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Pepper Food Service Co., Ltd. (JP:3053)
:3053
Japanese Market
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Pepper Food Service Co., Ltd. (3053) AI Stock Analysis

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JP

Pepper Food Service Co., Ltd.

(3053)

Rating:54Neutral
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. (3053) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionPepper 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 MoneyPepper 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
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.99B14.59B14.78B18.95B31.09B
Gross Profit8.29B8.10B8.07B8.90B12.27B
EBITDA251.00M-394.00M-1.22B1.15B-1.64B
Net Income28.00M-710.00M-1.93B387.00M-3.95B
Balance Sheet
Total Assets5.64B5.64B6.22B10.90B14.45B
Cash, Cash Equivalents and Short-Term Investments2.18B2.12B1.89B4.36B5.59B
Total Debt0.00557.00M1.77B4.07B6.68B
Total Liabilities2.49B3.10B4.93B7.61B13.99B
Stockholders Equity3.15B2.54B1.29B3.29B455.00M
Cash Flow
Free Cash Flow102.00M-485.00M-90.00M-687.00M-7.43B
Operating Cash Flow210.00M-445.00M-44.00M-658.00M-7.16B
Investing Cash Flow-169.00M-62.00M-146.00M-404.00M8.07B
Financing Cash Flow17.00M740.00M-2.27B-171.00M2.26B

Pepper Food Service Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price203.00
Price Trends
50DMA
211.88
Negative
100DMA
203.98
Negative
200DMA
194.01
Positive
Market Momentum
MACD
-1.96
Negative
RSI
45.54
Neutral
STOCH
79.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3053, the sentiment is Negative. The current price of 203 is below the 20-day moving average (MA) of 206.35, below the 50-day MA of 211.88, and above the 200-day MA of 194.01, indicating a neutral trend. The MACD of -1.96 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 79.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3053.

Pepper Food Service Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥3.29B8.66
4.95%14.26%
74
Outperform
¥39.47B19.33
0.27%24.11%22.03%
67
Neutral
¥219.38B25.44
1.38%9.50%1.92%
67
Neutral
¥252.89B13.236.45%2.71%5.22%-11.89%
64
Neutral
¥139.79B113.62
0.57%4.82%-79.12%
54
Neutral
¥12.84B335.98
-4.11%
49
Neutral
¥3.35B
6.39%16.24%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3053
Pepper Food Service Co., Ltd.
203.00
50.00
32.68%
JP:2695
Kura Sushi, Inc.
3,585.00
-335.35
-8.55%
JP:2751
TENPOS HOLDINGS Co.Ltd.
3,320.00
-71.31
-2.10%
JP:2762
Sanko Marketing Foods Co., Ltd.
95.00
-54.00
-36.24%
JP:3372
Kanmonkai Co., Ltd.
239.00
-23.00
-8.78%
JP:9936
Ohsho Food Service Corp.
3,630.00
747.52
25.93%
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.Date of analysis: Apr 20, 2025