Buy Or Sell Opportunity • May 01
Now 21% overvalued Over the last 90 days, the stock has fallen 27% to JP¥1,179. The fair value is estimated to be JP¥978, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.3% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 14% in the next 2 years. Declared Dividend • Apr 11
Final dividend of JP¥15.00 announced Shareholders will receive a dividend of JP¥15.00. Ex-date: 29th June 2026 Payment date: 25th August 2026 Dividend yield will be 2.7%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (40% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 21% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 24% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Feb 17
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (26% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Feb 15
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥80.16 (up from JP¥77.52 in FY 2024). Revenue: JP¥34.8b (up 9.4% from FY 2024). Net income: JP¥3.38b (up 3.6% from FY 2024). Profit margin: 9.7% (in line with FY 2024). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 2.4%. Revenue is forecast to grow 2.2% p.a. on average during the next 2 years, compared to a 3.4% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 58% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 13
Kanro Inc., Annual General Meeting, Mar 27, 2026 Kanro Inc., Annual General Meeting, Mar 27, 2026. Buy Or Sell Opportunity • Jan 15
Now 22% overvalued Over the last 90 days, the stock has fallen 7.7% to JP¥1,680. The fair value is estimated to be JP¥1,376, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.3% over the last 3 years. Earnings per share has grown by 31%. Revenue is forecast to grow by 7.6% in 2 years. Earnings are forecast to grow by 2.9% in the next 2 years. Buy Or Sell Opportunity • Dec 30
Now 21% overvalued Over the last 90 days, the stock has fallen 26% to JP¥1,657. The fair value is estimated to be JP¥1,370, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.3% over the last 3 years. Earnings per share has grown by 31%. Revenue is forecast to decline by 65% in 2 years. Earnings are forecast to grow by 18% in the next 2 years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 10 March 2026. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.1%). Announcement • Dec 05
Kanro Inc. to Report Fiscal Year 2025 Results on Feb 13, 2026 Kanro Inc. announced that they will report fiscal year 2025 results at 12:00 PM, Tokyo Standard Time on Feb 13, 2026 Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,652, the stock trades at a trailing P/E ratio of 20.7x. Average trailing P/E is 16x in the Food industry in Japan. Total returns to shareholders of 411% over the past three years. Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥1,455, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 16x in the Food industry in Japan. Total returns to shareholders of 377% over the past three years. Buy Or Sell Opportunity • Oct 29
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 20% to JP¥1,529. The fair value is estimated to be JP¥1,912, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has grown by 35%. Valuation Update With 7 Day Price Move • Oct 02
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,053, the stock trades at a trailing P/E ratio of 25.7x. Average trailing P/E is 16x in the Food industry in Japan. Total returns to shareholders of 645% over the past three years. Buy Or Sell Opportunity • Sep 22
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 52% to JP¥2,336. The fair value is estimated to be JP¥1,912, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has grown by 35%. Declared Dividend • Aug 26
First half dividend of JP¥16.00 announced Shareholders will receive a dividend of JP¥16.00. Ex-date: 29th December 2025 Payment date: 10th March 2026 Dividend yield will be 3.0%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by both earnings (43% earnings payout ratio) and cash flows (55% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 39% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥1,980, the stock trades at a trailing P/E ratio of 25.2x. Average trailing P/E is 16x in the Food industry in Japan. Total returns to shareholders of 644% over the past three years. Buy Or Sell Opportunity • Jul 30
Now 27% overvalued after recent price rise Over the last 90 days, the stock has risen 34% to JP¥1,829. The fair value is estimated to be JP¥1,445, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.3% over the last 3 years. Earnings per share has grown by 37%. New Risk • Jul 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. New Risk • Jun 26
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 211% Dividend yield: 6.0% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 26 August 2025. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (4.0%). In line with average of industry peers (2.2%). Valuation Update With 7 Day Price Move • May 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥4,310, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 17x in the Food industry in Japan. Total returns to shareholders of 460% over the past three years. Announcement • May 23
Kanro Inc. Revises Dividend Guidance for the Fiscal Year Ending December 31, 2025 In accordance with the share split, Kanro Inc. will revise the dividend forecast per share stated in the "Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2024 [Japanese GAAP]" published on February 6, 2025, as follows. Since the effective date of the share split is July 1, 2025, the interim dividend at the end of the second quarter of the fiscal year ending December 31, 2025 with a record date of June 30, 2025 is based on the number of shares before the share split. This revision is due to the increase in the total number of issued shares resulting from the share split; therefore, there is no significant change to the year-end dividend forecast per share or the total amount of annual dividends. Dividend per share at the end of the fiscal year ending December 31, 2025 is based on the revised number of shares after the share split; therefore, the dividend will be JPY 16.00 per share, which is one-third of the previous forecast of JPY 48.00 per share. Reported Earnings • Apr 28
First quarter 2025 earnings released: EPS: JP¥70.71 (vs JP¥67.50 in 1Q 2024) First quarter 2025 results: EPS: JP¥70.71 (up from JP¥67.50 in 1Q 2024). Revenue: JP¥8.21b (up 7.8% from 1Q 2024). Net income: JP¥993.2m (up 5.5% from 1Q 2024). Profit margin: 12% (in line with 1Q 2024). Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has increased by 72% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥3,470, the stock trades at a trailing P/E ratio of 15x. Average trailing P/E is 16x in the Food industry in Japan. Total returns to shareholders of 399% over the past three years. Declared Dividend • Apr 11
Final dividend increased to JP¥45.00 Dividend of JP¥45.00 is 29% higher than last year. Ex-date: 27th June 2025 Payment date: 26th August 2025 Dividend yield will be 3.0%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by both earnings (40% earnings payout ratio) and cash flows (70% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 38% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Feb 06
Kanro Inc., Annual General Meeting, Mar 28, 2025 Kanro Inc., Annual General Meeting, Mar 28, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 11 March 2025. Payout ratio is a comfortable 31% and the cash payout ratio is 100%. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (2.5%). Buy Or Sell Opportunity • Dec 17
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.0% to JP¥3,260. The fair value is estimated to be JP¥4,147, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 43%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to decline by 3.5% in the next 2 years. Announcement • Aug 21
Kanro Inc. Declares Dividend for the First Half Ended June 30, 2024, Payable on August 26, 2024 Kanro Inc. declared dividend for the first half ended June 30, 2024. For the first half, the company announced to pay dividend of JPY 35.00 per share against JPY 20.00 per share a year ago. Scheduled date of commencing dividend payments is August 26, 2024. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥2,531, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Food industry in Japan. Total returns to shareholders of 275% over the past three years. Declared Dividend • Jul 31
Dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 27th December 2024 Payment date: 11th March 2025 Dividend yield will be 2.8%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is well covered by both earnings (32% earnings payout ratio) and cash flows (48% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 26% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Jun 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jun 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,760, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 16x in the Food industry in Japan. Total returns to shareholders of 301% over the past three years. Board Change • May 20
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 4 experienced directors. 1 highly experienced director. Independent External Director Takanobu Yoshida is the most experienced director on the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥2,278, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 18x in the Food industry in Japan. Total returns to shareholders of 237% over the past three years. New Risk • Apr 26
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Declared Dividend • Apr 11
Final dividend of JP¥30.00 announced Shareholders will receive a dividend of JP¥30.00. Ex-date: 27th June 2024 Payment date: 26th August 2024 Dividend yield will be 2.4%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (48% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 10
Kanro Inc., Annual General Meeting, Mar 28, 2024 Kanro Inc., Annual General Meeting, Mar 28, 2024. Buy Or Sell Opportunity • Feb 09
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 4.6% to JP¥2,412. The fair value is estimated to be JP¥1,941, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has grown by 44%. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,212, the stock trades at a trailing P/E ratio of 15.7x. Average trailing P/E is 18x in the Food industry in Japan. Total returns to shareholders of 220% over the past three years. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥30.00 per share at 2.9% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 11 March 2024. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.8%). Announcement • Nov 24
Kanro Inc. Revises Non-Consolidated Earnings Guidance for the Full Year Ending December 31, 2023 Kanro Inc. revised non-consolidated earnings guidance for the full year ending December 31, 2023. For the full year, the company now expects net sales of JPY 28,500 million, operating profit of JPY 2,940 million, profit of JPY 2,050 million or JPY 147.25 per basic share against net sales of JPY 27,700 million, operating profit of JPY 2,450 million, profit of JPY 1,680 million or JPY 121.13 per basic share as previously forecasted. Announcement • Nov 22
Kanro Inc. Revises Year-End Dividend Guidance for the Fiscal Year Ending December 31, 2023 Kanro Inc. revised year-end dividend guidance for the fiscal year ending December 31, 2023. For the year, the company now expects to pay year-end dividend of JPY 30.00 per share against JPY 14.00 per share paid for the same period a year ago. The company previously forecasted year-end dividend of JPY 22.00 per share. Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥2,324, the stock trades at a trailing P/E ratio of 17.5x. Average trailing P/E is 20x in the Food industry in Japan. Total returns to shareholders of 228% over the past three years. Reported Earnings • Aug 26
Second quarter 2023 earnings released: EPS: JP¥28.40 (vs JP¥16.36 in 2Q 2022) Second quarter 2023 results: EPS: JP¥28.40 (up from JP¥16.36 in 2Q 2022). Revenue: JP¥6.78b (up 12% from 2Q 2022). Net income: JP¥394.0m (up 71% from 2Q 2022). Profit margin: 5.8% (up from 3.8% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. New Risk • Jul 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥20.00 per share at 2.0% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 28 August 2023. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.7%). Reported Earnings • May 27
First quarter 2023 earnings released: EPS: JP¥60.77 (vs JP¥35.40 in 1Q 2022) First quarter 2023 results: EPS: JP¥60.77 (up from JP¥35.40 in 1Q 2022). Revenue: JP¥7.52b (up 25% from 1Q 2022). Net income: JP¥842.9m (up 69% from 1Q 2022). Profit margin: 11% (up from 8.3% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 37% per year whereas the company’s share price has increased by 34% per year. Valuation Update With 7 Day Price Move • May 01
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥1,551, the stock trades at a trailing P/E ratio of 16x. Average trailing P/E is 19x in the Food industry in Japan. Total returns to shareholders of 126% over the past three years. Announcement • Feb 09
Kanro Inc., Annual General Meeting, Mar 28, 2023 Kanro Inc., Annual General Meeting, Mar 28, 2023. Buying Opportunity • Jan 13
Now 20% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be JP¥1,358, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.3% over the last 3 years. Earnings per share has grown by 31%. Buying Opportunity • Dec 29
Now 23% undervalued Over the last 90 days, the stock is up 27%. The fair value is estimated to be JP¥1,467, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.3% over the last 3 years. Earnings per share has grown by 31%. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥17.50 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 10 March 2023. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.7%). Valuation Update With 7 Day Price Move • Dec 19
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,374, the stock trades at a trailing P/E ratio of 13.8x. Average trailing P/E is 19x in the Food industry in Japan. Total returns to shareholders of 77% over the past three years. Announcement • Dec 06
Kanro Inc. to Report Q3, 2023 Results on Oct 27, 2023 Kanro Inc. announced that they will report Q3, 2023 results on Oct 27, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Hiromi Horie was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 30
Second quarter 2022 earnings released: EPS: JP¥16.36 (vs JP¥18.35 in 2Q 2021) Second quarter 2022 results: EPS: JP¥16.36 (down from JP¥18.35 in 2Q 2021). Revenue: JP¥6.07b (down 2.1% from 2Q 2021). Net income: JP¥231.0m (down 11% from 2Q 2021). Profit margin: 3.8% (down from 4.2% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. 
