Calbee Inc

Calbee Inc maintains a strong liquidity position, with a current ratio of 2.27 and cash and equivalents amounting to ¥44.61 billion, which provides a buffer against short-term obligations. The company's debt-to-equity ratio is 0.18, indicating a conservative capital structure with limited leverage. However, the company reported negative free cash flow of ¥1.17 billion, driven by capital expenditures of ¥5.01 billion, which may signal ongoing investment in operations or expansion.

In terms of profitability, Calbee Inc's return on equity (ROE) of 3.63% and return on assets (ROA) of 2.29% are below the typical thresholds for high-performing food processing firms. These metrics suggest that the company is generating modest returns relative to its equity and asset base, which could indicate inefficiencies or a competitive disadvantage in the industry.

The company's revenue is concentrated in the Asia-Pacific region, where it operates a significant portion of its business. While the input data does not provide a breakdown of revenue by segment or geography, the company's exposure to this region may make it vulnerable to regional economic fluctuations and regulatory changes. The lack of diversification could pose a risk if demand in the Asia-Pacific market weakens.

Looking ahead, Calbee Inc's growth trajectory appears to be modest. Analysts have assigned a mean price target of ¥3,100 and a median price target of ¥3,000, with a mean recommendation of 3.33, indicating a "hold" consensus. The absence of strong buy or buy ratings suggests limited upside potential in the near term. The company's operating income of ¥7.64 billion and net income of ¥7.07 billion in the latest reporting period provide a baseline for assessing future performance.

Risk factors for Calbee Inc include the potential for dilution, although the risk is currently assessed as low. The company has not issued new shares recently, and there are no immediate filing-based liquidity or dilution flags. However, the negative free cash flow and capital expenditures may signal a need for additional financing in the future, which could lead to share dilution. The company's conservative debt levels and strong liquidity position mitigate some of these risks.

Recent events and disclosures do not indicate any significant changes in the company's operations or financial strategy. The company's financial performance and risk profile remain stable, with no major disruptions reported in the latest filings or transcripts. The absence of strong buy or buy ratings from analysts suggests that the market is not overly optimistic about the company's near-term prospects.

Revenue grew at an 8.5% CAGR over four years, demonstrating consistent top-line expansion for the food processing company.

Operating margins of 9.8% significantly exceed the 5.7% cohort median, indicating superior profitability relative to peers.

Analysts project 9.9% upside to a mean price target of 3,100 JPY, suggesting undervaluation relative to current market price.

Free cash flow surged 440.2% year-over-year to 2.4 billion JPY, signaling a strong recovery in cash generation.

Return on equity of 3.6% trails the 5.0% cohort median, suggesting less efficient capital utilization compared to industry peers.

Long-term debt increased substantially to 38.0 billion JPY in FY2026, raising leverage concerns despite a low debt-to-equity ratio.

Cash conversion of 0.22 is well below the 0.98 cohort median, indicating weaker efficiency in converting earnings to cash.

Revenue ¥83.41B, +5,9% YoY; Operating income +57,1% YoY.

• ▍Revenue ¥83.41B, +5,9% YoY
• ▍Operating income +57,1% YoY
• ▍Net income +47,1% YoY
• ▍Free cash flow −27,4% YoY
• ▍Net margin 4.4%

Revenue ¥90.99B, +4,9% YoY; Operating income −6,5% YoY.

• ▍Revenue ¥90.99B, +4,9% YoY
• ▍Operating income −6,5% YoY
• ▍Net income −11,5% YoY
• ▍Free cash flow +54,6% YoY
• ▍Net margin 7.5%

Revenue ¥83.51B, +5,2% YoY; Operating income −33,5% YoY.

• ▍Revenue ¥83.51B, +5,2% YoY
• ▍Operating income −33,5% YoY
• ▍Net income −8,9% YoY
• ▍Free cash flow +86,4% YoY
• ▍Net margin 3.9%

Revenue ¥82.23B, +5,9% YoY; Operating income −31,3% YoY.

• ▍Revenue ¥82.23B, +5,9% YoY
• ▍Operating income −31,3% YoY
• ▍Net income −49,9% YoY
• ▍Free cash flow −649,2% YoY
• ▍Net margin 4.3%

Revenue ¥78.79B; Operating income ¥3.42B.

• ▍Revenue ¥78.79B
• ▍Operating income ¥3.42B
• ▍Net margin 3.2%

Revenue ¥86.71B; Operating income ¥10.22B.

• ▍Revenue ¥86.71B
• ▍Operating income ¥10.22B
• ▍Net margin 8.9%

Revenue ¥79.41B; Operating income ¥7.12B.

• ▍Revenue ¥79.41B
• ▍Operating income ¥7.12B
• ▍Net margin 4.5%

Revenue ¥77.66B; Operating income ¥7.64B.

• ▍Revenue ¥77.66B
• ▍Operating income ¥7.64B
• ▍Net margin 9.1%

Revenue ¥340.15B, +5,5% YoY; Operating income −12,3% YoY.

• ▍Revenue ¥340.15B, +5,5% YoY
• ▍Operating income −12,3% YoY
• ▍Net income −17,0% YoY
• ▍Free cash flow +440,2% YoY
• ▍Net margin 5.1%

Revenue ¥322.56B, +6,5% YoY; Operating income +7,7% YoY.

• ▍Revenue ¥322.56B, +6,5% YoY
• ▍Operating income +7,7% YoY
• ▍Net income +5,0% YoY
• ▍Free cash flow +84,2% YoY
• ▍Net margin 6.5%

Revenue ¥303.03B, +8,5% YoY; Operating income +23,9% YoY.

• ▍Revenue ¥303.03B, +8,5% YoY
• ▍Operating income +23,9% YoY
• ▍Net income +34,6% YoY
• ▍Free cash flow +29,3% YoY
• ▍Net margin 6.6%

Revenue ¥279.31B, +13,8% YoY; Operating income −14,2% YoY.

• ▍Revenue ¥279.31B, +13,8% YoY
• ▍Operating income −14,2% YoY
• ▍Net income −18,2% YoY
• ▍Free cash flow −170,9% YoY
• ▍Net margin 5.3%