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Pigeon Corporation (JP:7956)
:7956
Japanese Market
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Pigeon Corporation (7956) AI Stock Analysis

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JP:7956

Pigeon Corporation

(7956)

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Outperform 80 (OpenAI - 5.2)
Rating:80Outperform
Price Target:
¥2,370.00
▲(47.07% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by strong financial quality (especially a very low-leverage balance sheet and steady profitability). Technicals are supportive with a clear uptrend, though momentum looks somewhat extended (RSI > 70). Valuation is balanced: an attractive dividend yield offsets a mid-range P/E.
Positive Factors
Very low leverage
Pigeon's extremely low leverage and steadily growing equity provide durable financial flexibility. A conservative balance sheet reduces refinancing and solvency risk, supports stable dividends and opportunistic M&A or product investment, and cushions the business through consumer cycles over months.
Negative Factors
Weakened cash conversion
OCF/earnings below 1.0 indicates earnings are not fully converting to cash, likely from working-capital swings or higher investments. Persisting weak cash conversion reduces available free cash, constraining dividends, buybacks or reinvestment and raising funding risk over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Pigeon's extremely low leverage and steadily growing equity provide durable financial flexibility. A conservative balance sheet reduces refinancing and solvency risk, supports stable dividends and opportunistic M&A or product investment, and cushions the business through consumer cycles over months.
Read all positive factors

Pigeon Corporation (7956) vs. iShares MSCI Japan ETF (EWJ)

Pigeon Corporation Business Overview & Revenue Model

Company Description
Pigeon Corporation is a global enterprise engaged in the creation, production, distribution, import, and export of a wide array of goods tailored for infants, young children, new and expectant mothers, women's wellness, home healthcare needs, and ...
How the Company Makes Money
Pigeon makes money mainly by selling consumer products, with revenue generated from (1) baby and childcare items (e.g., feeding-related products, hygiene and skincare goods, and other infant-care consumables and durables) and (2) related healthcar...

Pigeon Corporation Financial Statement Overview

Summary
Financial profile is strong overall, led by an exceptionally conservative balance sheet (very low leverage and growing equity). Profitability is consistently solid with healthy gross and operating margins, though margins are below prior peaks. Cash flow remains positive, but recent cash conversion has softened (operating cash flow relative to earnings below 1.0 in 2024–2025), tempering the score.
Income Statement
77
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue111.65B109.17B104.17B94.46B94.92B93.08B
Gross Profit56.16B54.84B51.37B45.45B44.83B44.07B
EBITDA18.07B18.00B17.82B16.33B18.18B17.77B
Net Income8.55B8.57B8.37B7.42B8.58B8.79B
Balance Sheet
Total Assets109.76B110.09B108.31B100.44B101.73B98.04B
Cash, Cash Equivalents and Short-Term Investments34.93B39.61B39.20B34.36B34.28B35.22B
Total Debt4.89B1.36B1.77B2.72B2.06B1.38B
Total Liabilities25.32B24.20B23.70B19.35B21.78B21.23B
Stockholders Equity81.61B82.92B81.14B77.58B76.69B73.89B
Cash Flow
Free Cash Flow0.0010.26B12.21B9.04B7.89B5.23B
Operating Cash Flow0.0013.06B14.28B14.52B13.21B10.89B
Investing Cash Flow0.00-3.14B-1.14B-5.47B-5.66B-5.59B
Financing Cash Flow0.00-10.82B-10.64B-10.26B-9.67B-8.69B

Pigeon Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1611.50
Price Trends
50DMA
1883.46
Positive
100DMA
1752.28
Positive
200DMA
1685.79
Positive
Market Momentum
MACD
60.84
Positive
RSI
62.99
Neutral
STOCH
52.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7956, the sentiment is Positive. The current price of 1611.5 is below the 20-day moving average (MA) of 2009.55, below the 50-day MA of 1883.46, and below the 200-day MA of 1685.79, indicating a bullish trend. The MACD of 60.84 indicates Positive momentum. The RSI at 62.99 is Neutral, neither overbought nor oversold. The STOCH value of 52.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7956.

Pigeon Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥246.51B28.844.66%5.68%-2.85%
72
Outperform
¥564.15B16.0312.66%1.53%11.37%11.35%
70
Outperform
¥2.91T23.1011.50%2.41%3.60%13.80%
65
Neutral
¥411.23B134.335.37%1.95%3.14%-71.37%
65
Neutral
¥1.72T27.3210.79%3.47%-2.89%-31.75%
64
Neutral
¥453.65B16.659.09%1.73%3.10%27.99%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7956
Pigeon Corporation
2,060.50
433.34
26.63%
JP:4452
Kao
3,219.00
40.38
1.27%
JP:4967
Kobayashi Pharmaceutical Co
5,545.00
444.74
8.72%
JP:4912
Lion
1,671.50
231.91
16.11%
JP:4527
Rohto Pharmaceutical Co
2,430.00
398.57
19.62%
JP:8113
Unicharm
943.00
-51.19
-5.15%

Pigeon Corporation Corporate Events

Pigeon Posts Strong Q1 Sales Growth, Keeps 2026 Guidance and Dividend Plan Intact
May 14, 2026
Pigeon Corporation reported consolidated net sales of ¥27.7 billion for the first quarter of fiscal 2026, up 9.8% year on year, with operating and ordinary income rising more than 14%, while net income attributable to owners of the parent dip...
Pigeon Posts Higher Q1 Sales and Profit, Keeps 2026 Outlook and Dividend Target Intact
May 14, 2026
Pigeon Corporation reported consolidated net sales of ¥27.7 billion for the first quarter ended March 31, 2026, a 9.8% year-on-year increase, with operating income up 14.1% to ¥3.6 billion and ordinary income up 15.0% to ¥3.7 billio...
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: May 16, 2026