Life Foods Co., Ltd. (3065) AI Stock Analysis

• Market Cap: ¥4.94B
• Dividend Yield: 0.31%
• Average Volume (3M): 1.15K
• Price to Earnings (P/E): 67.7
• Beta (1Y): 0.07
• Revenue Growth: -2.77%
• EPS Growth: 134.81%
• Country: JP
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 6.01
• Shares Outstanding: 3,660,400
• 10 Day Avg. Volume: 870
• 30 Day Avg. Volume: 1,153
• PEG Ratio: -0.08
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 19.93
• 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: 54 Neutral
• Price Target: ¥1,673.00 ▲(2.89% Upside)
• Action: Reiterated Date: 08/29/25
• Date: Action: Reiterated 08/29/25

The overall stock score is primarily influenced by the company's financial performance, which shows signs of recovery and stability. However, technical analysis indicates a bearish trend, which weighs down the score. The valuation is fair, but the modest dividend yield offers limited appeal to income-focused investors.

Positive Factors

Cash Flow Improvement

Improved cash flow generation indicates enhanced operational efficiency and financial health, providing more flexibility for strategic investments and debt management.

Profitability Recovery

The positive return on equity reflects a successful turnaround in profitability, suggesting effective management and potential for sustained earnings growth.

Gross Profit Margin

A strong gross profit margin highlights operational efficiency and the ability to maintain competitive pricing, supporting long-term profitability.

Negative Factors

Revenue Decline

The decline in revenue poses a challenge to growth, indicating potential market share loss or reduced demand, which could impact future profitability.

Volatile Earnings

Volatile earnings history suggests potential instability in financial performance, which may hinder long-term strategic planning and investor confidence.

Revenue Growth Decline

Negative revenue growth indicates declining sales momentum, which could affect the company's ability to invest in new opportunities and maintain competitive positioning.

Life Foods Co., Ltd. Business Overview & Revenue Model

Company Description

Life Foods Co., Ltd. operates a chain of Japanese-style restaurants in Japan. The company's restaurants are operated under Zameshiya, Machikadoya, Meshiya, and Sanuki noodles names. It operates restaurants in the Kansai and Chubu districts. The company was formerly known as El Foods Co., Ltd and changed its name to Life Foods Co., Ltd. in 1991. Life Foods Co., Ltd. was incorporated in 1981 and is headquartered in Suita, Japan. Life Foods Co., Ltd. operates as a subsidiary of Seven & i Holdings Co., Ltd.

How the Company Makes Money

Life Foods Co., Ltd. generates revenue primarily through the sale of its diverse range of food and beverage products. The company leverages multiple revenue streams, including direct sales to retailers, online sales through e-commerce platforms, and partnerships with health food distributors. Key revenue streams include premium organic snacks, functional beverages, and health supplements that align with current wellness trends. Additionally, Life Foods has established significant partnerships with health-conscious retailers and grocery chains, enhancing its market reach and brand visibility. The company's commitment to quality and sustainability also attracts a loyal customer base, contributing to consistent sales growth.

Life Foods Co., Ltd. Financial Statement Overview

Summary

Life Foods Co., Ltd. has shown a recovery in profitability and cash flow generation, despite past volatility in revenue and earnings. The company's balance sheet remains stable with manageable leverage. Continued focus on operational efficiency and profitability is crucial to sustain this positive momentum.

Income Statement

Life Foods Co., Ltd. has shown a volatile revenue trajectory with a 6.1% drop in the most recent fiscal year. The gross profit margin improved to 68.3%, indicating efficiency in core operations, but the company faced significant challenges in profitability, evidenced by a negative EBIT and EBITDA in previous years, though recovering to positive figures in 2025. The net profit margin improved to 4.1% in 2025 from prior losses, highlighting a turnaround in profitability.

Balance Sheet

The company maintains a relatively stable financial position with a debt-to-equity ratio of 0.33, indicating moderate leverage. The equity ratio stands at 41.3%, reflecting reasonable financial stability. Return on equity turned positive in 2025 at 23.9%, indicating improved profitability relative to equity. Despite fluctuations, the company has managed to maintain a solid equity base.

Cash Flow

Operating cash flow improved significantly in 2025, with a solid free cash flow generation resulting in a positive free cash flow to net income ratio. However, the cash flow from operations to net income ratio was challenging in previous years due to losses. The free cash flow growth rate was strong at 64.1%, reflecting improved cash generation capabilities.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	9.79B	9.78B	10.43B	9.89B	8.72B	9.23B
Gross Profit	6.60B	6.68B	6.80B	6.39B	5.68B	6.05B
EBITDA	292.05M	412.71M	64.11M	-478.29M	-1.17B	-1.04B
Net Income	308.80M	402.10M	-734.84M	-447.73M	60.69M	-1.69B
Balance Sheet
Total Assets	4.24B	4.08B	4.64B	6.09B	6.77B	6.94B
Cash, Cash Equivalents and Short-Term Investments	2.26B	2.23B	2.79B	3.51B	4.10B	4.02B
Total Debt	273.41M	664.65M	1.51B	2.28B	2.83B	2.69B
Total Liabilities	2.44B	2.40B	3.38B	4.11B	4.35B	4.57B
Stockholders Equity	1.80B	1.68B	1.26B	1.98B	2.43B	2.37B
Cash Flow
Free Cash Flow	0.00	250.96M	174.84M	-88.92M	-143.33M	-1.99B
Operating Cash Flow	0.00	314.57M	245.23M	88.24M	41.84M	-1.86B
Investing Cash Flow	0.00	-106.27M	177.45M	-203.99M	-109.84M	1.23B
Financing Cash Flow	0.00	-820.99M	-838.92M	-471.55M	145.35M	2.20B

Life Foods Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1626.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3065, the sentiment is Negative. The current price of 1626 is above the 20-day moving average (MA) of 1619.89, below the 50-day MA of 1630.25, and below the 200-day MA of 1637.81, indicating a bearish trend. The MACD of -5.78 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3065.

Life Foods Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3358	63 Neutral	¥4.26B	12.53	―	―	3.85%	-59.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3075	60 Neutral	¥21.88B	-115.94	―	0.77%	―	―
3065	54 Neutral	¥4.94B	67.75	―	0.31%	-2.77%	134.81%
3067	51 Neutral	¥4.17B	6.85	―	―	-2.70%	98.30%
2762	46 Neutral	¥3.90B	-7.98	―	―	3.26%	4.62%
3069	46 Neutral	¥8.06B	2.65	―	―	-2.85%	-25.67%