Breaking Down Kagome Co., Ltd. Financial Health: Key Insights for Investors

Curious about whether Kagome Co., Ltd. (2811.T) is a bargain or a red flag for investors? Start here: after a breakout fiscal 2024 that delivered revenue of ¥306.87 billion (up 36.55% year over year, bolstered by rising tomato paste prices and the January 2024 consolidation of Ingomar), the company posted a 6.4% decline in revenue in H1 2025 and saw profitability strains with core operating income down 32.7% and net income attributable to shareholders plunging 64.0% in the same period; yet the International Business-contributing ¥149.3 billion (48.7% of FY2024 revenue)-remains a key growth engine. With a market cap near ¥256.8 billion (Dec 12, 2025), a debt-to-equity ratio of 42.9%, total cash of ¥15,886,999,552, a trailing P/E of 16.77 and forward P/E of 12.90, and valuation metrics such as P/S 0.86, P/B 1.54 and EV/EBITDA 9.10, the balance between near-term headwinds (commodity exposure, integration risks from Ingomar, the impact of a ¥2,152,387,000 share buyback so far) and international expansion opportunities makes Kagome's current financial health a must-read for investors sizing risk versus upside-dig into the full breakdown to see where the numbers point next

Kagome Co., Ltd. (2811.T) - Revenue Analysis

Kagome Co., Ltd. reported a 6.4% decline in revenue for the first half of 2025 versus the prior-year period, signaling a near-term downturn after a strong fiscal 2024. Fiscal 2024 revenue totaled ¥306.87 billion, a 36.55% increase from FY2023, supported by higher commodity prices and inorganic expansion.

• FY2024 revenue: ¥306.87 billion (▲36.55% vs FY2023)
• Estimated FY2023 revenue: ¥224.78 billion (derived from FY2024 growth rate)
• H1 2025 revenue trend: -6.4% YoY (first-half decline)
• International Business (FY2024): ¥149.3 billion (48.7% of total)
• Ingomar Packing Company, LLC consolidated in Jan 2024, expanding the revenue base
• Key drivers in 2024: rising tomato paste prices; potential headwinds in 2025: market challenges and increased competition

Exploring Kagome Co., Ltd. Investor Profile: Who's Buying and Why?

Kagome Co., Ltd. (2811.T) - Profitability Metrics

Kagome Co., Ltd. (2811.T) has shown notable deterioration in profitability in recent reporting periods. Key headline figures point to weakening operational performance and compressed margins.

• Core operating income: down 32.7% in H1 2025 vs H1 2024, signaling reduced operational efficiency.
• Net income attributable to shareholders: down 64.0% in H1 2025 vs H1 2024, a steep decline in bottom-line profit.
• Net profit margin: 4.24% for the nine months ended September 30, 2025 - indicating earnings are being squeezed.
• Operating margin: 7.13% for the fiscal year ended December 31, 2024 - moderate profitability but trailing recent performance.
• ROA / ROE: likely negatively impacted by the profit declines (specific ROA/ROE figures not available in the source data).

Investors should review operating trends, cost structure and one-off items that may have driven the H1 2025 declines, and consider historical context and forward guidance available in company filings and analyst reports. For background on the company, see Kagome Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Kagome Co., Ltd. (2811.T) - Debt vs. Equity Structure

• Treasury share acquisition: 752,600 shares purchased for ¥2,152,387,000, as part of an authorized program to acquire up to 3,200,000 shares by August 31, 2025.
• Market capitalization: approximately ¥256.8 billion (as of December 12, 2025).
• Debt-to-equity ratio: 42.9%, indicating moderate leverage relative to equity.
• Common stock on balance sheet: ¥19,985 million (as of March 31, 2024).

• Improve EPS and ROE by reducing outstanding shares if funded from existing cash.
• Raise leverage and interest obligations if financed with debt, altering the debt-to-equity ratio and financial risk profile.
• Reduce equity book value (treasury stock recorded) and potentially constrain liquidity if large cash outflows occur.

Kagome Co., Ltd. (2811.T) - Liquidity and Solvency

Key balance-sheet indicators and recent figures provide a snapshot of Kagome Co., Ltd.'s liquidity cushion and solvency posture.

• The ¥15.89 billion cash balance offers a material buffer for working capital and near-term operational needs.
• A debt-to-equity ratio of 42.9% signals moderate leverage - not highly leveraged but using debt to support the capital structure.
• Absence of a disclosed current ratio prevents precise assessment of immediate liquidity coverage (current assets vs. current liabilities).

• Market-cap context: with ≈ ¥242.87 billion market value, Kagome is a mid-cap company where balance-sheet moves (dividends, buybacks, debt issuance) can materially affect per-share metrics.
• Share buybacks, while shareholder-friendly, will draw on the cash balance and could tighten near-term liquidity if sustained.

For additional investor context on ownership and trading activity, see: Exploring Kagome Co., Ltd. Investor Profile: Who's Buying and Why?

Kagome Co., Ltd. (2811.T) - Valuation Analysis

• Trailing P/E: 16.77 - implies the market is paying ¥16.77 for each yen of trailing earnings.
• Forward P/E: 12.90 - indicates expected earnings improvement and lower price multiple on forecasted profits.
• Price-to-Sales (P/S): ¥0.86 - the market values each yen of revenue at ¥0.86.
• Price-to-Book (P/B): 1.54 - equity trades at 1.54 times book value, signaling modest premium to net assets.
• EV/Revenue: 1.13 - enterprise value slightly above annual revenue, useful for capital-structure-neutral comparisons.
• EV/EBITDA: 9.10 - reflects valuation relative to operating cash-profit before non-cash charges.

• Relative positioning: Trailing P/E of 16.77 vs. forward 12.90 signals analyst revisions or expected margin recovery.
• Capital structure-neutral view: EV/EBITDA (9.10) and EV/Revenue (1.13) help compare Kagome to food & beverage peers without debt/equity distortions.
• Balance-sheet angle: P/B of 1.54 shows moderate investor willingness to pay above net asset value, consistent with stable consumer staples franchises.

Kagome Co., Ltd. (2811.T) - Risk Factors

• Revenue and profitability trend: FY2025 saw a year-over-year revenue decline and a sharper drop in operating profitability, reflecting intensifying competition, softer demand in some core categories, and rising input costs.
• Product concentration: A large portion of Kagome's sales remain tied to tomato-based products and beverages, making the company sensitive to tomato crop yields, weather events, pests, and commodity-price swings.
• M&A / integration risk: The consolidation of Ingomar Packing Company, LLC in January 2024 expands Kagome's U.S. footprint but introduces integration, cultural, and cost-synergy execution risks.
• Capital allocation trade-offs: An active share buyback program is supportive of EPS and shareholder returns but reduces cash reserves and limits near-term financial flexibility for capex or contingent needs.
• Leverage profile: With a debt-to-equity ratio of 42.9%, Kagome carries a moderate degree of financial leverage-enough to boost returns in good times but to increase risk under sustained revenue decline.
• Profit sustainability: Maintaining margin levels while revenue declines is a key risk-cost controls, pricing power, and product mix shifts must offset lower volumes to protect net income.

• Exposure specifics: Estimates indicate tomato-related SKUs account for roughly 60-75% of volume and a meaningful share of gross margin, amplifying sensitivity to agricultural and commodity cycles.
• Integration checklist: Key integration risks include supply-chain alignment, manufacturing consolidation, SKU rationalization, and retention of distributor/customer relationships in North America.
• Cash & liquidity considerations: The buyback program (approx. JPY 10bn annual execution) plus acquisition-related outflows reduced free cash available for strategic investments and created tighter liquidity buffers vs. prior periods.

• Commodity volatility: Tomato paste concentrate and agricultural inputs-price spikes or crop shortfalls can compress margins quickly.
• Competitive pricing pressure: Domestic and global food companies expanding in beverages and processed vegetable categories may necessitate promotional spending that further pressures margins.
• Cost inflation and FX: Continued input-cost inflation and adverse JPY/USD moves could amplify the operating-profit decline.
• Execution on cost saves: Failure to realize targeted synergies from Ingomar or other efficiency programs would sustain margin pressure while revenues contract.

Kagome Co., Ltd. (2811.T) - Growth Opportunities

• International Business: ¥149.3 billion (48.7% of FY2024 revenue)
• Implied total FY2024 revenue (calculated): approximately ¥306.6 billion
• Domestic/other segments (implied): approximately ¥157.3 billion (51.3%)

• North America expansion: Consolidation of Ingomar Packing Company, LLC in January 2024 immediately broadened Kagome's manufacturing and distribution presence in a key growth market, strengthening routes to market for juice, tomato products, and health-oriented SKUs.
• Product strategy: Emphasis on sustainable agriculture and health-oriented foods aligns with rising global consumer demand for functional, traceable, and eco-conscious products, supporting premiumization and margin expansion.
• Shareholder returns: The ongoing share buyback program can improve EPS and ROE metrics, potentially enhancing investor appeal and supporting share price performance over time.
• Profit resilience: Price revisions and earnings-structure reforms are intended to offset inflationary pressure and input-cost volatility, improving the company's ability to preserve margins during cost increases.

• Scalable levers for growth:
  • Cross-selling of Kagome's health-focused beverages and tomato-based ingredients through Ingomar's North American channels.
  • Localized product development to capture regional health and convenience trends.
  • Operational synergies from integration, including procurement scale and supply-chain optimization.