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Kikkoman Corp 2801

Morningstar Rating
JPY 1,827.50 +2.50 (0.14%)
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Company Report

Overseas Markets to Continue Driving Profit Growth for Kikkoman as Yen Stays Soft

In our view, Kikkoman is one of the best-known soy sauce brands globally, with its soy sauce dating back to 17th century Japan in Noda, Chiba Prefecture and the company itself the leading soy sauce manufacturer since its set up in 1917. More recently, Kikkoman has been focused on diversifying and internationalizing its products as the per capita consumption of soy sauce declines and population growth retreats in Japan. It has expanded its product portfolio to include foods that fit the rising health awareness of consumers.

Price vs Fair Value

2801 is trading at a 194% premium.
Price
JPY 1,827.50
Fair Value
JPY 1,586.00
Uncertainty
Medium
1-Star Price
JPY 6,795.00
5-Star Price
JPY 7,576.00
Economic Moat
Thft
Capital Allocation
Rrgtrmfl

Bulls Say, Bears Say

Bulls

Kikkoman will replicate its success in other countries where soy sauce penetration is low, lifting its growth outlook for longer.

Bears

Sales in Japan decline more quickly, diminishing scale benefits and profits, and Kikkoman is unable to find ways to offset the drop.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
JPY 1,825.00
Day Range
JPY 1,800.00–1,848.00
52-Week Range
JPY 1,518.40–2,051.00
Bid/Ask
JPY 1,827.50 / JPY 1,834.50
Market Cap
JPY 1.74 Tril
Volume/Avg
4.5 Mil / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
7.27
Price/Sales
2.63
Dividend Yield (Trailing)
4.20%
Dividend Yield (Forward)
4.20%
Total Yield
4.76%

Company Profile

Kikkoman was founded in 1917 following the merger of eight family-owned companies in Noda, Chiba Prefecture, Japan. It is the largest soy sauce manufacturer in Japan and the US Domestically, it sells a wide range of food and beverage products including but not limited to soy sauce, soy milk, licensed Del Monte products, and liquor. Kikkoman’s products are shipped to over 100 countries with eight global production plants across the US, Asia, Europe, and South America. Apart from food manufacturing, Kikkoman also operates a wholesale business segment that resells Asian foods globally.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Large Core
Total Number of Employees
8,387

Competitors

Valuation

Metric
2801
2802
CAG
Price/Earnings (Normalized)
7.2733.1910.57
Price/Book Value
3.543.601.48
Price/Sales
2.632.071.12
Price/Cash Flow
19.2018.467.34
Price/Earnings
2801
2802
CAG

Financial Strength

Metric
2801
2802
CAG
Quick Ratio
2.350.800.29
Current Ratio
3.491.370.95
Interest Coverage
15.5311.553.35
Quick Ratio
2801
2802
CAG

Profitability

Metric
2801
2802
CAG
Return on Assets (Normalized)
9.24%5.79%5.79%
Return on Equity (Normalized)
12.61%12.00%14.39%
Return on Invested Capital (Normalized)
9.83%7.93%8.83%
Return on Assets
2801
2802
CAG
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