BASE FOOD Inc. (2936) AI Stock Analysis

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BASE FOOD Inc.

(TSE/TYO:2936)

Select Model

Rating:55Neutral

Price Target:JPY 245.00▲(2.08% Upside)

Action:reiterated

Date:09/06/26

The overall score is constrained by a very high valuation and weak technical trends. The company's significant financial turnaround, marked by positive cash flows and a stronger balance sheet, is a key strength, but it is offset by a recent revenue decline and thin profit margins. The stock trades below key moving averages, and the lack of a dividend adds to the unattractive valuation.

Positive Factors

Profitability turnaroundThe return to positive operating profit and net income after losses in 2022–2024 indicates meaningful improvement in operating execution. Further expansion in 2026 strengthens the evidence that the business model can convert its scaled revenue base into sustainable earnings over the coming quarters.

Negative Factors

Revenue contractionThe 2026 revenue decline interrupts the company’s earlier expansion and raises questions about sustained demand, repeat purchases, and distribution growth. If the top-line stall persists, it could limit operating leverage and make the recent profitability improvement harder to maintain.

BASE FOOD Inc. (2936) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 12.97B
Dividend Yield: ―
Average Volume (3M): 38.63K
Price to Earnings (P/E): 230.8
Beta (1Y): 0.52
Revenue Growth: 3.21%
EPS Growth: -90.33%
Country: Japan
Employees: 98
Sector: General
Sector Strength: 55
Industry: Packaged Foods

BASE FOOD Inc. Business Overview & Revenue Model

Company Description

BASE FOOD Inc. develops and sells nutritional food in Japan. It offers bread, pasta, cookies, pancake mix, and yakisoba. The company sells its products through company-owned e-commerce, other e-commerce platforms, and wholesale channels. The company...

How the Company Makes Money

BASE FOOD Inc. generates revenue primarily through the sale of its own branded food products. The company’s key revenue streams include (1) direct-to-consumer (D2C) e-commerce sales, where it sells products via its online store and may generate recur...

BASE FOOD Inc. Financial Statement Overview

Summary

Financial performance is mixed but improving. Cash flow is strong (Score 80) with operating cash flow turning positive and growing 96%. The balance sheet is stable (Score 65) with reduced leverage. However, the income statement (Score 55) shows a recent revenue decline and thin margins, tempering the overall financial picture.

Income Statement

55Neutral

Balance Sheet

65Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	15.85B	15.19B	15.24B	14.87B	9.86B	5.55B
Gross Profit	8.89B	8.60B	8.38B	7.40B	5.27B	3.27B
EBITDA	190.13M	283.73M	200.47M	-868.35M	-954.14M	-452.30M
Net Income	55.27M	262.37M	108.95M	-856.02M	-1.01B	-463.07M
Balance Sheet
Total Assets	4.08B	4.01B	3.86B	3.28B	3.61B	1.59B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.89B	1.98B	1.43B	2.30B	837.00M
Total Debt	557.61M	641.65M	809.69M	508.25M	530.00M	60.00M
Total Liabilities	2.98B	2.66B	2.82B	2.44B	1.97B	945.73M
Stockholders Equity	1.11B	1.36B	1.04B	842.46M	1.64B	643.03M
Cash Flow
Free Cash Flow	0	134.09M	51.56M	-734.34M	-799.98M	-384.43M
Operating Cash Flow	0	255.42M	130.43M	-665.90M	-732.92M	-373.07M
Investing Cash Flow	0	-239.96M	34.93M	-229.44M	-265.40M	-46.12M
Financing Cash Flow	0	-111.72M	386.88M	29.66M	2.46B	966.42M

BASE FOOD Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price240.00

Price Trends

50DMA265.20Negative

100DMA269.22Negative

200DMA301.25Negative

Market Momentum

MACD-8.82Positive

RSI34.80Neutral

STOCH28.21Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2936, the sentiment is Negative. The current price of 240.00 is below the 20-day moving average (MA) of 250.40, below the 50-day MA of 265.20, and below the 200-day MA of 301.25, indicating a bearish trend. The MACD of -8.82 indicates Positive momentum. The RSI at 34.80 is Neutral, neither overbought nor oversold. The STOCH value of 28.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2936.

BASE FOOD Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:2936 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2875	79Outperform	JPY 1.05T	13.74	14.12%	2.09%	7.07%	18.12%
JP:2002	74Outperform	JPY 640.52B	16.83	―	2.58%	2.60%	69.40%
JP:2212	72Outperform	JPY 810.53B	18.86	9.18%	1.46%	4.78%	11.17%
JP:2918	71Outperform	JPY 46.63B	11.86	―	4.41%	2.88%	3.21%
JP:2897	67Neutral	JPY 855.32B	22.84	9.39%	2.44%	6.72%	-5.78%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:2936	55Neutral	JPY 12.76B	230.77	―	―	3.21%	-90.33%

* General Sector Average

Performance Comparison

JP:2936 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2936	BASE FOOD Inc.	240.00	-110.00	-31.43%
JP:2897	Nissin Foods Holdings Co	2872.00	55.99	1.99%
JP:2875	Toyo Suisan Kaisha	10505.00	375.84	3.71%
JP:2212	Yamazaki Baking Co	4116.00	977.80	31.16%
JP:2002	Nisshin Seifun Group Inc.	2399.50	632.29	35.78%
JP:2918	WARABEYA NICHIYO HOLDINGS Co., Ltd.	2724.00	-393.81	-12.63%

BASE FOOD Inc. Corporate Events

BASE FOOD Narrows Path to Profit Amid Rising Sales and Weak Equity Buffer

Oct 15, 2026

BASE FOOD Inc., a Tokyo-listed producer of nutritionally balanced staple foods, reported non-consolidated net sales of ¥8.35 billion for the six months to August 31, 2026, up 8.5% year on year, but posted an interim net loss of ¥255 million as operat...

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 06, 2026

BASE FOOD Inc. AI Stock Analysis