Key Coffee Inc. (2594) AI Stock Analysis

• Market Cap: ¥42.82B
• Dividend Yield: 0.6%
• Average Volume (3M): 107.03K
• Price to Earnings (P/E): 94.6
• Beta (1Y): 0.12
• Revenue Growth: 10.46%
• EPS Growth: N/A
• Country: JP
• Employees: 940
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 13.09
• Shares Outstanding: 22,689,000
• 10 Day Avg. Volume: 103,000
• 30 Day Avg. Volume: 107,026
• PEG Ratio: 6.79
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -19.96
• 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: 57 Neutral
• Price Target: ¥2,071.00 ▲(3.81% Upside)

The overall stock score is primarily impacted by financial performance and valuation concerns. While revenue growth is strong, profitability and cash flow issues weigh heavily. The high P/E ratio suggests overvaluation, and technical indicators point to potential bearish momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Stable Gross Margins

Stable gross margins reflect efficient cost control and pricing strategies, ensuring profitability despite market fluctuations.

Solid Balance Sheet

A solid balance sheet with low leverage enhances financial stability and provides flexibility for future investments.

Negative Factors

Low Net Profit Margins

Low net profit margins suggest challenges in converting revenue into profit, which may hinder long-term profitability and growth.

Negative Free Cash Flow

Negative free cash flow can strain liquidity, limiting the company's ability to invest in growth opportunities and manage financial obligations.

Low Return on Equity

Low return on equity indicates inefficient use of shareholder funds, potentially impacting investor confidence and capital attraction.

Key Coffee Inc. Business Overview & Revenue Model

Company Description

Key Coffee Inc. engages in the operation of coffee plantations in Japan. It produces and markets coffee and coffee related products. The company was founded in 1920 and is headquartered in Tokyo, Japan.

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. shows strong revenue growth and stable gross margins, but profitability is hindered by low net margins and negative free cash flow. The balance sheet is solid, yet cash flow management needs improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.48B	77.88B	73.80B	63.30B	55.68B	52.60B
Gross Profit	14.07B	14.31B	15.22B	14.22B	14.29B	12.90B
EBITDA	1.60B	1.78B	1.52B	1.30B	2.02B	-2.54B
Net Income	201.00M	343.00M	180.00M	173.00M	742.00M	-4.08B
Balance Sheet
Total Assets	63.45B	58.36B	54.83B	51.77B	43.43B	43.79B
Cash, Cash Equivalents and Short-Term Investments	7.13B	5.08B	4.67B	4.12B	5.44B	5.76B
Total Debt	10.85B	8.22B	5.34B	3.19B	82.00M	187.00M
Total Liabilities	32.30B	27.27B	23.86B	21.24B	12.95B	13.87B
Stockholders Equity	30.86B	30.77B	30.67B	30.25B	30.20B	29.67B
Cash Flow
Free Cash Flow	0.00	-2.19B	-684.00M	-4.14B	-68.00M	-1.66B
Operating Cash Flow	0.00	-1.34B	481.00M	-3.10B	861.00M	-1.19B
Investing Cash Flow	0.00	-1.08B	-1.69B	-973.00M	-727.00M	-396.00M
Financing Cash Flow	0.00	2.83B	1.74B	2.76B	-466.00M	-908.00M

Key Coffee Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1995.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2594, the sentiment is Positive. The current price of 1995 is above the 20-day moving average (MA) of 1989.75, above the 50-day MA of 1983.56, and below the 200-day MA of 1995.95, indicating a bullish trend. The MACD of 4.32 indicates Negative momentum. The RSI at 54.85 is Neutral, neither overbought nor oversold. The STOCH value of 41.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2594.

Key Coffee Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2208	76 Outperform	¥63.38B	12.80	―	1.55%	5.78%	14.23%
2209	75 Outperform	¥32.95B	12.53	―	1.23%	6.74%	29.20%
2211	71 Outperform	¥65.08B	34.06	―	1.14%	8.17%	10.65%
2216	68 Neutral	¥75.72B	21.38	―	4.63%	7.74%	0.96%
2217	68 Neutral	¥32.83B	36.20	―	1.35%	0.87%	-50.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2594	57 Neutral	¥42.82B	94.57	―	0.60%	10.46%	―