The average target price of 2820.T is 6080 and suggests 20% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 6080.0. This translates into 20% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 6080.0. This suggests 20% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Yamami Company manufactures and sells tofu in Japan. It offers cotton, silk, filled, cut, commercial, and deep-fried tofu; atsuage products; and marine food products. Yamami Company was founded in 1975 and is headquartered in Mihara, Japan.

Japan

Yamami Company

Consumer Cyclical

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are somewhat mixed. In the past 12 months, the dividend yield has been moderate and on par with its peers. On average, the company pays dividends twice a year. 

2820.T reported revenue of JPY 19 829mn in the last 12 months, up 11% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 15% from FY23 to JPY 163.86. Market expects EPS to reach JPY 234.30 in FY25.

Over the past six months, the stock has consistently climbed, resulting in 41% total increase. When compared to its international counterparts in the same sector and industry (as shown above), the stock has exceeded their performances, leading by 45ppts in total. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 16.1% in the last 12 months, a decline from 19.7% in FY23. 

Historically, 2820.T has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 5.8%, down from 7.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 10.0%, above the peers. The consensus estimate for FY25 for RoCE is 15.2%, again ahead of the peers. 

Yamami Company reported a return on equity (RoE) of 11.7% in the last 12 months, down from 12.1% in FY24. The market consensus projects an RoE of 12.3% in FY25, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to 7.0% in the last 12 months, a decrease from 7.2% in FY24. The market analysts predict that RoA will be 7.5% in FY25, again stronger than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.7 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

2820.T has poor trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is usually stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to weak positions in its industry, slow historical revenue growth.

In highly turbulent market conditions, 2820.T is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, 2820.T is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from low to mild. 

Considering past and projected metrics, the stock is 'expensive' compared to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBITD. 

Yamami Company

¥ 5060

4

Yamami Company

¥ 5060

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

¥ 5060

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