Pepper Food Service Co., Ltd. (3053) AI Stock Analysis

• Market Cap: ¥11.36B
• Dividend Yield: N/A
• Average Volume (3M): 530.08K
• Price to Earnings (P/E): 359.2
• Beta (1Y): 1.54
• Revenue Growth: -1.76%
• EPS Growth: 46.34%
• Country: JP
• Employees: 957
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -2.44
• Shares Outstanding: 61,424,000
• 10 Day Avg. Volume: 297,860
• 30 Day Avg. Volume: 530,080
• 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: ¥172.00
• Price Target Upside: -7.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: ¥172.00 ▼(-7.53% Downside)

The overall stock score is primarily influenced by the company's financial performance, which shows some recovery but is hindered by declining revenue and cash flow volatility. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield.

Pepper Food Service Co., Ltd. Business Overview & Revenue Model

Company Description

Pepper Food Service Co., Ltd. (3053) is a prominent player in the food service industry, specializing in the operation and management of various dining establishments. The company operates a diverse portfolio of brands, focusing on both casual dining and fast-food services. Its core offerings include a range of menu items featuring local and international cuisines, aimed at providing high-quality dining experiences to customers across different demographics.

How the Company Makes Money

Pepper Food Service Co., Ltd. generates revenue primarily through the sale of food and beverages at its restaurants and dining outlets. The company employs a multi-channel revenue model, which includes direct sales from its physical locations, as well as potential online sales through delivery partnerships and its own digital platforms. Key revenue streams include dine-in services, takeout orders, and catering services for events. Additionally, the company may engage in franchising agreements, allowing other entrepreneurs to operate under its brand, which provides franchise fees and a percentage of sales as ongoing revenue. Strategic partnerships with suppliers and delivery services also contribute to cost efficiencies and expanded market reach, further enhancing its earnings potential.

Pepper Food Service Co., Ltd. Financial Statement Overview

Summary

Pepper Food Service Co., Ltd. has shown improvements in financial health with positive net income and cash flow in 2024 and eliminated debt. However, declining revenue and historically volatile cash flows pose challenges to long-term growth.

Income Statement

Pepper Food Service Co., Ltd. showed improvements in its net income, turning positive in 2024 after several years of losses. The gross profit margin increased to 59.3% in 2024, indicating better cost management. However, revenue has been declining from 2019 to 2024, impacting overall growth potential. The net profit margin remains low at 0.2% in 2024, reflecting challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio improved significantly, as it eliminated total debt by 2024, reflecting a more robust financial structure. The equity ratio stands at 55.9%, showing a strong equity base relative to total assets. Despite these strengths, the overall asset base has decreased, indicating potential limitations in growth capacity.

Cash Flow

Operating cash flow turned positive in 2024, contributing to a positive free cash flow, which marks a recovery from negative cash flows in prior years. The operating cash flow to net income ratio is high at 7.5 in 2024, indicating strong cash generation relative to net income. However, the historical volatility in cash flows poses a risk to ongoing financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.59B	13.99B	14.59B	14.78B	18.95B	31.09B
Gross Profit	8.26B	8.11B	8.10B	8.07B	8.90B	12.27B
EBITDA	-400.00M	251.00M	-400.00M	-1.22B	1.15B	-1.64B
Net Income	-710.00M	28.00M	-710.00M	-1.93B	387.00M	-3.95B
Balance Sheet
Total Assets	5.64B	5.64B	5.64B	6.22B	10.90B	14.45B
Cash, Cash Equivalents and Short-Term Investments	2.12B	2.18B	2.12B	1.89B	4.36B	5.59B
Total Debt	560.00M	10.00M	557.00M	1.77B	4.07B	6.68B
Total Liabilities	3.10B	2.49B	3.10B	4.93B	7.61B	13.99B
Stockholders Equity	2.54B	3.15B	2.54B	1.29B	3.29B	455.00M
Cash Flow
Free Cash Flow	458.00M	102.00M	-485.00M	-90.00M	-687.00M	-7.43B
Operating Cash Flow	458.00M	210.00M	-445.00M	-44.00M	-658.00M	-7.16B
Investing Cash Flow	0.00	-169.00M	-62.00M	-146.00M	-404.00M	8.07B
Financing Cash Flow	0.00	17.00M	740.00M	-2.27B	-171.00M	2.26B

Pepper Food Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 186.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3053, the sentiment is Neutral. The current price of 186 is above the 20-day moving average (MA) of 183.05, below the 50-day MA of 196.12, and below the 200-day MA of 193.52, indicating a neutral trend. The MACD of -2.90 indicates Negative momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3053.

Pepper Food Service Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3082	64 Neutral	10.00B	33.32	15.60%	0.82%	9.53%	10.76%
3063	62 Neutral	9.37B	21.39	23.98%	0.52%	14.85%	16.65%
3418	58 Neutral	12.28B	27.41	0.00%	0.66%	6.57%	-32.00%
3547	56 Neutral	21.91B	31.51	15.41%	0.54%	24.04%	56.19%
3175	49 Neutral	12.47B	35.00	71.55%	―	3.37%	0.00%
3053	44 Neutral	¥11.36B	359.15		―	-1.76%	46.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%