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Karula Co., Ltd.
(2789)
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Rating:53Neutral
Price Target:
¥467.00
▼(-1.89% Downside)
Action:Reiterated
Date:04/08/26
The score is primarily driven by improving financial results (recovery to profitability and revenue growth) but held back by margin compression, still-meaningful leverage, and weak recent technical momentum. Valuation is a modest positive with a relatively low P/E and small dividend yield.
Positive Factors
Revenue & Profit Recovery
Sustained top-line growth from 2022–2026 alongside a shift from multi-year losses to consistent profitability demonstrates durable demand and effective operational turnaround. This underpins a more predictable earnings base and supports ongoing cash generation and reinvestment over the next several months.
Negative Factors
Margin Compression
A roughly halved net margin over two years points to rising input costs or weakening pricing power. Persistent margin erosion reduces incremental profitability, narrows buffers against downturns, and limits the firm's ability to convert revenue gains into sustainable earnings and cash flow without substantive cost or pricing action.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profit Recovery
Sustained top-line growth from 2022–2026 alongside a shift from multi-year losses to consistent profitability demonstrates durable demand and effective operational turnaround. This underpins a more predictable earnings base and supports ongoing cash generation and reinvestment over the next several months.
Read all positive factors
Karula Co., Ltd. (2789) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.81B
Dividend Yield1.01%
Average Volume (3M)3.87K
Price to Earnings (P/E)15.4
Beta (1Y)0.10
Revenue Growth4.26%
EPS Growth-44.89%
CountryJP
Employees249
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)41.63
Shares Outstanding6,021,112
10 Day Avg. Volume4,240
30 Day Avg. Volume3,873
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)1.22
Price to Sales (P/S)0.35
P/FCF Ratio29.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Karula Co., Ltd. Business Overview & Revenue Model
Company Description
Karula Co.,LTD. operates a network of family-friendly Japanese restaurants throughout Japan, focusing its operations primarily within the Tohoku and Northern Kanto regions. Its diverse portfolio of dining establishments encompasses traditional Jap...
How the Company Makes Money
null...
Karula Co., Ltd. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
54
Neutral
Cash Flow
49
Neutral
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.54B | 7.26B | 6.84B | 6.04B | 5.20B |
| Gross Profit | 5.08B | 4.98B | 4.71B | 4.08B | 3.45B |
| EBITDA | 488.57M | 499.19M | 482.27M | 138.53M | -229.15M |
| Net Income | 239.98M | 363.31M | 437.00M | -61.35M | -448.63M |
Balance Sheet | |||||
| Total Assets | 5.43B | 5.02B | 5.58B | 5.30B | 5.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.20B | 1.01B | 1.56B | 1.28B | 1.30B |
| Total Debt | 2.30B | 2.18B | 3.02B | 3.12B | 3.49B |
| Total Liabilities | 3.24B | 3.04B | 3.93B | 3.97B | 4.21B |
| Stockholders Equity | 2.19B | 1.98B | 1.65B | 1.34B | 1.41B |
Cash Flow | |||||
| Free Cash Flow | 89.34M | 299.53M | 422.90M | 109.30M | 51.70M |
| Operating Cash Flow | 440.62M | 382.02M | 504.03M | 186.11M | 127.41M |
| Investing Cash Flow | -346.60M | -55.68M | 2.32M | 45.05M | -31.71M |
| Financing Cash Flow | 98.47M | -868.89M | -223.11M | -369.17M | 296.20M |
Karula Co., Ltd. Technical Analysis
Positive
476.00
Price Trends
460.28
Positive
462.76
Positive
471.60
Negative
Market Momentum
1.51
Negative
62.81
Neutral
84.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2789, the sentiment is Positive. The current price of 476 is above the 20-day moving average (MA) of 464.20, above the 50-day MA of 460.28, and above the 200-day MA of 471.60, indicating a neutral trend. The MACD of 1.51 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 84.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2789.
Karula Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | ¥5.73B | 16.95 | ― | ― | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥3.03B | 23.39 | ― | 1.59% | 13.18% | 51.15% | |
59 Neutral | ¥3.00B | 24.25 | ― | ― | 0.15% | -67.27% | |
53 Neutral | ¥2.81B | 15.35 | ― | 1.01% | 4.26% | -44.89% | |
48 Neutral | ¥3.65B | 54.14 | ― | ― | 25.09% | 203.78% | |
46 Neutral | ¥3.55B | -3.55 | ― | ― | 7.33% | 2.46% |
* Consumer Cyclical Sector Average
JP:2789
Karula Co., Ltd.
467.00
15.61
3.46%
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-8.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.