TTM): 97.93
• Shares Outstanding: 256,929,750
• 10 Day Avg. Volume: 1,272,000
• 30 Day Avg. Volume: 1,291,260
• PEG Ratio: 26.50
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €3,175.53
• Price Target Upside: 63.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Nichirei Corporation demonstrates strong financial performance with consistent revenue and profit growth, supported by a solid balance sheet. However, cash flow management needs attention to maintain long-term stability. Although the short-term technical indicators point to some upward momentum, the longer-term trend is less favorable. Valuation metrics suggest the stock is reasonably priced, with an attractive dividend yield. Overall, Nichirei Corporation presents a stable investment opportunity with room for operational improvements.

Nichirei Corporation Business Overview & Revenue Model

Company Description

Nichirei Corporation is a leading Japanese company that operates primarily in the food and logistics sectors. The company's core products and services include processed foods, such as frozen and pre-cooked meals, as well as logistics services specializing in temperature-controlled transportation and storage. Nichirei also has interests in biosciences, focusing on the development of natural extracts and functional ingredients.

How the Company Makes Money

Nichirei Corporation makes money through its diverse operations across several key business segments. The primary source of revenue is its processed foods segment, which includes the production and sale of frozen foods, ready-to-eat meals, and other processed food items to both domestic and international markets. Nichirei's logistics segment also contributes significantly to its earnings, providing specialized services such as refrigerated transportation and cold storage solutions crucial for temperature-sensitive goods. Additionally, the company has a bioscience division that generates income from the development and sale of natural extracts and ingredients used in various industries, including pharmaceuticals and nutraceuticals. Nichirei's revenue model is further supported by strategic partnerships with retailers, distributors, and other food manufacturers, enhancing its market reach and distribution capabilities.

Nichirei Corporation Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
680.09B	662.20B	602.70B	572.76B	584.86B
	Gross Profit
120.15B	108.87B	102.25B	98.80B	99.07B
	EBIT
36.91B	32.94B	31.41B	32.95B	31.04B
	EBITDA
61.13B	56.47B	57.09B	52.23B	49.22B
	Net Income Common Stockholders
24.50B	21.57B	23.38B	21.21B	19.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.28B	27.84B	23.41B	28.93B	25.93B
	Total Assets
485.16B	457.33B	427.61B	405.72B	390.00B
	Total Debt
97.95B	114.58B	104.71B	96.42B	96.35B
	Net Debt
66.67B	86.73B	81.30B	67.49B	70.42B
	Total Liabilities
219.22B	223.82B	209.70B	195.29B	198.62B
	Stockholders Equity
253.41B	224.44B	211.17B	203.32B	184.50B
Cash Flow		Free Cash Flow
33.50B	12.77B	11.95B	14.80B	17.74B
	Operating Cash Flow
62.44B	37.87B	34.66B	45.45B	39.44B
	Investing Cash Flow
-31.59B	-26.84B	-26.02B	-32.21B	-24.30B
	Financing Cash Flow
-31.25B	-8.59B	-14.18B	-10.71B	-10.22B

Nichirei Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1937.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2871, the sentiment is Positive. The current price of 1937 is above the 20-day moving average (MA) of 1897.38, above the 50-day MA of 1813.81, and below the 200-day MA of 1958.07, indicating a neutral trend. The MACD of 37.68 indicates Positive momentum. The RSI at 57.08 is Neutral, neither overbought nor oversold. The STOCH value of 45.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2871.

Nichirei Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2282	79 Outperform	¥537.42B	20.05	5.09%	2.55%	6.99%	-4.80%
2875	76 Outperform	¥950.09B	13.80	14.64%	1.74%	12.15%	44.46%
2801	74 Outperform	¥1.40T	22.32	12.17%	1.53%	7.29%	9.77%
2802	74 Outperform	$3.00T	33.08	11.13%	1.27%	8.76%	-0.23%
2914	72 Outperform	$7.97T	44.46	4.70%	4.06%	10.86%	-62.84%
2871	69 Neutral	€490.91B	19.78	9.59%	2.45%	3.70%	0.75%
Sector *	64 Neutral	$4.27B	11.80	5.31%	249.79%	4.07%	-9.02%

Nichirei Corporation Corporate Events

Nichirei Corporation Implements Measures to Prevent Misconduct Recurrence

Nichirei Corporation has announced measures to prevent recurrence of misconduct at its Chinese subsidiary, following an investigation into governance deficiencies and management issues. The company plans to enhance governance and internal controls, clarify executive appointment criteria, and strengthen management involvement to restore trust and ensure compliance across its operations.

Nichirei Corporation Uncovers Misconduct at Chinese Subsidiary

Nichirei Corporation has disclosed misconduct by a former employee at its Chinese subsidiary, Nichirei Corporation Shanghai Ltd. The misconduct involved unauthorized business activities and financial agreements, leading to a loss of approximately 90 million yen. The company has initiated an investigation and plans to implement measures to prevent future occurrences, although the financial impact on the company is expected to be limited.