Choushimaru Co., Ltd. (3075) AI Stock Analysis

• Market Cap: ¥22.14B
• Dividend Yield: 0.77%
• Average Volume (3M): 9.38K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.38
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 491
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -3.31
• Shares Outstanding: 14,518,000
• 10 Day Avg. Volume: 10,200
• 30 Day Avg. Volume: 9,380
• PEG Ratio: -0.87
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -287.75
• 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): 75.2
• Revenue Forecast (FY): ¥25.30B

• Rating: 60 Neutral
• Price Target: ¥1,762.00 ▲(11.66% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by mixed financial performance: strong balance-sheet conservatism offsets recent revenue decline, margin compression, and negative free cash flow. Technicals are supportive but appear overextended, while valuation (high P/E and low yield) is a key constraint.

Positive Factors

Conservative balance sheet

Very low leverage (debt-to-equity ~0.06) provides durable financial flexibility to withstand revenue volatility, fund selective investments, and avoid refinancing risk. This structural strength supports resilience and strategic optionality over the next 2–6 months.

High and stable gross margin

A steady ~61% gross margin indicates robust unit economics and cost control at the COGS level, which cushions operating results when sales decline. This structural margin advantage makes recovery of operating profit more feasible as volumes normalize.

Consistent positive ROE

Sustained positive ROE (~8.7% in 2025) shows the company historically converts equity into profits, reflecting competent capital allocation and operational effectiveness. That track record supports confidence in medium-term return generation despite recent softness.

Negative Factors

Recent revenue decline

A ~9% revenue decline in 2025 signals weakening top-line momentum. Persistent top-line pressure would erode scale benefits, increase per-unit fixed cost absorption, and make margin restoration and cash generation harder over the next several quarters.

Margin compression and thin operating profits

Net margin compression to ~3.3% and an EBIT margin near 5% leave limited operating buffer. Thin profitability reduces ability to reinvest, absorb cost shocks, or rebuild cash cushions, increasing vulnerability to sector cost inflation or lower volumes.

Volatile and weak cash generation

Free cash flow swung to negative in 2025 and operating cash was modest, indicating inconsistent cash conversion driven by working-capital swings or investments. This volatility limits internal funding for growth, dividends, or capex and increases reliance on balance-sheet flexibility.

Choushimaru Co., Ltd. Business Overview & Revenue Model

Company Description

Choushimaru Co.,Ltd. operates gourmet carousel sushi restaurants in Japan and internationally. The company was formerly known as All Co., Ltd. and changed its name to Choushimaru Co.,Ltd. in April 2005. Choushimaru Co.,Ltd. was incorporated in 1977 and is headquartered in Chiba, Japan.

How the Company Makes Money

Choushimaru Co., Ltd. generates revenue primarily through the sale of its processed seafood products. The company's revenue model is built around direct sales to retailers, wholesalers, and food service providers, ensuring a broad distribution of its products. Key revenue streams include the sale of frozen fish, packaged seafood items, and value-added products such as ready-to-eat meals. Additionally, Choushimaru may benefit from strategic partnerships with local fisheries and global suppliers, which enhance its supply chain and product offerings. The company also focuses on branding and marketing efforts to build consumer loyalty and expand its market presence, further contributing to its earnings.

Choushimaru Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: a strong, low-leverage balance sheet supports resilience, but the latest year showed weaker performance with revenue down ~9%, thinner net margin (~3.3%), and negative free cash flow after a strong prior year—signaling near-term pressure despite solid gross margin (~61%).

Income Statement

Profitability is positive but has weakened in the most recent year: revenue fell about 9% in 2025 while net margin declined to ~3.3% from ~5.0% in 2024. Gross margin has remained strong and stable around ~61%, but operating profitability is thin for the sector (EBIT margin ~5% in 2025) and earnings have been volatile historically (including a loss in 2020). Overall: solid gross economics, but inconsistent growth and recent margin pressure.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity is ~0.06 in 2025 (and even lower in 2022–2024), indicating ample balance-sheet flexibility. Equity remains sizable relative to assets, and returns on equity have been consistently positive since 2021 (about ~8.7% in 2025, down from ~11.5% in 2024). Key watch-out is the decline in equity and assets in 2025 versus 2024, but overall leverage risk appears limited.

Cash Flow

Cash generation is the weakest area due to volatility and a recent turn to negative free cash flow. In 2025, operating cash flow was modest (~¥0.6B) and free cash flow was negative (~-¥0.07B), following a strong 2024 when free cash flow was positive (~¥0.86B). The cash conversion of earnings has been inconsistent across years, suggesting working-capital swings and/or investment spending can meaningfully impact cash available to shareholders.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	22.94B	20.87B	21.36B	19.31B	17.03B	17.79B
Gross Profit	14.11B	12.81B	13.08B	11.13B	9.97B	10.58B
EBITDA	1.90B	1.56B	2.01B	1.15B	1.93B	895.29M
Net Income	860.84M	683.89M	1.07B	558.17M	1.06B	378.96M
Balance Sheet
Total Assets	10.80B	10.79B	12.84B	11.40B	10.98B	12.70B
Cash, Cash Equivalents and Short-Term Investments	4.41B	4.41B	6.59B	6.18B	6.79B	9.01B
Total Debt	494.59M	494.59M	198.00M	192.00M	124.73M	3.01B
Total Liabilities	2.93B	2.93B	3.53B	3.04B	3.09B	5.79B
Stockholders Equity	7.87B	7.86B	9.31B	8.37B	7.88B	6.91B
Cash Flow
Free Cash Flow	-193.30M	-71.33M	860.81M	-553.22M	778.39M	919.80M
Operating Cash Flow	195.81M	616.33M	2.38B	430.87M	1.39B	1.05B
Investing Cash Flow	-399.04M	-1.03B	-1.84B	-1.02B	-641.19M	-126.97M
Financing Cash Flow	-1.82B	-1.76B	-130.56M	-14.49M	-2.97B	2.84B

Choushimaru Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1578.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3075, the sentiment is Neutral. The current price of 1578 is below the 20-day moving average (MA) of 1640.90, below the 50-day MA of 1611.60, and above the 200-day MA of 1547.11, indicating a neutral trend. The MACD of 7.60 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 27.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3075.

Choushimaru Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7554	65 Neutral	¥23.18B	23.73	―	―	―	―
9979	63 Neutral	¥25.01B	23.08	―	1.20%	3.89%	-12.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3075	60 Neutral	¥22.14B	31.45	―	0.77%	―	―
3547	60 Neutral	¥22.57B	25.73	―	0.75%	25.41%	77.18%
2882	57 Neutral	¥22.59B	145.84	―	0.78%	8.86%	-17.71%
9850	52 Neutral	¥22.97B	72.52	―	0.62%	7.64%	-65.84%