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Hikari Food Service Co. Ltd.
(138A)
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Rating:58Neutral
Price Target:
¥3,078.00
▲(4.34% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily driven by solid top-line growth and improved leverage, offset by weaker profitability trend and inconsistent free cash flow conversion. Technical indicators are broadly neutral with slightly negative momentum, while valuation is moderate with a modest dividend yield.
Positive Factors
Sustained Revenue Growth
Consistent top-line expansion across 2022–2025 demonstrates durable demand for the company’s offerings and gives the business scale to spread fixed costs. Sustained revenue growth supports reinvestment, menu or location expansion, and creates the potential for operating leverage as growth continues.
Negative Factors
Net Margin Compression
Sharp compression of net margins cuts into durable profitability and leaves limited room to fund investments or cushion shocks. Even with strong gross margins, rising operating costs or pricing pressure have eroded bottom-line returns, increasing reliance on cost control to restore sustainable profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Consistent top-line expansion across 2022–2025 demonstrates durable demand for the company’s offerings and gives the business scale to spread fixed costs. Sustained revenue growth supports reinvestment, menu or location expansion, and creates the potential for operating leverage as growth continues.
Read all positive factors
Hikari Food Service Co. Ltd. (138A) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.92B
Dividend Yield1.36%
Average Volume (3M)7.89K
Price to Earnings (P/E)19.3
Beta (1Y)0.43
Revenue Growth12.69%
EPS Growth34.77%
CountryJP
Employees176
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)152.32
Shares Outstanding992,000
10 Day Avg. Volume3,790
30 Day Avg. Volume7,890
Financial Highlights & Ratios
PEG Ratio12.21
Price to Book (P/B)2.03
Price to Sales (P/S)0.93
P/FCF Ratio58.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)131
Revenue Forecast (FY)¥3.20B
Hikari Food Service Co. Ltd. Business Overview & Revenue Model
Company Description
Hikari Food Service Co., Ltd. engages in food and beverage business in Japan. It operates standing bars under the Tachinomi Yakiton Daikoku, Fish camellia, and Kanayama family names; and direct store of a meat wholesaler under the Yakiniku Marui B...
How the Company Makes Money
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Hikari Food Service Co. Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.07B | 2.86B | 2.57B | 2.23B | 1.68B | 868.43M |
| Gross Profit | 2.24B | 2.10B | 1.88B | 1.61B | 1.22B | 608.17M |
| EBITDA | 346.59M | 286.83M | 275.77M | 342.24M | 188.86M | 148.44M |
| Net Income | 151.10M | 102.46M | 100.33M | 201.04M | 62.88M | 40.58M |
Balance Sheet | ||||||
| Total Assets | 2.88B | 2.65B | 2.41B | 1.76B | 1.87B | 1.78B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 1.39B | 1.32B | 862.24M | 935.04M | 819.17M |
| Total Debt | 929.75M | 830.76M | 749.02M | 986.82M | 1.34B | 1.40B |
| Total Liabilities | 1.48B | 1.34B | 1.16B | 1.40B | 1.71B | 1.67B |
| Stockholders Equity | 1.41B | 1.31B | 1.25B | 363.89M | 162.85M | 104.98M |
Cash Flow | ||||||
| Free Cash Flow | 206.08M | 45.50M | -32.62M | 300.94M | 197.24M | -147.97M |
| Operating Cash Flow | 210.79M | 290.25M | 209.01M | 373.05M | 389.03M | 28.69M |
| Investing Cash Flow | -60.19M | 23.46M | -306.29M | -83.33M | -327.34M | -284.71M |
| Financing Cash Flow | 58.56M | 40.51M | 526.96M | -362.52M | -55.82M | 181.15M |
Hikari Food Service Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥2.57B | 4.23 | ― | 1.33% | 0.98% | 32.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ¥2.92B | 19.33 | ― | 1.35% | 12.69% | 34.77% | |
58 Neutral | ¥6.23B | 16.78 | ― | ― | ― | ― | |
48 Neutral | ¥3.54B | 52.49 | ― | ― | 25.09% | 203.78% | |
46 Neutral | ¥3.42B | -3.39 | ― | ― | 7.33% | 2.46% | |
46 Neutral | ¥4.05B | 51.48 | ― | ― | -3.67% | ― |
* Consumer Cyclical Sector Average
JP:138A
Hikari Food Service Co. Ltd.
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.