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

• Market Cap: ¥2.80B
• Dividend Yield: 1.01%
• Average Volume (3M): 3.87K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.11
• Revenue Growth: 5.70%
• EPS Growth: -12.36%
• Country: JP
• Employees: 249
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -3.89
• Shares Outstanding: 6,021,112
• 10 Day Avg. Volume: 4,240
• 30 Day Avg. Volume: 3,873
• PEG Ratio: -0.33
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 29.87
• 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: 53 Neutral
• Price Target: ¥467.00 ▼(-1.89% Downside)
• Action: Reiterated Date: 04/08/26
• Date: Action: Reiterated 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.

Karula Co., Ltd. Business Overview & Revenue Model

Company Description

Karula Co.,LTD. operates Japanese style family restaurants in Japan. It operates stores in Tohoku and Northern Kanto region, including Japanese-style restaurant Marumatsu and Jushoan stores; crab restaurant Kani Masamune; pork cutlet restaurant Ka...

Read more

Karula Co.,LTD. operates Japanese style family restaurants in Japan. It operates stores in Tohoku and Northern Kanto region, including Japanese-style restaurant Marumatsu and Jushoan stores; crab restaurant Kani Masamune; pork cutlet restaurant Ka...

How the Company Makes Money

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Karula Co., Ltd. Financial Statement Overview

Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	7.46B	7.54B	7.26B	6.84B	6.04B	5.20B
Gross Profit	5.20B	5.08B	4.98B	4.71B	4.08B	3.45B
EBITDA	498.22M	488.57M	499.19M	482.27M	138.53M	-229.15M
Net Income	320.54M	239.98M	363.31M	437.00M	-61.35M	-448.63M
Balance Sheet
Total Assets	5.61B	5.43B	5.02B	5.58B	5.30B	5.62B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.20B	1.01B	1.56B	1.28B	1.30B
Total Debt	2.36B	2.30B	2.18B	3.02B	3.12B	3.49B
Total Liabilities	3.41B	3.24B	3.04B	3.93B	3.97B	4.21B
Stockholders Equity	2.19B	2.19B	1.98B	1.65B	1.34B	1.41B
Cash Flow
Free Cash Flow	0.00	89.34M	299.53M	422.90M	109.30M	51.70M
Operating Cash Flow	0.00	440.62M	382.02M	504.03M	186.11M	127.41M
Investing Cash Flow	0.00	-346.60M	-55.68M	2.32M	45.05M	-31.71M
Financing Cash Flow	0.00	98.47M	-868.89M	-223.11M	-369.17M	296.20M

Karula Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 476.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 476 is above the 20-day moving average (MA) of 460.45, above the 50-day MA of 470.02, and above the 200-day MA of 469.70, indicating a neutral trend. The MACD of -1.38 indicates Negative momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2789.

Karula Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3077	73 Outperform	¥5.89B	11.39	―	―	6.16%	86.76%
3372	66 Neutral	¥3.05B	4.96	―	―	4.50%	11.40%
3358	63 Neutral	¥3.98B	12.53	―	―	3.85%	-59.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
138A	60 Neutral	¥2.94B	25.95	―	1.59%	11.33%	-21.04%
2789	53 Neutral	¥2.80B	11.12	―	1.01%	5.70%	-12.36%
2762	47 Neutral	¥3.98B	-7.98	―	―	3.26%	4.62%