Kikkoman (KIKOY) AI Stock Analysis

• Market Cap: $8.93B
• Dividend Yield: 1.11%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.53
• Revenue Growth: 1.77%
• EPS Growth: 4.28%
• Country: US
• Employees: 7,521
• Sector: Consumer Defensive
• Sector Strength: 74
• Industry: Packaged Foods
• EPS (TTM): 0.85
• Shares Outstanding: 484,708,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 2.13
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ―

Kikkoman's solid financial performance, characterized by strong revenue growth and effective cash flow management, is a major strength. The mixed technical indicators suggest caution in the short term, while the valuation indicates the stock is fairly priced. The lack of recent earnings call data or significant corporate events leaves these aspects neutral in the assessment.

Kikkoman Business Overview & Revenue Model

Company Description

Kikkoman Corporation, through its subsidiaries, manufactures and sells food products in Japan, North America, and internationally. The company offers soy sauces, soy sauce soup bases, dipping and marinade sauces, handy seasoning mixes, and Del Monte seasonings; soy milk and Del Monte beverages; sweet sake for cooking; and wines. It also manufactures and sells canned fruits, canned corn, and tomato ketchup, as well as health foods; and purchases and sells oriental food products. In addition, the company produces and sells clinical diagnostic reagents, hygiene inspection agents, and processing enzymes, as well as chemical products, including hyaluronic acid; and offers real estate rental, logistics, and back-office support services. It serves home, and industrial and food service sectors. The company was formerly known as Kikkoman Shoyu Co., Ltd. and changed its name to Kikkoman Corporation in 1980. Kikkoman Corporation was founded in 1917 and is headquartered in Noda, Japan.

How the Company Makes Money

Kikkoman Corporation generates revenue through multiple streams, primarily driven by the sale of its soy sauce and other seasonings, which are distributed globally to both individual consumers and commercial clients such as restaurants and food manufacturers. The company's revenue model is diversified through its various product lines, including soy milk and health foods, expanding its market presence beyond traditional soy sauce offerings. Additionally, Kikkoman benefits from strategic partnerships and joint ventures, enhancing its distribution capabilities and market access across different regions. These partnerships often involve collaborations with local distributors and retailers, ensuring the widespread availability of Kikkoman products. Another significant contributor to its earnings is its restaurant business, which provides a platform for showcasing its products and capturing a share of the dining-out market.

Kikkoman Financial Statement Overview

Summary

Kikkoman's financial health is strong with consistent revenue growth, solid profitability, and effective cash flow management. The company's stable balance sheet and strategic financial practices position it well within the consumer products industry. While the financials are robust, ongoing attention to profit margins and strategic cash flow management will be critical for continued success.

Income Statement

Kikkoman has demonstrated strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin is robust, reflecting effective cost management. The EBIT and EBITDA margins are healthy, signifying efficient core operations. However, a slight concern is the net profit margin, which, while positive, indicates room for improvement in converting revenue to profit.

Balance Sheet

The company maintains a strong equity base, evidenced by a high equity ratio. The debt-to-equity ratio is low, indicating conservative leverage practices. Return on equity is commendable, showing effective use of shareholders' capital. The balance sheet reflects stability, but there is a need for cautious monitoring of asset-to-liability management to sustain growth.

Cash Flow

Operating cash flow has consistently increased, supporting the company's ability to fund operations and investments. The free cash flow growth rate is positive, indicating efficient capital expenditure management. The ratios of operating and free cash flow to net income are strong, underscoring good cash conversion. However, fluctuations in free cash flow suggest a need for strategic financial planning.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
680.54B	660.84B	618.90B	516.44B	439.41B	439.63B
	Gross Profit
234.96B	228.72B	195.64B	171.02B	146.69B	145.27B
	EBIT
76.30B	73.40B	58.78B	52.27B	42.65B	38.04B
	EBITDA
102.04B	93.72B	80.13B	69.92B	62.34B	57.41B
	Net Income Common Stockholders
63.87B	56.44B	43.73B	38.90B	31.16B	26.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.16B	150.78B	99.35B	79.23B	55.68B	28.10B
	Total Assets
667.88B	667.88B	566.38B	503.06B	438.51B	398.70B
	Total Debt
59.91B	59.91B	50.98B	43.46B	41.66B	42.68B
	Net Debt
-59.25B	-59.25B	-48.36B	-35.77B	-14.02B	14.58B
	Total Liabilities
169.62B	169.62B	149.41B	139.15B	124.99B	121.15B
	Stockholders Equity
491.36B	491.36B	410.51B	357.82B	308.13B	272.26B
Cash Flow		Free Cash Flow
43.53B	49.74B	32.65B	32.53B	40.10B	15.93B
	Operating Cash Flow
67.68B	80.81B	59.20B	52.09B	57.17B	41.96B
	Investing Cash Flow
-41.14B	-42.99B	-26.62B	-16.11B	-16.89B	-28.78B
	Financing Cash Flow
-18.07B	-31.42B	-20.38B	-17.90B	-15.42B	-11.40B

Kikkoman Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIKOY, the sentiment is Negative. The current price of 18.88 is below the 20-day moving average (MA) of 19.45, below the 50-day MA of 19.91, and below the 200-day MA of 21.32, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 5.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIKOY.

Kikkoman Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INGR	75 Outperform	$8.97B	14.72	16.31%	2.28%	-6.88%	-4.93%
KIKOY	74 Outperform	$8.93B	21.88	12.17%	1.11%	1.77%	4.28%
CAG	68 Neutral	$10.93B	33.51	3.67%	6.11%	-3.15%	-65.38%
MKC	67 Neutral	$19.25B	24.65	14.73%	2.42%	0.40%	10.89%
CPB	66 Neutral	$10.24B	19.78	13.43%	4.43%	9.15%	-31.94%
Sector *	65 Neutral	$8.86B	14.97	4.70%	203.29%	3.53%	-2.11%
SJM	58 Neutral	$12.12B	22.22	-3.55%	3.77%	7.07%	-181.54%