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

• Market Cap: ¥38.47B
• Dividend Yield: 0.09%
• Average Volume (3M): 3.06K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.30
• Revenue Growth: 12.52%
• EPS Growth: -5.69%
• Country: JP
• Employees: 629
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Restaurants
• EPS (TTM): 34.92
• Shares Outstanding: 7,257,300
• 10 Day Avg. Volume: 3,650
• 30 Day Avg. Volume: 3,063
• PEG Ratio: 0.00
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.03
• 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

• Rating: 67 Neutral
• Price Target: ¥5,707.00 ▲(7.68%Upside)

OOTOYA Holdings Co., Ltd. shows a solid financial performance with significant improvements in revenue growth and balance sheet health, though the recent decline in net income poses a concern. The technical analysis indicates bullish momentum, supporting a positive outlook. However, the high P/E ratio and low dividend yield suggest valuation concerns, which moderate the overall score.

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

Company Description

OOTOYA Holdings Co., Ltd. is a Japanese company primarily engaged in the operation of a restaurant chain specializing in traditional Japanese home-style meals. The company is recognized for offering a variety of set meals that emphasize nutritional balance and quality ingredients. OOTOYA operates primarily in the restaurant sector, with a focus on casual dining experiences across its multiple locations in Japan and internationally.

How the Company Makes Money

OOTOYA Holdings Co., Ltd. generates revenue primarily through its restaurant operations. The company's primary source of income is the sale of meals and beverages at its various dining establishments. OOTOYA focuses on providing traditional Japanese meals, which attracts a loyal customer base seeking authentic and nutritious dining options. The company also explores franchising opportunities, allowing it to expand its brand presence and generate additional income through franchise fees and royalties. Partnerships with local suppliers ensure a steady supply of high-quality ingredients, contributing to the company's ability to maintain its standards and appeal to health-conscious consumers.

OOTOYA Holdings Co., Ltd. Financial Statement Overview

Summary

OOTOYA Holdings Co., Ltd. demonstrates a positive trajectory in revenue growth and profitability margins, indicating a recovery from previous years' losses. The balance sheet shows improved leverage and equity ratios, although the declining net income in the latest year raises some concerns. Cash flow management shows positive trends but needs attention to sustain free cash flow generation. Overall, the financial health is solid but requires careful monitoring of profitability and cash flows.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
30.48B	31.39B	27.89B	23.85B	18.83B	16.14B
	Gross Profit
18.09B	18.27B	16.58B	13.47B	10.86B	8.87B
	EBIT
1.81B	1.66B	1.65B	271.00M	-594.00M	-3.34B
	EBITDA
2.16B	2.08B	1.94B	772.00M	-242.00M	-3.91B
	Net Income Common Stockholders
1.43B	1.23B	1.40B	276.00M	1.91B	-4.67B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.99B	4.24B	4.54B	3.94B	4.33B	3.67B
	Total Assets
10.29B	11.87B	10.85B	9.60B	9.81B	9.11B
	Total Debt
700.00M	1.60B	1.00B	1.65B	2.31B	3.91B
	Net Debt
-2.29B	-2.64B	-3.54B	-2.30B	-2.01B	238.00M
	Total Liabilities
5.94B	7.16B	5.90B	5.89B	6.39B	7.63B
	Stockholders Equity
4.14B	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: 5300.00
• 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 5300 is above the 20-day moving average (MA) of 5259.50, above the 50-day MA of 5206.00, and above the 200-day MA of 5130.02, indicating a bullish trend. The MACD of 17.27 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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
2753	74 Outperform	¥29.65B	17.04		2.36%	6.21%	32.82%
3198	70 Outperform	¥49.48B	33.54		1.20%	4.50%	-10.16%
2705	67 Neutral	¥38.47B	31.39		0.09%	12.52%	-5.69%
8163	67 Neutral	¥49.99B	53.60		0.62%	12.04%	-48.52%
7522	65 Neutral	¥41.16B	11.54		0.99%	7.79%	-5.17%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
3068	55 Neutral	¥19.06B	20.23		0.56%	3.24%	-11.45%