TSE:2292Food
S Foods (TSE:2292) Profit Surges on One-Off Gain, Raising Earnings Quality Questions
S Foods (TSE:2292) delivered a net profit margin of 1.2%, improving from last year’s 0.7%. Earnings surged 79.4% over the past year, far outpacing the company’s five-year average decline of 17.8% annually. This jump was mainly driven by a one-off gain of ¥3.8 billion. The stock is trading at ¥2,549, which is above its estimated fair value of ¥2,476.19 and at a price-to-earnings ratio of 14.4x. This ratio is below the Japanese food industry average but higher than its peer group.
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