Karula Co., Ltd. (2789) AI Stock Analysis

• Market Cap: ¥2.84B
• Dividend Yield: 1.06%
• Average Volume (3M): 2.57K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.08
• Revenue Growth: 5.85%
• EPS Growth: -26.82%
• Country: JP
• Employees: 249
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): 14.05
• Shares Outstanding: 6,021,112
• 10 Day Avg. Volume: 2,680
• 30 Day Avg. Volume: 2,566
• 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: ¥509.00
• Price Target Upside: 7.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥509.00 ▲(7.84% Upside)

Karula Co., Ltd. shows a strong financial recovery and attractive valuation, driving its overall score. Technical indicators suggest stability, but areas such as declining free cash flow require attention. The lack of recent earnings call data means potential future sentiment is less clear.

Positive Factors

Revenue Growth

Steady revenue growth indicates that Karula Co., Ltd. is effectively expanding its market reach and customer base, which is crucial for long-term business sustainability and competitiveness in the restaurant industry.

Profit Margins

Strong profit margins reflect efficient cost management and operational efficiency, which enhance the company's ability to generate profits and reinvest in growth opportunities.

Return on Equity

A high ROE indicates effective management and the company's ability to generate returns on shareholders' investments, supporting long-term financial health and investor confidence.

Negative Factors

Declining Free Cash Flow

Declining free cash flow can limit the company's ability to invest in growth initiatives, pay down debt, or return capital to shareholders, potentially impacting long-term financial flexibility.

Net Income Decrease

A decrease in net income suggests challenges in maintaining profitability, which could affect the company's ability to sustain growth and meet financial obligations over time.

Significant Debt Levels

High debt levels can strain the company's financial resources and limit its ability to respond to market changes or invest in new opportunities, potentially impacting long-term stability.

Karula Co., Ltd. Business Overview & Revenue Model

Company Description

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How the Company Makes Money

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Karula Co., Ltd. Financial Statement Overview

Summary

Karula Co., Ltd. has demonstrated a commendable recovery in its financial performance, with strong gross and net profit margins and steady revenue growth. However, challenges such as declining free cash flow and net income need attention to sustain growth.

Income Statement

Karula Co., Ltd. has shown a strong recovery in its income statement metrics. The gross profit margin for the latest year is approximately 68.5%, indicating efficient cost management. The net profit margin improved to 5.0% from a negative margin two years ago, reflecting a turnaround in profitability. Revenue growth rate is 6.2%, demonstrating steady top-line growth. EBIT and EBITDA margins are 5.0% and 7.9% respectively, highlighting improved operational efficiency. However, the net income has decreased compared to the previous year, suggesting potential challenges in maintaining profitability.

Balance Sheet

The balance sheet of Karula Co., Ltd. shows a moderate financial position. The debt-to-equity ratio is 1.10, indicating a balanced leverage level. Return on equity (ROE) is 18.4%, which is a positive sign of profitability relative to shareholders' equity. The equity ratio stands at 39.4%, showing a reasonable proportion of equity financing. However, the company's total debt remains significant, which could pose a risk if not managed effectively.

Cash Flow

Karula Co., Ltd. has a stable cash flow position. The free cash flow growth rate is -27.8%, indicating a decline in free cash flow generation. The operating cash flow to net income ratio is 1.05, suggesting that the company is generating cash efficiently relative to its net income. The free cash flow to net income ratio is 0.82, which is healthy but shows a decline from the previous year. The company needs to focus on improving its free cash flow generation to support future growth and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.26B	7.26B	6.84B	6.04B	5.20B	5.29B
Gross Profit	5.11B	4.98B	4.83B	4.20B	3.61B	3.61B
EBITDA	567.39M	570.77M	520.43M	148.78M	-151.94M	-674.79M
Net Income	363.34M	363.31M	437.00M	-61.35M	-448.63M	-977.77M
Balance Sheet
Total Assets	5.02B	5.02B	5.58B	5.30B	5.62B	5.72B
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.01B	1.56B	1.28B	1.30B	911.61M
Total Debt	2.18B	2.18B	3.02B	3.12B	3.49B	3.19B
Total Liabilities	3.04B	3.04B	3.93B	3.97B	4.21B	3.86B
Stockholders Equity	1.98B	1.98B	1.65B	1.34B	1.41B	1.85B
Cash Flow
Free Cash Flow	0.00	299.53M	414.86M	107.54M	45.03M	-789.44M
Operating Cash Flow	0.00	382.02M	504.03M	186.11M	127.41M	-682.48M
Investing Cash Flow	0.00	-55.68M	2.32M	45.05M	-31.71M	-39.63M
Financing Cash Flow	0.00	-868.89M	-223.11M	-369.17M	296.20M	1.05B

Karula Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 472.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 472 is above the 20-day moving average (MA) of 465.55, above the 50-day MA of 460.28, and above the 200-day MA of 461.17, indicating a bullish trend. The MACD of 3.77 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 85.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3372	76 Outperform	¥3.47B	9.35		―	4.08%	37.93%
8181	75 Outperform	¥2.73B	5.92		1.41%	3.77%	205.69%
2789	73 Outperform	¥2.84B	8.59		1.06%	5.85%	-26.82%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
3358	61 Neutral	¥3.36B	171.69		―	3.29%	-46.50%
3224	60 Neutral	¥3.30B	―		1.43%	-2.15%	72.23%
2762	46 Neutral	¥3.77B	―		―	3.76%	3.77%