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2871

Nichirei TSE:2871 Stock Report

Last Price

JP¥2.37k

Market Cap

JP¥306.9b

7D

1.2%

1Y

-18.2%

Updated

05 Jul, 2022

Data

Company Financials +
2871 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

2871 Stock Overview

Nichirei Corporation engages in the processed foods, marine products, meat and poultry products, logistics, real estate, and biosciences businesses in Japan.

Nichirei Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nichirei
Historical stock prices
Current Share PriceJP¥2,370.00
52 Week HighJP¥3,080.00
52 Week LowJP¥2,171.00
Beta-0.10
1 Month Change2.73%
3 Month Change-0.71%
1 Year Change-18.16%
3 Year Change-11.24%
5 Year Change-26.63%
Change since IPO54.90%

Recent News & Updates

Shareholder Returns

2871JP FoodJP Market
7D1.2%0.7%-0.7%
1Y-18.2%4.4%-4.5%

Return vs Industry: 2871 underperformed the JP Food industry which returned 3.9% over the past year.

Return vs Market: 2871 underperformed the JP Market which returned -5.7% over the past year.

Price Volatility

Is 2871's price volatile compared to industry and market?
2871 volatility
2871 Average Weekly Movement2.5%
Food Industry Average Movement2.8%
Market Average Movement4.1%
10% most volatile stocks in JP Market8.3%
10% least volatile stocks in JP Market2.2%

Stable Share Price: 2871 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2871's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194215,296Kenya Okushihttps://www.nichirei.co.jp

Nichirei Corporation engages in the processed foods, marine products, meat and poultry products, logistics, real estate, and biosciences businesses in Japan. It offers frozen foods, acerola products, packed ice, agricultural processed foods, wellness foods, and retort-pouch foods. The company also provides refrigerated warehouse, transport, delivery, and logistics consulting services, as well as produces and sells ice.

Nichirei Fundamentals Summary

How do Nichirei's earnings and revenue compare to its market cap?
2871 fundamental statistics
Market CapJP¥306.88b
Earnings (TTM)JP¥23.38b
Revenue (TTM)JP¥602.70b

13.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2871 income statement (TTM)
RevenueJP¥602.70b
Cost of RevenueJP¥500.45b
Gross ProfitJP¥102.25b
Other ExpensesJP¥78.86b
EarningsJP¥23.38b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)180.58
Gross Margin16.96%
Net Profit Margin3.88%
Debt/Equity Ratio41.4%

How did 2871 perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2871 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2871?

Other financial metrics that can be useful for relative valuation.

2871 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA7.5x
PEG Ratio5.1x

Price to Earnings Ratio vs Peers

How does 2871's PE Ratio compare to its peers?

2871 PE Ratio vs Peers
The above table shows the PE ratio for 2871 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.3x
2811 Kagome
29.3x-0.004%JP¥290.5b
2229 Calbee
19.8x1.5%JP¥358.1b
2212 Yamazaki Baking
31.5x5.0%JP¥353.8b
2810 House Foods Group
20.6x1.7%JP¥287.0b
2871 Nichirei
13.1x2.6%JP¥306.9b

Price-To-Earnings vs Peers: 2871 is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (25.3x).


Price to Earnings Ratio vs Industry

How does 2871's PE Ratio compare vs other companies in the JP Food Industry?

Price-To-Earnings vs Industry: 2871 is good value based on its Price-To-Earnings Ratio (13.1x) compared to the JP Food industry average (15.1x)


Price to Earnings Ratio vs Fair Ratio

What is 2871's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2871 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: 2871 is good value based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).


Share Price vs Fair Value

What is the Fair Price of 2871 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2871 (¥2370) is trading below our estimate of fair value (¥3342.53)

Significantly Below Fair Value: 2871 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 2871 is poor value based on its PEG Ratio (5.1x)


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Future Growth

How is Nichirei forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2871's forecast earnings growth (2.6% per year) is above the savings rate (0.04%).

Earnings vs Market: 2871's earnings (2.6% per year) are forecast to grow slower than the JP market (9% per year).

High Growth Earnings: 2871's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2871's revenue (2.6% per year) is forecast to grow slower than the JP market (4.5% per year).

High Growth Revenue: 2871's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2871's Return on Equity is forecast to be low in 3 years time (9.6%).


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Past Performance

How has Nichirei performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2871 has high quality earnings.

Growing Profit Margin: 2871's current net profit margins (3.9%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: 2871's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 2871's earnings growth over the past year (10.2%) exceeds its 5-year average (4% per year).

Earnings vs Industry: 2871 earnings growth over the past year (10.2%) exceeded the Food industry 5.9%.


Return on Equity

High ROE: 2871's Return on Equity (11.1%) is considered low.


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Financial Health

How is Nichirei's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2871's short term assets (¥180.3B) exceed its short term liabilities (¥120.8B).

Long Term Liabilities: 2871's short term assets (¥180.3B) exceed its long term liabilities (¥88.9B).


Debt to Equity History and Analysis

Debt Level: 2871's net debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: 2871's debt to equity ratio has reduced from 43.2% to 41.4% over the past 5 years.

Debt Coverage: 2871's debt is well covered by operating cash flow (38.4%).

Interest Coverage: 2871 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Nichirei current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2871's dividend (2.19%) is higher than the bottom 25% of dividend payers in the JP market (1.69%).

High Dividend: 2871's dividend (2.19%) is low compared to the top 25% of dividend payers in the JP market (3.7%).


Stability and Growth of Payments

Stable Dividend: 2871's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2871's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.3%), 2871's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (56.3%), 2871's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Kenya Okushi (66 yo)

3.25yrs

Tenure

Mr. Kenya Okushi serves as Representative Director and President at Nichirei Corporation since April 2019. Mr. Okushi joined Nichirei in April 1988. Mr. Okushi served as Executive Officer and Director of N...


Leadership Team

Experienced Management: 2871's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: 2871's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nichirei Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Nichirei Corporation
  • Ticker: 2871
  • Exchange: TSE
  • Founded: 1942
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: JP¥306.879b
  • Shares outstanding: 129.48m
  • Website: https://www.nichirei.co.jp

Number of Employees


Location

  • Nichirei Corporation
  • Nichirei Higashi-Ginza Building
  • 6-19-20 Tsukiji
  • Tokyo
  • 104-8402
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.