Horiifoodservice Co., Ltd. (3077) AI Stock Analysis

• Market Cap: ¥3.87B
• Dividend Yield: N/A
• Average Volume (3M): 122.85K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.79
• Revenue Growth: 6.16%
• EPS Growth: 86.76%
• Country: JP
• Employees: 163
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 6,930,000
• 10 Day Avg. Volume: 48,560
• 30 Day Avg. Volume: 122,850
• PEG Ratio: 0.11
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 14.81
• 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: 72 Outperform
• Price Target: ¥620.00 ▲(73.18% Upside)
• Action: Upgraded Date: 01/04/26
• Date: Action: Upgraded 01/04/26

The score is driven primarily by improving financial performance and especially strong cash flow recovery, tempered by high balance-sheet leverage. Technicals are supportive with the stock above major moving averages and positive momentum, while valuation is moderately favorable on a sub-10 P/E but lacks dividend support due to missing yield data.

Positive Factors

High gross margin

A 73.38% gross margin indicates structurally low direct costs or strong pricing power in the restaurant model. Durable high gross margins provide a persistent buffer versus input inflation, support reinvestment in operations, and underpin sustainable margin recovery over months.

Strong cash generation

A dramatic FCF improvement (+2180%) and OCF/NI of 1.10 show materially improved cash conversion. Durable cash generation reduces dependence on external financing, enables debt paydown or targeted capex, and materially strengthens operational flexibility over the medium term.

High return on equity

ROE near 37% signals efficient use of equity to generate returns, reflecting operational leverage on the company’s capital base. If sustained, high ROE supports internal funding for growth and indicates an underlying competitive advantage in deploying limited equity capital.

Negative Factors

High leverage

A debt-to-equity ratio of 3.45 reflects a highly leveraged balance sheet, increasing sensitivity to rising rates and economic slowdowns. High leverage constrains strategic flexibility, raises refinancing risk, and can force deleveraging that pressures growth and capital allocation over the coming months.

Thin profitability margins

Net margin below 4% and single-digit operating margins leave little cushion for cost shocks or higher interest expense. Persistent low margins limit internal reinvestment capacity and make earnings sensitive to input or demand fluctuations, challenging sustained earnings expansion.

Small scale and limited liquidity

A small employee base and modest average trading volume suggest limited scale and market depth. Restricted scale can limit economies of scale, supplier negotiating power, geographic reach, and access to capital markets, reducing strategic optionality over the medium term.

Horiifoodservice Co., Ltd. Business Overview & Revenue Model

Company Description

Horiifoodservice Co., Ltd. operates a restaurant business. It operates restaurants under the HITACHINOKUNI, KAKURE, GOCHISOHONPO, AKA-KARA, GYUTAN, Meat sushi, Boiled offal in a large pot Goemon, Yakiniku and Sundudu Chego!!, Ramen Fujita, Buon giorno Shokudo, Hakata motsu nabe Marumo, Ibaraki Marugoto Shioya brand names. The company was founded in 1981 and is headquartered in Mito, Japan. Horiifoodservice Co., Ltd. is a subsidiary of TBI Holdings Co., Ltd.

How the Company Makes Money

Horiifoodservice Co., Ltd. generates revenue primarily through the sale of food products to the food service industry. This includes bulk sales to restaurants, catering companies, and institutional food providers. The company's revenue streams are diversified through its extensive product offerings, which include fresh produce, processed foods, and beverages. Additionally, Horiifoodservice may engage in strategic partnerships with food producers and suppliers to enhance its product range and competitive pricing. The company focuses on maintaining strong relationships with its clients to ensure repeat business and customer loyalty, which are crucial for its financial performance.

Horiifoodservice Co., Ltd. Financial Statement Overview

Summary

Income statement reflects improving operations (revenue +2.45%, very strong gross margin at 73.38%) but profitability remains thin (net margin 3.67%, EBIT/EBITDA ~4%). Balance sheet leverage is a key risk (debt-to-equity 3.45, equity ratio 15.71%) despite strong ROE (36.94%). Cash flow is a major positive with sharply higher free cash flow (+2180.07%) and solid cash conversion (OCF/NI 1.10).

Income Statement

Horiifoodservice Co., Ltd. has demonstrated strong revenue growth with a 2.45% increase from the previous year, indicating a positive trajectory. The gross profit margin stands at a robust 73.38%, showcasing efficient cost management. However, the net profit margin of 3.67% suggests limited profitability, despite improvements from previous losses. The EBIT and EBITDA margins, at 4.19% and 4.44% respectively, indicate a recovering operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 3.45, indicative of a high leverage position, which could pose risks in economic downturns. The return on equity (ROE) of 36.94% reflects effective use of equity to generate profits. The equity ratio of 15.71% suggests a lower reliance on equity financing, which might limit financial flexibility.

Cash Flow

Horiifoodservice's cash flow statement reveals substantial improvement in free cash flow, with a significant growth rate of 2180.07%, highlighting enhanced cash generation capabilities. The operating cash flow to net income ratio of 1.10 indicates good cash conversion from earnings. The free cash flow to net income ratio of 0.71 suggests a healthy relationship between profitability and cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.87B	4.77B	4.66B	4.05B	2.16B	2.77B
Gross Profit	3.62B	3.50B	3.30B	2.86B	1.54B	2.02B
EBITDA	279.75M	211.60M	107.50M	-197.72M	-311.77M	-966.23M
Net Income	221.71M	175.31M	89.73M	-278.69M	-391.02M	-1.05B
Balance Sheet
Total Assets	2.92B	3.02B	2.58B	2.54B	2.66B	2.46B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.81B	1.49B	1.47B	1.35B	1.17B
Total Debt	1.53B	1.63B	1.50B	1.50B	1.50B	504.04M
Total Liabilities	2.37B	2.50B	2.35B	2.43B	2.27B	1.68B
Stockholders Equity	508.00M	474.51M	229.72M	112.04M	388.92M	777.32M
Cash Flow
Free Cash Flow	0.00	124.40M	5.46M	115.84M	-880.19M	-808.43M
Operating Cash Flow	0.00	193.09M	56.23M	156.25M	-741.04M	-747.24M
Investing Cash Flow	0.00	-33.96M	-20.00M	-4.21M	-105.75M	107.59M
Financing Cash Flow	0.00	47.05M	0.00	-1.35M	997.31M	474.74M

Horiifoodservice Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 358.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3077, the sentiment is Positive. The current price of 358 is below the 20-day moving average (MA) of 503.40, below the 50-day MA of 503.52, and below the 200-day MA of 429.01, indicating a bullish trend. The MACD of 11.15 indicates Negative momentum. The RSI at 69.99 is Neutral, neither overbought nor oversold. The STOCH value of 84.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3077.

Horiifoodservice Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3077	72 Outperform	¥3.87B	11.04	―	―	6.16%	86.76%
138A	67 Neutral	¥2.88B	28.10	―	1.59%	11.33%	-21.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3358	57 Neutral	¥3.55B	50.80	―	―	3.85%	-59.79%
9969	52 Neutral	¥4.03B	69.47	―	1.99%	-0.91%	―
3067	51 Neutral	¥4.18B	65.84	―	―	-2.70%	98.30%
2762	46 Neutral	¥3.94B	-4.43	―	―	3.26%	4.62%