Unicafe Inc. (2597) AI Stock Analysis

• Market Cap: ¥13.57B
• Dividend Yield: 0.79%
• Average Volume (3M): 7.11K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.04
• Revenue Growth: 18.53%
• EPS Growth: 42.79%
• Country: JP
• Employees: 200
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 16.29
• Shares Outstanding: 13,869,200
• 10 Day Avg. Volume: 5,010
• 30 Day Avg. Volume: 7,113
• PEG Ratio: 8.47
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 31.82
• 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: 72 Outperform
• Price Target: ¥1,124.00 ▲(11.18% Upside)

Unicafe Inc. receives a strong overall score driven by robust financial performance and positive technical indicators. The company's stable financial health and bullish market momentum are significant strengths. However, the declining free cash flow and modest valuation metrics suggest some caution is warranted.

Unicafe Inc. Business Overview & Revenue Model

Company Description

Unicafe Inc. (2597) is a prominent player in the food and beverage sector, specializing in the development and operation of café franchises and retail food services. The company focuses on providing high-quality coffee, baked goods, and light meals, catering to both individual consumers and businesses. With a commitment to sustainability and customer satisfaction, Unicafe operates multiple locations that emphasize a cozy atmosphere and community engagement.

How the Company Makes Money

Unicafe Inc. generates revenue primarily through its café franchises, which operate on a model that includes direct sales of food and beverages. The company earns money from the sale of coffee, pastries, sandwiches, and other food items, with a significant portion of revenue coming from high-margin products like specialty coffee. Additionally, Unicafe may offer franchise opportunities to aspiring entrepreneurs, charging initial franchise fees and ongoing royalties based on sales. Strategic partnerships with coffee suppliers and local food producers enhance product quality and can lead to cost savings, further contributing to profitability. Seasonal promotions and loyalty programs also play a role in driving customer retention and increasing sales volume.

Unicafe Inc. Financial Statement Overview

Summary

Unicafe Inc. demonstrates robust financial health with growth in revenue, improved profitability, and a stable balance sheet. The company has effectively managed its debt, maintaining low leverage and high equity. However, declining free cash flow and past financial volatility warrant cautious optimism.

Income Statement

Unicafe Inc. shows a consistent growth trajectory with a revenue growth from 2023 to 2024 and improving profitability metrics. The Gross Profit Margin stands at 21.9%, and the Net Profit Margin is 3.5%. The EBIT Margin improved significantly to 4.2% from 3.1% the previous year, indicating enhanced operational efficiency. However, historical fluctuations in revenue and net income highlight potential volatility in performance.

Balance Sheet

The company maintains a strong equity position with a Debt-to-Equity Ratio of 0.28, indicating low leverage and financial stability. Return on Equity (ROE) improved to 7.0%, and the Equity Ratio is strong at 46%. While Unicafe Inc. shows financial stability, a high Debt-to-Equity ratio and liabilities in previous years suggest careful monitoring of leverage is needed.

Cash Flow

There is a notable decline in Free Cash Flow Growth Rate, with a decrease to $383M from $803M the previous year, suggesting reduced efficiency in generating cash flow. The Operating Cash Flow to Net Income Ratio is 1.62, highlighting good cash generation relative to net income. Nonetheless, the declining Free Cash Flow raises concerns about future liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.61B	12.94B	12.36B	10.71B	15.22B	14.61B
Gross Profit	3.08B	2.84B	2.67B	2.21B	2.40B	2.73B
EBITDA	1.25B	991.39M	916.43M	341.30M	384.44M	-1.93B
Net Income	631.81M	457.77M	442.89M	-190.75M	294.45M	-2.09B
Balance Sheet
Total Assets	14.69B	14.17B	13.92B	13.91B	14.70B	14.55B
Cash, Cash Equivalents and Short-Term Investments	3.63B	3.56B	4.01B	3.86B	4.80B	4.23B
Total Debt	1.47B	1.83B	2.56B	3.28B	4.01B	4.39B
Total Liabilities	7.92B	7.65B	7.76B	8.10B	8.61B	8.65B
Stockholders Equity	6.77B	6.52B	6.16B	5.82B	6.10B	5.90B
Cash Flow
Free Cash Flow	0.00	382.57M	802.99M	-62.56M	-733.95M	-95.60M
Operating Cash Flow	0.00	740.24M	1.41B	437.14M	466.74M	371.80M
Investing Cash Flow	0.00	-353.22M	-426.78M	-543.20M	595.36M	-111.87M
Financing Cash Flow	0.00	-832.19M	-832.37M	-835.08M	-491.73M	1.04B

Unicafe Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1011.00
• 50DMA: Positive
• 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:2597, the sentiment is Positive. The current price of 1011 is below the 20-day moving average (MA) of 1013.50, above the 50-day MA of 997.62, and above the 200-day MA of 933.48, indicating a bullish trend. The MACD of 5.57 indicates Positive momentum. The RSI at 64.69 is Neutral, neither overbought nor oversold. The STOCH value of 65.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2597.

Unicafe Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2597	72 Outperform	¥13.57B	21.50	―	0.79%	18.53%	42.79%
2903	69 Neutral	¥16.53B	17.17	―	1.80%	7.66%	2.64%
2814	65 Neutral	¥10.24B	17.01	―	1.28%	6.33%	-0.73%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2901	61 Neutral	¥13.42B	24.74	―	0.58%	4.28%	―
2937	59 Neutral	¥15.82B	30.78	―	2.01%	3.00%	73.05%
2818	56 Neutral	¥12.06B	108.65	―	1.38%	10.84%	-18.43%