Hiramatsu Inc. (2764) AI Stock Analysis

• Market Cap: ¥10.51B
• Dividend Yield: N/A
• Average Volume (3M): 355.86K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.77
• Revenue Growth: -26.12%
• EPS Growth: -110.09%
• Country: JP
• Employees: 703
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 6.97
• Shares Outstanding: 74,740,400
• 10 Day Avg. Volume: 539,410
• 30 Day Avg. Volume: 355,856
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 1.00
• P/FCF Ratio: -20.93
• 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: 65 Neutral
• Price Target: ¥180.00 ▲(57.89% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by mixed but improving financial performance (better operating efficiency and a strengthening balance sheet, but weak and volatile cash flow and uneven profitability). Technicals add support due to a clear uptrend, though momentum looks stretched (high RSI). Valuation detracts meaningfully due to a negative P/E and no dividend yield data.

Positive Factors

Improving balance sheet

A stronger equity base and a falling debt-to-equity ratio materially reduce solvency and refinancing risk for a capital-intensive hospitality operator. This durable improvement supports financing for renovations, steadier vendor terms, and resilience through travel demand cycles over months.

Robust gross profit margin

Sustained high gross margins indicate effective cost control in food, beverage and lodging operations and pricing power in the luxury segment. Over a multi-month horizon this margin buffer helps absorb revenue volatility and preserves operating leverage for profitable recovery.

Improving operating margins (EBIT/EBITDA)

Rising EBIT/EBITDA margins reflect structural efficiency gains—better cost discipline, higher occupancy mix, or F&B yield improvements. If sustained, higher operating profitability enhances cash generation capacity and supports reinvestment or deleveraging over the medium term.

Negative Factors

Declining and volatile revenue

Falling and inconsistent revenue undermines scale economics for luxury hotels and restaurants. With fixed costs inherent to high-end hospitality, persistent top-line weakness erodes margin sustainability and limits the company’s ability to fund capex or rebuild buffers over several months.

Weak cash conversion and FCF volatility

Poor conversion of accounting profits into cash constrains liquidity and forces reliance on financing to cover operations or investments. For a hospitality firm, unstable free cash flow raises refinancing risk and limits ability to sustain renovations, marketing, or new initiatives over the medium term.

Inconsistent profitability / negative net margins historically

Volatile net income and prior negative margins signal that operating gains may not yet translate to bottom-line resilience. This inconsistency weakens return on equity and makes long-term planning, dividend policy, and investor confidence more fragile across multiple reporting periods.

Hiramatsu Inc. Business Overview & Revenue Model

Company Description

Hiramatsu Inc. operates and manages cafes, restaurants, and hotels in Japan. The company was formerly known as Hiramatsu-Tei Ltd. and changed its name to Hiramatsu Inc. in December 1994. Hiramatsu Inc. was founded in 1982 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hiramatsu Inc. generates revenue primarily through its restaurant operations, which include sales from dining services, takeout, and catering. The company benefits from a multi-tiered revenue model, where its upscale dining locations attract high-income customers willing to pay premium prices for quality food and service. Additionally, Hiramatsu may engage in strategic partnerships or collaborations with suppliers and other businesses to enhance its product offerings and expand its market reach. Seasonal promotions and special events also contribute to revenue, drawing in customers and increasing overall sales. Overall, Hiramatsu's focus on quality and customer experience positions it well for profitability in a competitive industry.

Hiramatsu Inc. Financial Statement Overview

Summary

Financials show a recovery but remain uneven: margins (EBIT/EBITDA) have improved, and the balance sheet is strengthening with better leverage and a stable equity ratio. Offsetting this, revenue has been volatile with recent declines, profitability has been inconsistent, and cash conversion remains weak with historically negative/free-cash-flow volatility.

Income Statement

Hiramatsu Inc. has shown a volatile revenue trajectory over the years, with a decline in recent periods. The gross profit margin is robust, maintaining a healthy percentage, which indicates efficient cost management relative to revenue generation. However, net income fluctuations and negative net profit margins in past years suggest challenges in achieving consistent profitability. EBIT and EBITDA margins have improved significantly, indicating a turnaround from previous losses, but still reflect underlying profitability issues.

Balance Sheet

The company's balance sheet shows a solid equity base with an improving debt-to-equity ratio, suggesting a more balanced approach to leveraging. Return on equity has been volatile due to swings in net income. The equity ratio is stable, indicating a strong asset base relative to liabilities, which provides a cushion against financial instability. Overall, the balance sheet reflects a company in transition towards stronger financial health.

Cash Flow

Hiramatsu Inc.'s cash flow statement reveals significant volatility in free cash flow, with recent improvements following years of negative cash flow. The operating cash flow to net income ratio is concerning, indicating challenges in converting profit into cash. The free cash flow to net income ratio suggests ongoing difficulty in generating cash from operations. However, recent financing activities have bolstered cash reserves, supporting liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.76B	10.66B	13.86B	12.38B	9.22B	6.27B
Gross Profit	5.44B	5.99B	7.38B	6.43B	4.16B	2.62B
EBITDA	589.98M	600.13M	1.04B	186.15M	-1.15B	-1.81B
Net Income	1.66B	1.53B	-153.11M	-904.02M	-2.47B	-4.11B
Balance Sheet
Total Assets	11.64B	12.15B	21.87B	21.76B	22.80B	19.38B
Cash, Cash Equivalents and Short-Term Investments	6.02B	6.65B	5.63B	5.26B	5.58B	640.33M
Total Debt	3.77B	3.83B	14.62B	14.65B	14.70B	13.65B
Total Liabilities	5.72B	6.26B	17.53B	17.24B	17.42B	16.19B
Stockholders Equity	5.93B	5.90B	4.35B	4.52B	5.39B	3.19B
Cash Flow
Free Cash Flow	0.00	-509.25M	444.26M	-303.00M	-333.97M	-5.67B
Operating Cash Flow	0.00	-346.78M	1.15B	-99.42M	-68.25M	-2.70B
Investing Cash Flow	0.00	12.14B	-744.95M	-179.63M	-63.89M	-2.87B
Financing Cash Flow	0.00	-10.79B	-38.24M	-42.65M	5.07B	1.58B

Hiramatsu Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 114.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2764, the sentiment is Neutral. The current price of 114 is below the 20-day moving average (MA) of 153.85, below the 50-day MA of 140.64, and below the 200-day MA of 129.66, indicating a neutral trend. The MACD of 4.33 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 10.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2764.

Hiramatsu Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9701	66 Neutral	¥15.68B	6.69	―	0.73%	3.35%	-41.97%
2764	65 Neutral	¥10.51B	4.48	―	―	-26.12%	-110.09%
7522	65 Neutral	¥37.91B	3.96	―	1.04%	5.47%	61.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3329	61 Neutral	¥17.15B	19.18	―	0.96%	3.21%	1.96%
7621	60 Neutral	¥18.70B	15.73	―	0.45%	2.86%	-129.51%
8163	55 Neutral	¥52.18B	35.87	―	0.62%	17.12%	-58.47%