JFLA Holdings, Inc. (3069) AI Stock Analysis

• Market Cap: ¥7.62B
• Dividend Yield: N/A
• Average Volume (3M): 114.13K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 0.56
• Revenue Growth: -2.85%
• EPS Growth: -25.67%
• Country: JP
• Employees: 1,545
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 2.99
• Shares Outstanding: 48,277,134
• 10 Day Avg. Volume: 166,270
• 30 Day Avg. Volume: 114,130
• PEG Ratio: -0.06
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -9.10
• 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: 46 Neutral
• Price Target: ¥158.00 ▲(3.95% Upside)

JFLA Holdings' overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The high P/E ratio indicates overvaluation, and the lack of dividend yield further detracts from its appeal. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Operating Cash Flow Recovery

Operating cash flow turning positive indicates better cash conversion of earnings and improved liquidity. Over the next several months this reduces short-term refinancing risk, supports working capital needs, and provides a base to fund operations or slowly reduce reliance on external financing.

Return to Profitability

A shift from net losses to positive net income suggests structural improvement in cost control or revenue quality. Sustained profitability enhances the firm's ability to reinvest, improve ROE and build reserves to withstand later cycles, strengthening long-term operational resilience.

Diversified Revenue Base

A diversified holding model spanning technology, manufacturing, partnerships and licensing reduces dependency on a single market. This structural mix smooths cash flows across cycles, creates cross-selling and licensing upside, and increases resilience to segment-specific downturns.

Negative Factors

Revenue Decline & Volatility

Falling and volatile revenue strains the economics that support scale and fixed-cost absorption. If top-line trends don't stabilize, margin recovery and reinvestment capacity will be constrained, limiting sustainable growth and making earnings less predictable over the medium term.

High Leverage

Significant leverage and declining equity reduce financial flexibility, increase interest expense sensitivity, and elevate refinancing risk. Over a multi-month horizon this constrains strategic options, raises payout and investment trade-offs, and heightens vulnerability to adverse shocks.

Negative Free Cash Flow

Persistent negative free cash flow implies the business requires external funding to support capex and operations. This undermines the ability to de-lever, return capital to shareholders, or invest organically, forcing reliance on debt or equity issuance and raising long-term financing risk.

JFLA Holdings, Inc. Business Overview & Revenue Model

Company Description

JFLA Holdings Inc. operates, manages, and franchises restaurants in Japan. The company also engages in the manufacture, processing, wholesale, and retail of soy sauce, Japanese seasoning, miso, pickles, sake, alcoholic beverages, soft drinks, and food products; import, wholesale, and retail of food materials, confectionery materials, and wine; and wholesale of various food products for business use. In addition, it offers milk and dairy products; and engages in the breeding of calves and cultivation of grass fodder. Further, the company is involved in importing, exporting, and retailing foods or drinks. The company was formerly known as Walnut Street Group Holding Limited and changed its name to JFLA Holdings Inc. in 2018. JFLA Holdings Inc. was founded in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JFLA Holdings generates revenue through multiple streams, primarily by leveraging its investments in technology and manufacturing sectors. The company earns money by selling proprietary products and services, which include advanced technology solutions and manufactured goods. Additionally, JFLA engages in strategic partnerships and joint ventures that provide income through shared revenues and collaborative projects. The company may also benefit from licensing agreements and royalties from its innovations, contributing to its overall financial performance.

JFLA Holdings, Inc. Financial Statement Overview

Summary

JFLA Holdings shows mixed financial performance with improved profitability and cash flow management. However, challenges in revenue growth and high leverage pose risks to financial stability.

Income Statement

JFLA Holdings has shown volatile revenue and profit trends over the years. The company moves from a net loss situation in previous years to a positive net income in 2025, indicating an improvement in profitability. However, revenue has decreased compared to 2024, and the gross profit margin has slightly weakened, reflecting challenges in maintaining growth. Additionally, the EBIT and EBITDA margins show some recovery but remain lower than ideal for industry standards.

Balance Sheet

The balance sheet indicates a high debt burden with a debt-to-equity ratio that suggests significant leverage. The company has seen a decline in equity over the years, and the equity ratio remains moderate, highlighting potential financial stability risks. Return on equity shows positive signs as of 2025, indicating improved profitability, but historical challenges in maintaining equity growth are notable.

Cash Flow

JFLA Holdings demonstrates a turnaround in cash flow management, with operating cash flow moving to a positive direction in 2025. However, free cash flow remains negative, reflecting ongoing capital expenditure challenges. The operating cash flow to net income ratio has improved, suggesting better alignment between earnings and cash generation, although free cash flow to net income is still weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.96B	65.21B	67.90B	76.71B	70.37B	69.62B
Gross Profit	16.94B	16.69B	18.57B	20.46B	19.74B	18.62B
EBITDA	2.97B	3.08B	1.85B	388.83M	1.04B	395.56M
Net Income	162.50M	638.15M	-618.41M	-2.20B	-1.88B	-2.56B
Balance Sheet
Total Assets	39.36B	39.47B	41.40B	41.39B	48.45B	52.26B
Cash, Cash Equivalents and Short-Term Investments	4.35B	4.57B	5.73B	2.09B	4.87B	6.07B
Total Debt	18.53B	19.27B	19.96B	20.76B	24.66B	26.14B
Total Liabilities	30.12B	30.38B	32.93B	35.24B	40.17B	42.22B
Stockholders Equity	7.36B	7.13B	6.59B	4.82B	6.99B	9.29B
Cash Flow
Free Cash Flow	0.00	-789.49M	1.24B	-1.87B	-1.01B	-1.60B
Operating Cash Flow	0.00	471.41M	1.66B	-728.13M	593.70M	-291.73M
Investing Cash Flow	0.00	-1.23B	-141.00M	-298.22M	-1.42B	2.68B
Financing Cash Flow	0.00	-452.78M	2.11B	-1.58B	-511.44M	-4.71B

JFLA Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 152.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3069, the sentiment is Positive. The current price of 152 is below the 20-day moving average (MA) of 158.45, above the 50-day MA of 151.50, and below the 200-day MA of 157.24, indicating a neutral trend. The MACD of 2.11 indicates Positive momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 11.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3069.

JFLA Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7561	65 Neutral	¥10.67B	11.58	―	4.19%	6.45%	-19.71%
3063	62 Neutral	¥10.04B	120.19	―	0.51%	17.38%	-86.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7682	53 Neutral	¥8.80B	96.05	―	0.38%	5.44%	-8.33%
3069	46 Neutral	¥7.62B	32.60	―	―	-2.85%	-25.67%
7674	46 Neutral	¥7.07B	-8.72	―	0.33%	6.62%	-2430.28%
7604	40 Underperform	¥7.48B	-17.87	―	1.21%	0.13%	-175.61%