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

• Market Cap: ¥42.64B
• Dividend Yield: 0.17%
• Average Volume (3M): 12.74K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.25
• Revenue Growth: 13.81%
• EPS Growth: -14.64%
• Country: JP
• Employees: 629
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 35.47
• Shares Outstanding: 7,263,300
• 10 Day Avg. Volume: 16,110
• 30 Day Avg. Volume: 12,743
• 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: ¥5,707.00
• Price Target Upside: -2.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥5,707.00 ▼(-2.94% Downside)

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. (2705) is a Japanese company primarily engaged in the operation of a chain of casual dining restaurants. The company is known for offering a menu that emphasizes traditional Japanese home-style cooking, catering to a wide range of customers seeking healthy and balanced meals. Their restaurants are recognized for their warm and inviting atmospheres, designed to provide a comfortable dining experience. OOTOYA operates both domestically in Japan and internationally, with a presence in several other Asian countries.

How the Company Makes Money

OOTOYA Holdings Co., Ltd. generates revenue primarily through the operation of its restaurant chain, which offers dine-in and takeout services. The company also earns income through franchise fees and royalties from its international franchises. Key revenue streams include sales of food and beverages at their outlets, as well as licensing and franchise operations that allow them to expand their brand presence without direct operational involvement. Strategic partnerships with local businesses in international markets further enhance their revenue by adapting their business model to local tastes and preferences, thereby increasing market penetration and brand visibility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.39B	31.39B	27.89B	23.85B	18.83B	16.14B
Gross Profit	18.27B	18.27B	16.58B	13.47B	10.86B	8.87B
EBITDA	2.03B	2.08B	1.94B	772.00M	1.88B	-3.94B
Net Income	1.23B	1.23B	1.40B	276.00M	1.91B	-4.67B
Balance Sheet
Total Assets	11.87B	11.87B	10.85B	9.60B	9.81B	9.11B
Cash, Cash Equivalents and Short-Term Investments	4.24B	4.24B	4.54B	3.94B	4.33B	3.67B
Total Debt	1.60B	1.60B	1.00B	1.65B	2.31B	3.91B
Total Liabilities	7.16B	7.16B	5.90B	5.89B	6.39B	7.63B
Stockholders Equity	4.48B	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: 5880.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5880 is above the 20-day moving average (MA) of 5686.00, above the 50-day MA of 5477.20, and above the 200-day MA of 5250.88, indicating a bullish trend. The MACD of 122.77 indicates Negative momentum. The RSI at 75.28 is Negative, neither overbought nor oversold. The STOCH value of 62.53 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	73 Outperform	¥32.57B	20.58	7.91%	2.15%	3.40%	1.61%
2705	67 Neutral	¥42.64B	35.84	―	0.17%	13.81%	-14.64%
8163	67 Neutral	¥53.47B	61.48	5.61%	0.58%	14.44%	-55.16%
7522	66 Neutral	¥40.71B	17.29	9.24%	1.00%	6.41%	-35.96%
3198	65 Neutral	¥50.14B	35.88	17.01%	1.18%	2.95%	-17.77%
3068	59 Neutral	¥19.09B	120.07	14.47%	0.56%	1.45%	-87.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%