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

• Market Cap: ¥15.36B
• Dividend Yield: N/A
• Average Volume (3M): 35.18K
• Price to Earnings (P/E): 59.3
• Beta (1Y): 0.31
• Revenue Growth: 14.37%
• EPS Growth: -44.67%
• Country: JP
• Employees: 172
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 2.02
• Shares Outstanding: 31,604,500
• 10 Day Avg. Volume: 25,090
• 30 Day Avg. Volume: 35,176
• PEG Ratio: 0.00
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 12.15
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥520.00 ▲(8.79% Upside)
• Action: Reiterated Date: 10/01/25
• Date: Action: Reiterated 10/01/25

GOKURAKUYU HOLDINGS CO. LTD. has a strong financial recovery trajectory, supported by robust cash flow and improving profitability. Technical indicators suggest potential short-term weakness, but the stock is nearing oversold levels, which could lead to a rebound. The valuation is moderate, making it a reasonable option for growth-oriented investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for the company's services and suggests a solid market position in the leisure industry.

Cash Flow Generation

Strong cash generation capabilities provide financial flexibility for future investments and debt management, supporting long-term growth.

Profitability

High ROE indicates efficient management and strong profitability, enhancing investor confidence and supporting sustainable business growth.

Negative Factors

Earnings Volatility

Historical earnings volatility can pose risks to financial stability, potentially impacting investor confidence and long-term planning.

Equity Fluctuations

Fluctuations in equity levels may indicate financial instability, affecting the company's ability to maintain consistent growth and leverage.

EPS Decline

A decline in EPS growth suggests potential challenges in maintaining profitability, which could hinder long-term earnings growth and investor returns.

GOKURAKUYU HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

GOKURAKUYU HOLDINGS CO. LTD. (2340) is a Japanese company primarily engaged in the wellness and leisure sectors. The company operates a chain of public bathhouses and spas, offering traditional Japanese onsen experiences along with various relaxation and beauty treatments. GOKURAKUYU also engages in the management of facilities for health and recreational purposes, catering to a diverse clientele seeking relaxation and wellness services.

How the Company Makes Money

GOKURAKUYU HOLDINGS generates revenue primarily through its network of public bathhouses and spas, charging customers for admission and various services, including massages, beauty treatments, and food and beverage offerings within its facilities. The company may also earn income through membership programs, which provide customers with benefits for a subscription fee. Additionally, GOKURAKUYU may engage in partnerships with wellness product suppliers and local businesses to enhance its service offerings and create bundled packages, further driving revenue. Seasonal promotions and special events can also contribute to increased foot traffic and revenue during peak periods.

GOKURAKUYU HOLDINGS CO. LTD. Financial Statement Overview

Summary

GOKURAKUYU HOLDINGS CO. LTD. shows a strong financial recovery with significant improvements in revenue and profitability. The company has a solid operating performance and robust cash flow growth, although historical financial fluctuations present some risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.69B	15.16B	14.08B	12.77B	10.04B	8.76B
Gross Profit	2.61B	2.53B	2.06B	1.31B	552.93M	-390.64M
EBITDA	1.78B	1.73B	1.44B	821.82M	387.04M	-421.78M
Net Income	756.64M	769.85M	697.45M	-304.46M	-1.98B	-3.08B
Balance Sheet
Total Assets	12.50B	13.02B	11.35B	15.17B	17.27B	18.51B
Cash, Cash Equivalents and Short-Term Investments	1.61B	2.90B	2.87B	5.49B	6.23B	4.79B
Total Debt	3.05B	3.19B	4.22B	9.24B	11.40B	11.54B
Total Liabilities	8.57B	9.20B	8.35B	15.02B	17.29B	17.18B
Stockholders Equity	3.93B	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	-603.79M	-234.25M
Financing Cash Flow	0.00	-957.73M	-2.66B	-1.76B	404.62M	-144.51M

GOKURAKUYU HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 478.00
• 50DMA: Negative
• 100DMA: Positive
• 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 478 is below the 20-day moving average (MA) of 488.50, below the 50-day MA of 487.76, and below the 200-day MA of 485.93, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 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
7085	76 Outperform	¥70.70B	16.92	―	2.22%	5.92%	20.63%
7092	74 Outperform	¥43.17B	14.60	―	1.95%	16.36%	38.48%
4680	67 Neutral	¥247.55B	29.55	―	1.51%	11.92%	33.70%
2340	62 Neutral	¥15.36B	59.29	―	―	14.37%	-44.67%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4801	61 Neutral	¥27.71B	14.57	―	1.85%	4.17%	-20.08%
4343	52 Neutral	¥47.52B	49.41	―	―	6.00%	-184.09%