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

• Market Cap: ¥13.08B
• Dividend Yield: N/A
• Average Volume (3M): 394.64K
• Price to Earnings (P/E): 352.5
• Beta (1Y): 1.65
• Revenue Growth: -4.42%
• EPS Growth: N/A
• Country: JP
• Employees: 957
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Restaurants
• EPS (TTM): -0.71
• Shares Outstanding: 61,424,000
• 10 Day Avg. Volume: 396,660
• 30 Day Avg. Volume: 394,643
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 54 Neutral
• Price Target: ―

Pepper Food Service Co., Ltd. shows a moderate financial recovery with positive net income and cash flow, and no debt. However, declining revenue and volatile cash flows pose challenges. Technical indicators suggest positive momentum, but the high P/E ratio points to overvaluation concerns. Overall, while there are signs of financial stabilization, valuation remains a significant risk.

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

Company Description

Pepper Food Service Co., Ltd. is a Japanese company primarily engaged in the food service industry. The company operates a number of restaurant chains, offering various dining experiences to customers. Its core products and services include the operation of steakhouse restaurants and other dining establishments, with a focus on providing high-quality food and exceptional service.

How the Company Makes Money

Pepper Food Service Co., Ltd. generates revenue primarily through the operation of its restaurant chains. The company's key revenue streams include sales from food and beverages served in its establishments. Additionally, the company may benefit from franchising fees and royalties if it licenses its brand to franchisees. Strategic partnerships with suppliers and other stakeholders in the food service industry can also contribute to cost efficiencies and revenue growth. The company leverages its brand reputation and customer loyalty to maintain and increase its market share in the competitive food service sector.

Pepper Food Service Co., Ltd. Financial Statement Overview

Summary

Pepper Food Service Co., Ltd. has improved its financial health by achieving positive net income and cash flow in 2024, alongside eliminating its debt. Despite these improvements, the company faces ongoing challenges with declining revenue and historically volatile cash flows, which may hinder long-term growth prospects.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.99B	14.59B	14.78B	18.95B	31.09B
Gross Profit	8.29B	8.10B	8.07B	8.90B	12.27B
EBITDA	251.00M	-394.00M	-1.22B	1.15B	-1.64B
Net Income	28.00M	-710.00M	-1.93B	387.00M	-3.95B
Balance Sheet
Total Assets	5.64B	5.64B	6.22B	10.90B	14.45B
Cash, Cash Equivalents and Short-Term Investments	2.18B	2.12B	1.89B	4.36B	5.59B
Total Debt	0.00	557.00M	1.77B	4.07B	6.68B
Total Liabilities	2.49B	3.10B	4.93B	7.61B	13.99B
Stockholders Equity	3.15B	2.54B	1.29B	3.29B	455.00M
Cash Flow
Free Cash Flow	102.00M	-485.00M	-90.00M	-687.00M	-7.43B
Operating Cash Flow	210.00M	-445.00M	-44.00M	-658.00M	-7.16B
Investing Cash Flow	-169.00M	-62.00M	-146.00M	-404.00M	8.07B
Financing Cash Flow	17.00M	740.00M	-2.27B	-171.00M	2.26B

Pepper Food Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 213.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 213 is above the 20-day moving average (MA) of 207.15, above the 50-day MA of 209.16, and above the 200-day MA of 194.66, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3372	76 Outperform	¥3.47B	9.17		―	4.95%	14.26%
2695	71 Outperform	¥158.63B	128.94		0.50%	4.82%	-79.12%
2751	70 Outperform	¥40.42B	19.79		0.26%	26.92%	4.19%
9936	67 Neutral	¥237.79B	25.93		1.27%	10.74%	14.69%
Sector *	61 Neutral	$16.99B	10.66	-7.51%	3.25%	1.53%	-15.49%
3053	54 Neutral	¥13.08B	352.53		―	-4.42%	―
2762	49 Neutral	¥3.48B	―		―	6.39%	16.24%