OOTOYA Holdings Co., Ltd. (2705) AI Stock Analysis

• Market Cap: ¥41.99B
• Dividend Yield: 0.17%
• Average Volume (3M): 6.85K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.22
• Revenue Growth: 15.53%
• EPS Growth: -26.93%
• Country: JP
• Employees: 629
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 57.38
• Shares Outstanding: 7,263,300
• 10 Day Avg. Volume: 4,350
• 30 Day Avg. Volume: 6,850
• PEG Ratio: -3.10
• Price to Book (P/B): 8.24
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 54.03
• 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: ¥5,904.00 ▲(5.62% Upside)

The overall stock score is primarily influenced by solid financial performance, with strong revenue growth and improved profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The company has shown consistent improvement in revenue, with a significant growth rate of 12.5% between 2024 and 2025, indicating strong market demand and effective business strategies.

Balance Sheet Health

Improved leverage management and a healthy equity ratio of 37.7% in 2025 suggest a stable financial foundation, enhancing long-term sustainability and reducing financial risk.

Profitability Margins

The transition from negative to positive net profit margins reflects effective cost management and operational efficiency, supporting sustained profitability and competitive positioning.

Negative Factors

Declining Net Income

A decrease in net income could signal challenges in maintaining profitability, potentially impacting future growth and requiring strategic adjustments to sustain financial performance.

Free Cash Flow Variability

Decreased free cash flow generation poses a risk to liquidity, limiting the company's ability to invest in growth opportunities and manage financial obligations effectively.

Return on Equity Decline

A declining ROE indicates reduced efficiency in generating returns from equity, which may affect investor confidence and necessitate improvements in operational performance.

OOTOYA Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

OOTOYA Holdings Co., Ltd. (2705) is a prominent Japanese company specializing in the operation of casual dining restaurants. The company is known for its signature brand, OOTOYA, which focuses on providing authentic Japanese cuisine that emphasizes health and quality. OOTOYA Holdings operates a network of restaurants across Japan and internationally, catering to a diverse customer base seeking nutritious and delicious meal options in a comfortable dining environment. The company also engages in food product development and retail, further expanding its market presence.

How the Company Makes Money

OOTOYA Holdings generates revenue primarily through the operation of its restaurant chain, where it earns income from food and beverage sales. The company's revenue model is based on a combination of dine-in, takeout, and delivery services, catering to various customer preferences. Key revenue streams include sales from its restaurant locations, which are strategically positioned in urban areas to attract a high volume of customers. Additionally, OOTOYA may benefit from partnerships with food suppliers, which can help to ensure cost-effective sourcing of high-quality ingredients. The company also explores opportunities in expanding its brand through franchising and licensing, which can provide additional revenue channels outside of direct restaurant operations.

OOTOYA Holdings Co., Ltd. Financial Statement Overview

Summary

OOTOYA Holdings Co., Ltd. shows strong revenue growth and improved profitability margins, with a stable gross profit margin. The balance sheet reflects better leverage management and a healthy equity ratio. However, the decrease in net income and variability in free cash flow generation are concerns.

Income Statement

OOTOYA Holdings Co., Ltd. has shown a consistent improvement in revenue from 2021 to 2025, with a significant revenue growth rate of 12.5% between 2024 and 2025. The net profit margin has improved from negative figures in 2021 to 3.9% in 2025. The gross profit margin is stable at around 58%, indicating effective cost management. However, net income decreased slightly in 2025 compared to 2024, which is a point of concern.

Balance Sheet

The company's debt-to-equity ratio has improved, dropping from 2.79 in 2021 to 0.36 in 2025, showing better leverage management. The equity ratio has increased to 37.7% in 2025, indicating a healthy balance between debt and equity. However, the return on equity (ROE) was 27.3% in 2025, which is lower than the previous year due to the decrease in net income.

Cash Flow

Free cash flow showed variability with a decrease from 2024 to 2025. Despite this, the operating cash flow remains positive, with a solid operating cash flow to net income ratio of 1.73 in 2025. The free cash flow to net income ratio decreased, reflecting reduced free cash flow generation, which poses a risk to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.68B	31.39B	27.89B	23.85B	18.83B	16.14B
Gross Profit	18.75B	18.27B	16.58B	13.47B	10.86B	8.87B
EBITDA	2.17B	2.08B	1.94B	772.00M	1.88B	-3.94B
Net Income	1.19B	1.23B	1.40B	276.00M	1.91B	-4.67B
Balance Sheet
Total Assets	10.12B	11.87B	10.85B	9.60B	9.81B	9.11B
Cash, Cash Equivalents and Short-Term Investments	2.61B	4.24B	4.54B	3.94B	4.33B	3.67B
Total Debt	1.45B	1.60B	1.00B	1.65B	2.31B	3.91B
Total Liabilities	6.83B	7.16B	5.90B	5.89B	6.39B	7.63B
Stockholders Equity	3.06B	4.48B	4.78B	3.59B	3.34B	1.40B
Cash Flow
Free Cash Flow	0.00	683.00M	1.43B	200.00M	2.17B	-3.21B
Operating Cash Flow	0.00	2.13B	2.23B	726.00M	2.35B	-2.70B
Investing Cash Flow	0.00	-1.49B	-787.00M	-478.00M	-160.00M	-496.00M
Financing Cash Flow	0.00	-1.05B	-889.00M	-773.00M	-1.59B	4.98B

OOTOYA Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5590.00
• 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:2705, the sentiment is Positive. The current price of 5590 is below the 20-day moving average (MA) of 5737.50, below the 50-day MA of 5682.00, and above the 200-day MA of 5387.43, indicating a bullish trend. The MACD of 37.04 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 79.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2705.

OOTOYA Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2705	62 Neutral	¥41.99B	37.56	―	0.17%	15.53%	-26.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2753	61 Neutral	¥27.43B	18.82	―	2.53%	2.93%	-8.37%
3198	60 Neutral	¥46.61B	35.49	―	1.32%	2.90%	-26.37%
7522	60 Neutral	¥38.72B	10.06	―	1.06%	5.47%	61.89%
8163	55 Neutral	¥47.22B	54.30	―	0.62%	17.12%	-58.47%
3068	54 Neutral	¥18.99B	119.48	―	0.56%	1.09%	-128.63%