TSE:2003Food
Nitto Fuji Flour Milling (TSE:2003) Margin Decline Challenges Premium Valuation Narrative
Nitto Fuji Flour Milling Ltd (TSE:2003) reported a net profit margin of 4.7%, down from 5.6% the previous year. This breaks its multi-year trend of 1.4% annual earnings growth. Shares are trading at ¥6,950, above the estimated fair value of ¥6,075.34. The company’s P/E ratio of 18.5x is higher than both its peer group average of 15.4x and the Japanese Food industry average of 16.3x. Margins have slipped and earnings growth turned negative, signaling that investors may be scrutinizing the...