Key Coffee Inc. (2594) AI Stock Analysis

• Market Cap: ¥42.29B
• Dividend Yield: 0.61%
• Average Volume (3M): 103.06K
• Price to Earnings (P/E): 123.7
• Beta (1Y): 0.11
• Revenue Growth: 5.40%
• EPS Growth: 90.00%
• Country: JP
• Employees: 940
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Food Confectioners
• EPS (TTM): -38.02
• Shares Outstanding: 22,689,000
• 10 Day Avg. Volume: 74,990
• 30 Day Avg. Volume: 103,060
• PEG Ratio: 11.57
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,036.00
• Price Target Upside: 3.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ¥2,036.00 ▲(3.09%Upside)

The overall stock score for Key Coffee Inc. is driven primarily by strong revenue growth and stable gross margins, juxtaposed with liquidity concerns due to negative free cash flow. Technical analysis indicates bearish trends, while high P/E ratio suggests the stock may be overvalued. Limited dividend yield further dampens its attractiveness.

Key Coffee Inc. Business Overview & Revenue Model

Company Description

Key Coffee Inc. is a leading Japanese company specializing in the production, marketing, and distribution of coffee products. Established in 1920, the company operates in the food and beverage sector and is known for its high-quality coffee beans, ground coffee, and instant coffee products. Key Coffee Inc. serves both retail consumers and commercial clients, including cafes and restaurants, offering a diverse range of coffee flavors and blends to suit various preferences.

How the Company Makes Money

Key Coffee Inc. generates revenue primarily through the sale of its coffee products to both retail and commercial customers. The company sells packaged coffee, including beans, ground coffee, and instant coffee, through supermarkets, convenience stores, and online platforms. Additionally, Key Coffee maintains a strong presence in the commercial sector by supplying coffee to cafes, restaurants, and hospitality businesses. The company may also engage in strategic partnerships with other businesses or brands to expand its market reach and enhance its product offerings. While precise details of all revenue streams are not publicly disclosed, these activities form the core of Key Coffee's revenue model.

Key Coffee Inc. Financial Statement Overview

Summary

Key Coffee Inc. exhibits a strong growth trajectory with stable gross margins and increasing revenues. However, concerns arise from low net margins and negative free cash flow, indicating liquidity issues. The balance sheet is solid, but improvements in cash flow management are needed to enhance liquidity and shareholder returns.

Income Statement

Key Coffee Inc. has demonstrated consistent revenue growth with a 6% increase in the latest year. The gross profit margin has remained stable around 18%, indicating effective cost management. However, net profit margin is relatively low at 0.44%, reflecting potential inefficiencies or high operational costs. EBITDA margin is healthy at 2.29%, suggesting strong earnings before non-cash charges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.27, indicating a conservative approach to leverage. With an equity ratio of 52.7%, Key Coffee Inc. maintains a solid equity foundation. The return on equity stands at just 1.11%, suggesting limited return on shareholder investments, which could be improved.

Cash Flow

Cash flow analysis reveals challenges, with free cash flow consistently negative, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, reflecting an inability to convert earnings into cash. However, the company has managed financing activities effectively, as seen in the positive financing cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	77.88B	73.80B	63.30B	55.68B	52.60B
Gross Profit	14.31B	15.22B	14.22B	14.29B	12.90B
EBITDA	1.78B	1.52B	1.30B	2.02B	-2.54B
Net Income	343.00M	180.00M	173.00M	742.00M	-4.08B
Balance Sheet
Total Assets	58.36B	54.83B	51.77B	43.43B	43.79B
Cash, Cash Equivalents and Short-Term Investments	5.08B	4.67B	4.12B	5.44B	5.76B
Total Debt	8.22B	5.34B	3.19B	82.00M	187.00M
Total Liabilities	27.27B	23.86B	21.24B	12.95B	13.87B
Stockholders Equity	30.77B	30.67B	30.25B	30.20B	29.67B
Cash Flow
Free Cash Flow	-2.19B	-684.00M	-4.14B	-68.00M	-1.66B
Operating Cash Flow	-1.34B	481.00M	-3.10B	861.00M	-1.19B
Investing Cash Flow	-1.08B	-1.69B	-973.00M	-727.00M	-396.00M
Financing Cash Flow	2.83B	1.74B	2.76B	-466.00M	-908.00M

Key Coffee Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1975.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2594, the sentiment is Neutral. The current price of 1975 is above the 20-day moving average (MA) of 1954.60, below the 50-day MA of 1983.64, and below the 200-day MA of 2023.55, indicating a neutral trend. The MACD of -1.74 indicates Negative momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 80.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2594.

Key Coffee Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2209	76 Outperform	¥31.90B	14.48		1.27%	6.01%	14.02%
2216	69 Neutral	¥70.41B	19.76		1.93%	11.18%	28.19%
2208	67 Neutral	¥62.22B	11.20		0.39%	9.41%	80.74%
2211	65 Neutral	¥62.92B	38.79		1.23%	3.75%	44.95%
2217	59 Neutral	¥33.53B	27.21		1.80%	0.62%	-32.02%
Sector *	54 Neutral	C$4.43B	3.99	-20.57%	3.83%	8.18%	1.50%
2594	53 Neutral	¥42.29B	123.66		0.61%	5.40%	90.00%

Key Coffee Inc. Corporate Events

Key Coffee Inc. Acquires Inoda Coffee to Boost Industry Presence

Key Coffee Inc. has announced its decision to acquire shares in Inoda Coffee Company Limited, converting it into a consolidated subsidiary. This strategic move aims to leverage synergies between the two companies, enhancing Key Coffee’s profitability and presence in the coffee industry. The acquisition is part of Key Coffee’s business restructuring efforts to strengthen its earning capacity and corporate value.

Key Coffee Inc. Reports Financial Results and Future Outlook

Key Coffee Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 5.4% increase in net sales to ¥77,783 million. Despite the rise in sales, the company experienced a decline in operating and ordinary profits by 20.6% and 12.7%, respectively. Profit attributable to owners of the parent increased significantly by 89.9% to ¥342 million. The company forecasts further growth in the fiscal year ending March 31, 2026, with expected net sales of ¥85,000 million and a 75.1% increase in profit attributable to owners. This announcement highlights Key Coffee’s strategic focus on improving profitability and expanding its market presence, despite current challenges in operational profits.

Key Coffee Inc. Continues Takeover Defense Plan

Key Coffee Inc. has announced the continuation of its takeover defense measures, initially introduced in 2008, to safeguard its corporate value and the interests of its shareholders. The decision, which requires shareholder approval, involves revising the terms in response to changes in the business environment and social conditions, while maintaining the plan’s core objective of ensuring shareholders have sufficient information and time to consider large-scale purchase proposals.

Key Coffee Inc. Announces Director Nomination and Personnel Changes

Key Coffee Inc. announced the nomination of Satoshi Watabe as a new Director and Audit & Supervisory Committee Member, leveraging his extensive experience in quality assurance and audit operations. This change is part of the company’s strategic personnel adjustments, with the retirement of current Director Nobuyuki Shimizu and internal personnel shifts, aiming to strengthen its management oversight.

Key Coffee Inc. Reports Mixed Financial Results for FY 2025

Key Coffee Inc. reported discrepancies between its forecasted and actual financial results for the fiscal year ending March 31, 2025. While net sales, operating profit, and ordinary profit exceeded expectations, the profit attributable to owners of the parent was significantly lower due to impairment losses on non-current assets. This indicates a mixed financial performance, with implications for stakeholders regarding the company’s asset management and profitability.

Key Coffee Inc. Announces Strategic Organizational and Personnel Changes

Key Coffee Inc. announced significant organizational and personnel changes effective April 1, 2025, aimed at enhancing its operational efficiency and market responsiveness. The restructuring involves the abolition of certain positions and the reorganization of divisions, including the Marketing and Sales Divisions, to streamline operations and improve strategic focus. These changes are expected to impact the company’s internal dynamics and potentially strengthen its position in the competitive coffee market.