Kobe Bussan Co., Ltd. (3038) AI Stock Analysis

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Kobe Bussan Co., Ltd.

(TSE/TYO:3038)

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Rating:74Outperform

Price Target:JPY 3,547.00▲(20.93% Upside)

Action:upgraded

Date:08/06/26

The score is driven primarily by strong financial performance (healthy profitability, low leverage, and strong cash conversion). Technicals are mixed, with constructive short-term positioning but a weaker longer-term trend versus the 100- and 200-day averages. Valuation is reasonable with a modest dividend yield, providing some support but not a major catalyst.

Positive Factors

Low leverage and strong capital structureLow leverage and a 62.04% equity ratio give Kobe Bussan financial flexibility to support operations and growth. A solid capital base also reduces balance-sheet strain and helps the company remain resilient if trading conditions become less favorable over the next several quarters.

Negative Factors

Declining earnings per shareNegative EPS growth signals that shareholder-level earnings have weakened despite the company’s broader profitability. If this persists, it could reduce the pace of earnings compounding and constrain the ability of the business to translate operational scale into improving per-share results.

Kobe Bussan Co., Ltd. (3038) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 650.61B
Dividend Yield: 1.09%
Average Volume (3M): 2.19M
Price to Earnings (P/E): 22.4
Beta (1Y): -0.45
Revenue Growth: 5.70%
EPS Growth: -11.67%
Country: Japan
Employees: 1,674
Sector: Consumer Defensive
Sector Strength: 62
Industry: Grocery Stores

Kobe Bussan Co., Ltd. Business Overview & Revenue Model

Company Description

Kobe Bussan Co., Ltd. primarily engages in the manufacture, wholesale, and retail food products, and franchise supermarket chain in Japan. The company offers a range of food products through its Gyomu superstores. It also operates a chain of buffet r...

How the Company Makes Money

Kobe Bussan primarily makes money through a multi-layered model centered on the "Gyomu Super" franchise system. (1) Franchise-related earnings: The company supplies products to franchise stores and earns revenue from selling merchandise to these stor...

Kobe Bussan Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by solid income statement profitability (gross margin 11.81%, net margin 5.78%, EBITDA margin 9.66%), low leverage (debt-to-equity 0.19), and good returns (ROE 19.75%). Cash flow quality is also strong (operating cash flow to net income 1.32; free cash flow to net income 1.04).

Income Statement

85Very Positive

Balance Sheet

78Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	573.08B	551.70B	507.88B	461.55B	406.81B	362.06B
Gross Profit	69.31B	65.14B	57.22B	51.95B	45.92B	42.63B
EBITDA	43.92B	53.28B	37.92B	35.21B	36.01B	33.08B
Net Income	29.03B	31.88B	21.44B	20.56B	20.83B	19.59B
Balance Sheet
Total Assets	286.27B	260.19B	233.39B	211.89B	180.28B	156.74B
Cash, Cash Equivalents and Short-Term Investments	151.71B	131.01B	107.31B	92.63B	69.07B	57.83B
Total Debt	27.81B	30.13B	37.00B	38.32B	34.54B	34.69B
Total Liabilities	92.04B	98.79B	100.61B	97.44B	83.05B	78.51B
Stockholders Equity	179.72B	161.40B	132.77B	114.45B	97.22B	78.22B
Cash Flow
Free Cash Flow	0	33.03B	20.66B	21.66B	10.48B	3.27B
Operating Cash Flow	0	42.11B	30.77B	30.34B	21.58B	21.26B
Investing Cash Flow	0	-8.92B	-10.18B	-6.82B	-12.48B	-17.41B
Financing Cash Flow	0	-11.10B	-5.59B	80.00M	-3.75B	-16.53B

Kobe Bussan Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2933.00

Price Trends

50DMA2922.62Positive

100DMA2792.03Positive

200DMA3059.06Negative

Market Momentum

MACD-2.48Positive

RSI49.99Neutral

STOCH8.69Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3038, the sentiment is Positive. The current price of 2933.00 is above the 20-day moving average (MA) of 2932.85, above the 50-day MA of 2922.62, and below the 200-day MA of 3059.06, indicating a neutral trend. The MACD of -2.48 indicates Positive momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 8.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3038.

Kobe Bussan Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:3038 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3038	74Outperform	JPY 650.61B	22.40	17.21%	1.09%	5.70%	-11.67%
JP:8198	71Outperform	JPY 98.65B	12.60	―	2.74%	0.90%	-28.84%
JP:7596	66Neutral	JPY 29.44B	21.28	―	2.46%	15.49%	3.69%
JP:8194	66Neutral	JPY 213.70B	19.73	―	2.75%	2.59%	0.10%
JP:9974	65Neutral	JPY 135.63B	12.18	―	1.97%	4.94%	-9.98%
JP:2742	63Neutral	JPY 78.02B	8.60	―	1.98%	6.48%	0.54%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

* Consumer Defensive Sector Average

Performance Comparison

JP:3038 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3038	Kobe Bussan Co., Ltd.	2933.00	-605.05	-17.10%
JP:2742	Halows Co., Ltd.	3640.00	-663.41	-15.42%
JP:7596	Uoriki Co., Ltd.	2110.00	-135.78	-6.05%
JP:8194	Life Corporation	2470.00	111.07	4.71%
JP:8198	Maxvalu Tokai Co., Ltd.	3100.00	-316.51	-9.26%
JP:9974	BELC Co., Ltd.	6500.00	-614.82	-8.64%

Kobe Bussan Co., Ltd. Corporate Events

Kobe Bussan Details FY2026 Q3 Results and Integrated Food Strategy

Sep 11, 2026

Kobe Bussan released presentation materials for its FY2026 third-quarter consolidated financial results, outlining performance highlights and forecasts, as well as shareholder return policies. The disclosure suggests a focus on strengthening operatio...

Kobe Bussan Grows Sales but Profit Slips, Raises Dividend and Adds Subsidiaries

Sep 11, 2026

Kobe Bussan reported consolidated net sales of ¥432.9 billion for the nine months ended July 31, 2026, up 5.2% year on year, with operating profit rising 3.2% to ¥31.3 billion but ordinary profit and profit attributable to owners of parent...

Kobe Bussan Posts Strong July Sales but Ordinary Profit Slumps as Gyomu Super Network Expands

Aug 19, 2026

Kobe Bussan reported non-consolidated July 2026 net sales of ¥50.64 billion, up 7.6% year-on-year, with gross profit also higher but operating profit growth lagging and ordinary profit falling sharply to ¥1.36 billion, just 19.3% of the pri...

Kobe Bussan Posts Strong June Sales as Gyomu Super Network Grows

Jul 22, 2026

Kobe Bussan reported non-consolidated monthly figures for June 2026 showing net sales of ¥47.5 billion, up 5.4% year on year, while gross profit and operating profit margins were under pressure, with operating profit down 12% year on year. Ordin...

Kobe Bussan Elevates MEAL HUB to Specified Subsidiary with ¥58 Billion Capital Boost

Jun 24, 2026

Kobe Bussan has approved a major capital increase for its joint venture MEAL HUB Co., Ltd., established with Gourmet Kineya, to fund acquisitions in the airline catering sector. Following the transaction, MEAL HUB’s stated capital will rise sig...

Kobe Bussan Posts Higher May Sales Amid Softer Profits and Steady Gyomu Super Expansion

Jun 23, 2026

Kobe Bussan reported non-consolidated results for May 2026 showing net sales of ¥49.86 billion, up 3.0% year-on-year, while gross profit and operating profit growth moderated, with operating profit down to ¥2.89 billion and 83.5% of the pri...

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: Aug 06, 2026

Kobe Bussan Co., Ltd. AI Stock Analysis

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