GOKURAKUYU HOLDINGS CO. LTD. (2340) AI Stock Analysis

• Market Cap: ¥15.90B
• Dividend Yield: N/A
• Average Volume (3M): 72.53K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.38
• Revenue Growth: 12.42%
• EPS Growth: -18.48%
• Country: JP
• Employees: 172
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 4.06
• Shares Outstanding: 31,496,100
• 10 Day Avg. Volume: 68,420
• 30 Day Avg. Volume: 72,530
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥522.00
• Price Target Upside: 3.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥522.00 ▲(3.37% Upside)

The overall stock score for GOKURAKUYU HOLDINGS CO. LTD. reflects its strong financial recovery, with improvements in profitability and cash flow underpinning a stable outlook. While technical analysis presents neutral signals, limiting short-term upside, the fair valuation supports a balanced risk-reward profile. Historical financial volatility and the lack of a dividend yield are minor concerns.

GOKURAKUYU HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Gokurakuyu Holdings Co., Ltd., together with its subsidiaries, operates, manages, and franchises spas facilities under the Gokurakuyu and RAKU SPA names in Japan and internationally. It is also involved in the business development activities; investigation of environment and underground geology; and development of underground resources. The company was formerly known as Gokurakuyu Co., Ltd. and changed its name to Gokurakuyu Holdings Co., Ltd. in January 2017. Gokurakuyu Holdings Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GOKURAKUYU HOLDINGS CO. LTD. generates revenue primarily through the operation of its bathhouses and wellness centers. Customers pay for admission to use the facilities, which include hot spring baths, saunas, and relaxation areas. Additional revenue is earned through the sale of food, beverages, and wellness-related products within the centers. The company may also earn income from membership programs, offering regular customers discounted rates or exclusive access to certain services. Partnerships with local businesses and promotional events can also contribute to revenue generation.

GOKURAKUYU HOLDINGS CO. LTD. Financial Statement Overview

Summary

GOKURAKUYU HOLDINGS CO. LTD. demonstrates strong financial recovery with notable improvements in revenue and profitability. The income statement shows a solid operating performance, supported by stable margins. The balance sheet indicates a manageable leverage with a healthy equity ratio, though historical volatility poses some risk. Strong cash flow performance enhances financial stability and supports future growth.

Income Statement

GOKURAKUYU HOLDINGS CO. LTD. has shown a strong recovery in its income statement over the past few years, with significant improvements in revenue and profitability. The latest annual revenue growth rate is approximately 7.7%, with a gross profit margin of 16.74% and a net profit margin of 5.08%. This indicates improving operational efficiency and profitability, although the company has faced periods of negative net income in prior years. The EBIT and EBITDA margins are at 7.52% and 12.10% respectively, reflecting a solid operating performance.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.84, indicating manageable leverage. The equity ratio stands at 29.33%, suggesting a healthy level of equity financing relative to total assets. However, the company has experienced fluctuations in equity and debt levels in past years, reflecting potential financial volatility. The return on equity (ROE) is 20.14%, demonstrating effective use of equity in generating profits.

Cash Flow

Cash flow analysis shows robust free cash flow growth of 130.3% year-over-year, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 2.85, highlighting efficient conversion of earnings into cash. The free cash flow to net income ratio is 1.59, showing strong cash retention after capital expenditures. This solid cash flow performance provides a cushion for future investments and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.16B	15.16B	14.08B	12.77B	10.04B	8.76B
Gross Profit	2.54B	2.54B	2.08B	1.33B	575.98M	-353.17M
EBITDA	1.84B	1.84B	1.32B	727.72M	-831.00M	-1.05B
Net Income	770.07M	769.85M	697.45M	-304.46M	-1.98B	-3.08B
Balance Sheet
Total Assets	13.02B	13.02B	11.35B	15.17B	17.27B	18.51B
Cash, Cash Equivalents and Short-Term Investments	2.90B	2.90B	2.87B	5.49B	6.23B	4.79B
Total Debt	3.19B	3.19B	4.22B	9.24B	11.40B	11.54B
Total Liabilities	9.20B	9.20B	8.35B	15.02B	17.29B	17.18B
Stockholders Equity	3.82B	3.82B	3.00B	149.35M	-12.70M	1.33B
Cash Flow
Free Cash Flow	0.00	1.22B	530.61M	482.97M	1.03B	-85.56M
Operating Cash Flow	0.00	2.20B	1.58B	836.24M	1.50B	122.58M
Investing Cash Flow	0.00	-1.21B	-1.11B	175.55M	-655.83M	-275.49M
Financing Cash Flow	0.00	-957.73M	-2.66B	-1.76B	456.65M	-103.27M

GOKURAKUYU HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 505.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2340, the sentiment is Negative. The current price of 505 is above the 20-day moving average (MA) of 501.15, above the 50-day MA of 495.60, and above the 200-day MA of 485.86, indicating a neutral trend. The MACD of 1.59 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 56.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2340.

GOKURAKUYU HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6238	78 Outperform	¥30.37B	17.76	7.26%	3.51%	3.56%	-20.82%
7092	78 Outperform	¥33.96B	15.61	14.57%	2.49%	16.15%	22.41%
6074	74 Outperform	¥2.18B	12.32	6.40%	3.55%	4.70%	-10.05%
7085	73 Outperform	¥77.33B	19.97	18.38%	2.02%	6.85%	7.52%
4801	70 Outperform	¥28.60B	44.33	5.26%	1.76%	3.23%	-61.68%
2340	65 Neutral	¥15.90B	20.82	―	―	12.42%	-18.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%