With Q3 2026 revenue of ¥126.8b and net income of ¥2.3b, Prima maintains a substantial sales base, though facing profitability headwinds. The company is affiliated with Itochu Corp and faces market scrutiny regarding a slim 1.4% net margin and five-year earnings decline of 16.8% per year.
Cyborg Score Rationale
Prima Meat Packers traded at a trailing P/E of 20.6x, above both peers (15.2x) and the broader Japan Food industry (16.7x), while bears focus on a 1.4% margin and five-year earnings decline of 16.8% per year. EPS has fallen approximately 12% per year over five years, with potential to constrain dividend payments.
Top Insights
Net margin compressed to 1.4% from 1.6% year-over-year with five-year earnings declining 16.8% annually, leaving little room for error.
Annual dividend payment of 2.8% of current stock price is above industry average, yet sustainability concerns exist due to EPS declines and weak cash flows.
Forecasts predict approximately 8.37% yearly earnings growth paired with a DCF fair value of ¥67,014.61, significantly above the current share price.
Q3 2026 shows the business still converting a large ¥126.8b sales base into absolute profit despite margin pressures.
Named Competitors
Processed Meat Products — Major Japanese processed meat competitor
Fresh Meat & Hog Farming — Regional Japanese meat packers and processors
Recent Developments
(February 2026) Q3 2026 results posted with margin pressure reinforcing cautious investor sentiment despite continued profit generation
(June 2025) Board announced dividend of ¥40.00 per share, maintaining distribution above industry average
(December 2025) Trading at 59.3% below estimated fair value according to analysis platforms
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