Sustained Revenue ExpansionMulti-year revenue expansion, including a marked jump in 2025, signals durable scale-up in core distribution channels and stronger contract visibility with restaurants and hotels. Persistent top-line growth supports margin recovery efforts and funds reinvestment for logistics and product breadth over the medium term.

Improving Capital StructureMaterial deleveraging to ~0.63 and rising equity reduce financial risk and increase flexibility for strategic investments or working-capital needs. A more moderate leverage profile improves resilience to demand swings, lowers refinancing pressure, and supports steady credit access over the next several quarters.

High, Stable Gross MarginsConsistently elevated gross margins (~70%+) indicate structural product-level pricing power or favorable supply economics in core ingredients. This buffer supports profitability even when operating costs rise and provides room for reinvestment, promotional activity, or gradual margin restoration over time.

Bears Say

Profit Margin CompressionSignificant net and EBITDA margin compression suggests persistent cost pressure or aggressive reinvestment that has eroded earnings quality. If sustained, lower margins constrain free-cash-flow generation, limit buffer for debt reduction, and reduce capital available for growth or margin-restoring initiatives.

Volatile Free Cash Flow ConversionInconsistent FCF conversion—negative in 2024 and modest in 2025 with FCF just ~16% of net income—indicates working-capital intensity or capex absorption. Weak conversion undermines sustained debt paydown, limits investment firepower, and increases reliance on operating income stability to fund strategic needs.

Absolute Debt Burden RemainsAlthough leverage ratios improved, sizable absolute debt exposes the company to interest-cost variability and reduces strategic flexibility. Continued earnings and reliable cash conversion are required to further de-risk the balance sheet; failure to sustain cash flows could slow deleveraging and constrain growth investments.

138A FAQ

What was Hikari Food Service Co. Ltd.’s price range in the past 12 months?

Hikari Food Service Co. Ltd. lowest stock price was ¥1471.00 and its highest was ¥3315.00 in the past 12 months.

What is Hikari Food Service Co. Ltd.’s market cap?

Hikari Food Service Co. Ltd.’s market cap is ¥2.81B.

When is Hikari Food Service Co. Ltd.’s upcoming earnings report date?

Hikari Food Service Co. Ltd.’s upcoming earnings report date is Apr 10, 2026 which is in 52 days.

How were Hikari Food Service Co. Ltd.’s earnings last quarter?

Hikari Food Service Co. Ltd. released its earnings results on Jan 14, 2026. The company reported -¥15.37 earnings per share for the quarter, missing the consensus estimate of N/A by -¥15.37.

Is Hikari Food Service Co. Ltd. overvalued?

According to Wall Street analysts Hikari Food Service Co. Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Hikari Food Service Co. Ltd. pay dividends?

Hikari Food Service Co. Ltd. pays a Notavailable dividend of ¥40 which represents an annual dividend yield of 1.59%. See more information on Hikari Food Service Co. Ltd. dividends here

What is Hikari Food Service Co. Ltd.’s EPS estimate?

Hikari Food Service Co. Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Hikari Food Service Co. Ltd. have?

Hikari Food Service Co. Ltd. has 992,000 shares outstanding.

What happened to Hikari Food Service Co. Ltd.’s price movement after its last earnings report?

Hikari Food Service Co. Ltd. reported an EPS of -¥15.37 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 1.578%.

Which hedge fund is a major shareholder of Hikari Food Service Co. Ltd.?

Currently, no hedge funds are holding shares in JP:138A

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Hikari Food Service Co. Ltd.

Hikari Food Service Co Ltd is engaged in the restaurant business in Japan. It mainly provides standing bar-style izakaya restaurants. Some of its restaurants are, Daikoku, Fish Camellia, Kanayamaya Family, and Yakiniku Delux.