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

• Market Cap: ¥2.99B
• Dividend Yield: N/A
• Average Volume (3M): 204.62K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.93
• Revenue Growth: 6.16%
• EPS Growth: 86.76%
• Country: JP
• Employees: 163
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 8.23
• Shares Outstanding: 6,740,000
• 10 Day Avg. Volume: 127,560
• 30 Day Avg. Volume: 204,616
• 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: 67 Neutral
• Price Target: ¥348.00 ▼(-2.79% Downside)

The overall stock score of 66.95 reflects a cautiously optimistic outlook driven by strong financial performance and attractive valuation. However, high leverage and lack of dividend yield are notable concerns. Technical indicators suggest stability with slight bearish signals.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory and expanding market presence, supporting long-term business sustainability.

Cash Flow Improvement

Enhanced cash generation capabilities provide a solid foundation for future investments and debt servicing, strengthening financial stability.

Profit Margin Efficiency

Efficient cost management and strong gross profit margins indicate effective operational strategies, enhancing long-term profitability.

Negative Factors

High Leverage

High leverage could pose risks during economic downturns, potentially impacting financial flexibility and increasing vulnerability to market changes.

Limited Net Profit Margin

Despite improvements, the limited net profit margin indicates challenges in translating revenue growth into substantial bottom-line profitability.

Low Equity Ratio

A low equity ratio may limit financial flexibility and increase dependency on debt, potentially constraining growth opportunities.

Horiifoodservice Co., Ltd. Business Overview & Revenue Model

Company Description

Horiifoodservice Co., Ltd. (3077) is a Japanese company specializing in the wholesale and distribution of food products. The company is involved in the supply of a wide range of food items, including fresh produce, processed foods, and beverages, catering primarily to the food service industry. With a strong commitment to quality and customer service, Horiifoodservice Co., Ltd. serves restaurants, catering services, and other food-related businesses across Japan.

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

Horiifoodservice Co., Ltd. shows promising recovery and growth, with improving revenue and profit margins. The strong cash flow position provides a solid foundation for future investments and debt servicing. However, high leverage poses potential risks in adverse conditions.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 358.00
• 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:3077, the sentiment is Neutral. The current price of 358 is below the 20-day moving average (MA) of 528.45, below the 50-day MA of 438.48, and below the 200-day MA of 378.99, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 3.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3077.

Horiifoodservice Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8181	75 Outperform	¥2.89B	6.84	―	1.33%	5.03%	129.14%
2789	70 Neutral	¥2.93B	8.78	―	1.02%	5.70%	-12.36%
3077	67 Neutral	¥2.99B	8.76	―	―	6.16%	86.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7585	48 Neutral	¥1.64B	―	―	―	7.82%	-14.63%
2762	46 Neutral	¥4.10B	-3.97	―	―	3.26%	4.62%
8209	38 Underperform	¥855.59M	―	―	―	7.45%	-46.31%