Kura Sushi, Inc. (2695) AI Stock Analysis

• Market Cap: ¥155.45B
• Dividend Yield: 0.51%
• Average Volume (3M): 251.75K
• Price to Earnings (P/E): 126.4
• Beta (1Y): 0.64
• Revenue Growth: 4.82%
• EPS Growth: -79.12%
• Country: JP
• Employees: 2,824
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Restaurants
• EPS (TTM): 26.01
• Shares Outstanding: 41,399,600
• 10 Day Avg. Volume: 227,170
• 30 Day Avg. Volume: 251,753
• 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: ¥3,709.00
• Price Target Upside: -5.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: ¥4,318.00 ▲(10.15% Upside)

The overall stock score of 70.6 is primarily driven by strong financial performance, particularly in revenue growth and cash flow generation. Technical analysis suggests a positive trend, but caution is advised due to overbought signals. The high P/E ratio indicates potential overvaluation, which is a significant risk factor.

Kura Sushi, Inc. Business Overview & Revenue Model

Company Description

Kura Sushi, Inc. (2695) is a Japan-based company that operates a chain of sushi restaurants offering a unique dining experience. The company is known for its use of a revolving sushi concept, where dishes are placed on a conveyor belt that circulates throughout the restaurant. Kura Sushi is part of the broader food service industry, focusing on providing high-quality, affordable sushi and Japanese cuisine to customers. The company's core services include dine-in experiences at its restaurants, which emphasize efficiency, innovation, and customer engagement through technology.

How the Company Makes Money

Kura Sushi, Inc. generates revenue primarily through sales from its chain of sushi restaurants. The key revenue streams include direct sales of sushi and other menu items to customers dining in its establishments. The company's unique selling proposition lies in its revolving sushi concept and the use of technology to enhance the customer experience, which helps attract a steady flow of patrons. Additionally, the company may benefit from partnerships and collaborations with other entities in the food service and technology sectors, which can enhance its market presence and operational efficiency. Kura Sushi's ability to maintain competitive pricing while delivering quality products is critical to its financial performance.

Kura Sushi, Inc. Financial Statement Overview

Summary

Kura Sushi, Inc. shows strong financial health with robust revenue growth and high gross margins. The company has improved profitability and demonstrates effective cost management. Although the balance sheet shows moderate leverage, financial stability is maintained with a solid equity base. The impressive cash flow growth highlights strong cash generation capabilities.

Income Statement

Kura Sushi, Inc. shows robust revenue growth, with a 11.1% increase from 2023 to 2024, indicating a strong business trajectory. The gross profit margin has been consistently high, reaching 59.3% in 2024, demonstrating effective cost management. Net profit margin improved significantly to 1.4% in 2024 from 0.4% in the previous year, highlighting enhanced profitability. The EBIT and EBITDA margins have also improved year-on-year, indicating operational efficiency gains.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 41.8%, reflecting financial stability. However, the debt-to-equity ratio stands at 0.64, suggesting moderate leverage which could pose risks if not managed carefully. Return on equity is relatively low at 5.5%, indicating room for improvement in generating returns from shareholders' equity.

Cash Flow

Free cash flow grew substantially by 451.0% from 2023 to 2024, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is robust at 5.7, indicating efficient cash conversion. The free cash flow to net income ratio improved significantly, pointing to effective capital management and investment strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	237.40B	234.95B	211.41B	183.05B	147.59B	135.84B
Gross Profit	141.04B	139.23B	119.23B	100.53B	80.80B	74.93B
EBITDA	14.64B	15.24B	11.32B	9.76B	9.35B	5.64B
Net Income	2.88B	3.23B	863.00M	744.00M	1.90B	-263.00M
Balance Sheet
Total Assets	149.88B	139.45B	130.12B	109.62B	98.99B	85.10B
Cash, Cash Equivalents and Short-Term Investments	28.14B	23.04B	20.19B	13.17B	18.75B	20.61B
Total Debt	35.15B	37.46B	35.00B	28.51B	21.95B	15.04B
Total Liabilities	66.31B	66.50B	59.55B	50.66B	44.33B	37.54B
Stockholders Equity	62.08B	58.35B	55.54B	51.04B	48.59B	44.33B
Cash Flow
Free Cash Flow	0.00	7.78B	1.41B	-586.00M	-3.68B	1.70B
Operating Cash Flow	0.00	18.36B	13.73B	9.94B	4.74B	8.94B
Investing Cash Flow	0.00	-10.35B	-14.54B	-12.11B	-9.48B	-8.34B
Financing Cash Flow	0.00	-4.01B	5.50B	-4.70B	2.46B	-1.16B

Kura Sushi, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3920.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2695, the sentiment is Positive. The current price of 3920 is above the 20-day moving average (MA) of 3861.75, above the 50-day MA of 3806.90, and above the 200-day MA of 3329.28, indicating a bullish trend. The MACD of 23.40 indicates Negative momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 86.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2695.

Kura Sushi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2695	71 Outperform	¥155.45B	126.36		0.51%	4.82%	-79.12%
8153	70 Outperform	¥123.65B	34.88		0.75%	4.32%	29.02%
7630	68 Neutral	¥148.44B	45.72		1.72%	10.63%	22.33%
7421	66 Neutral	¥81.26B	67.11		0.30%	1.53%	-15.91%
9828	66 Neutral	¥62.70B	13.06		1.98%	8.33%	24.64%
Sector *	61 Neutral	$17.92B	12.81	-3.11%	2.97%	1.30%	-14.28%
9861	53 Neutral	¥200.92B	52.03		0.64%	9.92%	-26.57%

Kura Sushi, Inc. Corporate Events

Kura Sushi Reports Decline in Profits Despite Sales Growth

Kura Sushi, Inc. reported its consolidated financial results for the six months ending April 30, 2025, showing a slight increase in net sales by 1.3% to ¥117,625 million. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with drops of 48.5%, 50.1%, and 50.5% respectively. This downturn reflects challenges in maintaining profitability despite increased sales, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:2695) stock is a Hold with a Yen3800.00 price target. To see the full list of analyst forecasts on Kura Sushi, Inc. stock, see the JP:2695 Stock Forecast page.