Hikari Food Service Co. Ltd. (138A) AI Stock Analysis

• Market Cap: ¥2.96B
• Dividend Yield: 1.59%
• Average Volume (3M): 7.89K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.33
• Revenue Growth: 11.33%
• EPS Growth: -21.04%
• Country: JP
• Employees: 231
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -15.37
• Shares Outstanding: 992,000
• 10 Day Avg. Volume: 3,790
• 30 Day Avg. Volume: 7,890
• PEG Ratio: 12.21
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 58.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 211.7
• Revenue Forecast (FY): ¥3.80B

• Rating: 60 Neutral
• Price Target: ¥2,985.00 ▲(8.94% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by solid financial fundamentals (strong growth and improved leverage) offset by margin compression and uneven free cash flow. Technicals are mildly supportive with price holding above longer-term averages and positive MACD. Valuation is the main constraint, with a ~25.9 P/E and only a modest ~1.4% dividend yield.

Positive Factors

Sustained Revenue Growth

Consistent top-line expansion across 2022–2025 indicates durable demand for the company's restaurant offerings and successful expansion or same-store performance. Sustainable revenue growth supports scale economics, supplier leverage, and provides a base to restore margins over the next several quarters.

Negative Factors

Operating Margin Compression

Sharp margin erosion from peak levels signals rising operating costs or deteriorating operating leverage. If sustained, lower margins will limit earnings power from growing revenues, constrain free cash flow conversion, and pressure returns even as sales expand over the next 2–6 months.

Hikari Food Service Co. Ltd. Business Overview & Revenue Model

Company Description

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....

Hikari Food Service Co. Ltd. Financial Statement Overview

Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	1.43B	2.86B	2.57B	2.23B	1.68B	868.43M
Gross Profit	1.05B	2.10B	1.88B	1.61B	1.22B	608.17M
EBITDA	189.98M	286.83M	275.77M	342.24M	188.86M	148.44M
Net Income	88.38M	102.46M	100.33M	201.04M	62.88M	40.58M
Balance Sheet
Total Assets	2.48B	2.65B	2.41B	1.76B	1.87B	1.78B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.39B	1.32B	862.24M	935.04M	819.17M
Total Debt	729.80M	830.76M	749.02M	986.82M	1.34B	1.40B
Total Liabilities	1.18B	1.34B	1.16B	1.40B	1.71B	1.67B
Stockholders Equity	1.30B	1.31B	1.25B	363.89M	162.85M	104.98M
Cash Flow
Free Cash Flow	49.83M	45.50M	-32.62M	300.94M	197.24M	-147.97M
Operating Cash Flow	166.52M	290.25M	209.01M	373.05M	389.03M	28.69M
Investing Cash Flow	43.07M	23.46M	-306.29M	-83.33M	-327.34M	-284.71M
Financing Cash Flow	-59.63M	40.51M	526.96M	-362.52M	-55.82M	181.15M

Hikari Food Service Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2740.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:138A, the sentiment is Positive. The current price of 2740 is below the 20-day moving average (MA) of 2884.55, below the 50-day MA of 2870.88, and above the 200-day MA of 2580.64, indicating a bullish trend. The MACD of 16.47 indicates Negative momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 91.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:138A.

Hikari Food Service Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3077	75 Outperform	¥5.39B	11.39	―	―	6.16%	86.76%
8181	75 Outperform	¥2.61B	4.68	―	1.33%	5.03%	129.14%
3358	63 Neutral	¥4.06B	12.53	―	―	3.85%	-59.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
138A	60 Neutral	¥2.96B	25.95	―	1.59%	11.33%	-21.04%
3067	54 Neutral	¥4.04B	6.85	―	―	-2.70%	98.30%
2762	47 Neutral	¥3.98B	-7.98	―	―	3.26%	4.62%