Seihyo Co., Ltd. (2872) AI Stock Analysis

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Seihyo Co., Ltd.

(TSE/TYO:2872)

Select Model

Rating:40Underperform

Price Target:JPY 1,823.00▼(-5.89% Downside)

Action:downgraded

Date:11/06/26

The overall score is very low, driven primarily by severe deterioration in financial performance, including collapsing profitability and negative free cash flow. This is compounded by a persistently bearish technical trend across all timeframes and a negative P/E ratio that underscores the lack of current earnings power.

Positive Factors

Revenue GrowthSustained revenue expansion indicates that Seihyo continues to generate demand for its frozen dessert and food products. The latest acceleration could strengthen operating scale and distribution reach, although durable earnings benefits will depend on converting sales growth into healthier margins.

Negative Factors

Fragile ProfitabilityA net margin near zero leaves little protection against higher costs, weaker mix, or modest execution setbacks. The deterioration in operating profitability also suggests that recent revenue growth is not yet translating into durable earnings power, limiting internally funded expansion and resilience.

Seihyo Co., Ltd. (2872) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.72B
Dividend Yield: 0.93%
Average Volume (3M): 2,490
Price to Earnings (P/E): -65.5
Beta (1Y): 0.12
Revenue Growth: 16.96%
EPS Growth: -143.18%
Country: Japan
Employees: 108
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

Seihyo Co., Ltd. Business Overview & Revenue Model

Company Description

Seihyo Co., Ltd. is a Japanese enterprise primarily involved in the manufacturing, procurement, and sale of frozen desserts throughout Japan. The company's activities encompass the production, sourcing, and wholesale distribution of ice cream, alongs...

How the Company Makes Money

Seihyo generates revenue primarily by manufacturing and selling its frozen dessert/ice products to customers (e.g., wholesalers, retailers, and other commercial buyers). Its core revenue stream is product sales, where earnings are driven by shipment...

Seihyo Co., Ltd. Financial Statement Overview

Summary

Financial health is poor. While revenue growth is steady, profitability has collapsed (net margin 0.2%), cash flow generation is critically weak (FCF -¥525M), and leverage is rising with a very low return on equity (0.77%).

Income Statement

30Negative

Balance Sheet

35Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	5.57B	4.80B	4.48B	4.26B	4.19B	3.96B
Gross Profit	946.22M	823.55M	848.61M	703.90M	578.12M	618.14M
EBITDA	198.75M	204.42M	260.01M	221.17M	171.46M	188.82M
Net Income	-41.29M	11.48M	119.50M	61.41M	20.59M	63.48M
Balance Sheet
Total Assets	4.97B	3.99B	3.31B	2.93B	2.88B	2.09B
Cash, Cash Equivalents and Short-Term Investments	400.12M	234.51M	329.43M	215.12M	573.34M	213.76M
Total Debt	1.93B	1.25B	1.17B	912.49M	600.43M	524.00M
Total Liabilities	3.36B	2.49B	1.92B	1.65B	1.38B	992.95M
Stockholders Equity	1.61B	1.50B	1.40B	1.28B	1.50B	1.10B
Cash Flow
Free Cash Flow	0	-525.27M	-41.59M	-354.97M	45.38M	163.71M
Operating Cash Flow	0	44.84M	34.69M	169.46M	210.00M	253.02M
Investing Cash Flow	0	-127.81M	-80.53M	-531.54M	-178.05M	-89.72M
Financing Cash Flow	0	-11.95M	160.15M	3.85M	327.63M	-48.61M

Seihyo Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1937.00

Price Trends

50DMA1921.28Positive

100DMA1963.18Negative

200DMA2030.60Negative

Market Momentum

MACD2.43Negative

RSI58.04Neutral

STOCH95.56Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2872, the sentiment is Positive. The current price of 1937.00 is above the 20-day moving average (MA) of 1921.70, above the 50-day MA of 1921.28, and below the 200-day MA of 2030.60, indicating a neutral trend. The MACD of 2.43 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 95.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2872.

Seihyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:2872 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3392	72Outperform	JPY 11.67B	9.20	―	3.49%	2.68%	-20.40%
JP:2871	72Outperform	JPY 594.05B	22.14	9.41%	2.08%	11.84%	3.20%
JP:2918	71Outperform	JPY 47.57B	11.92	―	4.38%	2.88%	3.21%
JP:2922	64Neutral	JPY 24.60B	11.09	―	1.43%	-0.42%	161.86%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:7475	58Neutral	JPY 32.68B	24.38	―	1.87%	0.57%	-13.40%
JP:2872	40Underperform	JPY 3.08B	-65.48	―	0.93%	16.96%	-143.18%

* Consumer Defensive Sector Average

Performance Comparison

JP:2872 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2872	Seihyo Co., Ltd.	1937.00	12.04	0.63%
JP:2871	Nichirei Corporation	2359.00	470.52	24.92%
JP:2918	WARABEYA NICHIYO HOLDINGS Co., Ltd.	2738.00	-427.93	-13.52%
JP:2922	Natori Co., Ltd.	1963.00	49.11	2.57%
JP:3392	DELICA FOODS HOLDINGS CO. LTD.	724.00	-79.72	-9.92%
JP:7475	ALBIS Co., Ltd.	3735.00	1042.86	38.74%

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: Nov 05, 2026

Seihyo Co., Ltd. AI Stock Analysis