Monogatari Corporation (3097) AI Stock Analysis

• Market Cap: ¥151.32B
• Dividend Yield: 0.81%
• Average Volume (3M): 127.27K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.49
• Revenue Growth: 16.91%
• EPS Growth: 12.17%
• Country: JP
• Employees: 1,809
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 49.80
• Shares Outstanding: 39,202,980
• 10 Day Avg. Volume: 113,370
• 30 Day Avg. Volume: 127,270
• PEG Ratio: 7.68
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 92.26
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥4,611.00 ▲(3.97% Upside)

Monogatari Corporation's overall stock score is driven by strong financial performance and a stable balance sheet, though cash flow volatility and moderate valuation metrics present some risks. Technical indicators suggest a mixed outlook with potential short-term bearish momentum.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust demand for its products and services, supporting long-term business expansion and market presence.

Balance Sheet Health

An improved debt-to-equity ratio reflects a stronger equity position, reducing financial risk and enhancing the company's ability to invest in growth opportunities.

Profitability

High gross profit margins demonstrate effective cost management and pricing power, contributing to sustained profitability and competitive advantage.

Negative Factors

Cash Flow Volatility

Volatile cash flow growth can challenge the company's ability to fund operations and investments consistently, potentially impacting financial stability.

EBIT and EBITDA Margins

Decreasing EBIT and EBITDA margins suggest potential inefficiencies or increased costs, which could pressure profitability if not addressed.

Free Cash Flow Conversion

Low free cash flow conversion indicates challenges in turning earnings into cash, which may limit the company's ability to reinvest in growth or return capital to shareholders.

Monogatari Corporation Business Overview & Revenue Model

Company Description

The Monogatari Corporation operates restaurant chain and specialty stores in Japan and internationally. The company is also involved in the management of franchise chain business. As of August 01, 2018, it operated approximately 459 stores in Japan, including 253 directly operated stores and 206 franchise stores; and 16 stores internationally, including 13 directly operated stores and 3 franchise stores. The company was founded in 1949 and is headquartered in Toyohashi, Japan.

How the Company Makes Money

Monogatari Corporation generates revenue through several key streams. Firstly, the company earns significant income from the sale of animated series and films, both domestically and internationally. This includes licensing agreements with streaming platforms and television networks. Secondly, revenue is derived from video game sales, including both physical and digital formats, as well as in-game purchases. Additionally, the company profits from merchandise sales related to its popular franchises, including toys, apparel, and collectibles. Strategic partnerships with other media companies and distributors also enhance its revenue potential, as these collaborations can lead to broader distribution channels and co-production opportunities.

Monogatari Corporation Financial Statement Overview

Summary

Monogatari Corporation exhibits strong revenue growth and profitability, supported by a stable balance sheet with improved leverage ratios. However, cash flow generation shows volatility, indicating potential areas for cash management enhancement.

Income Statement

Monogatari Corporation has demonstrated strong revenue growth with a 4.01% increase in the latest year, maintaining a healthy gross profit margin of approximately 65%. The net profit margin is stable at around 5%, indicating efficient cost management. However, the EBIT and EBITDA margins have slightly decreased, suggesting potential areas for operational improvement.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.38, reflecting a stronger equity position and reduced leverage risk. Return on equity remains robust at 15.29%, showcasing effective use of shareholder funds. The equity ratio stands at a solid 54.41%, indicating a stable financial structure.

Cash Flow

Operating cash flow has increased, supporting a healthy operating cash flow to net income ratio of 1.92. However, free cash flow growth is volatile, with a significant increase in the latest year but previously negative growth. The free cash flow to net income ratio is relatively low, suggesting potential challenges in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	123.92B	123.92B	107.16B	92.27B	73.28B	64.02B
Gross Profit	80.64B	80.64B	70.14B	60.23B	47.82B	42.11B
EBITDA	12.68B	14.28B	12.58B	10.48B	8.64B	6.39B
Net Income	6.18B	6.16B	5.64B	4.69B	3.73B	2.73B
Balance Sheet
Total Assets	74.03B	74.03B	61.53B	50.01B	46.20B	47.75B
Cash, Cash Equivalents and Short-Term Investments	12.52B	12.52B	12.24B	7.35B	8.46B	14.21B
Total Debt	15.35B	15.35B	14.93B	10.32B	10.59B	17.04B
Total Liabilities	33.66B	33.66B	31.97B	25.06B	23.24B	27.79B
Stockholders Equity	40.28B	40.28B	29.41B	24.78B	22.96B	19.96B
Cash Flow
Free Cash Flow	0.00	1.60B	462.00M	2.33B	1.72B	213.98M
Operating Cash Flow	0.00	11.84B	10.63B	9.70B	8.78B	5.79B
Investing Cash Flow	0.00	-13.95B	-9.24B	-8.04B	-7.38B	-5.78B
Financing Cash Flow	0.00	2.71B	3.52B	-3.23B	-7.25B	4.23B

Monogatari Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4435.00
• 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:3097, the sentiment is Positive. The current price of 4435 is above the 20-day moving average (MA) of 4156.75, above the 50-day MA of 4147.60, and above the 200-day MA of 3817.41, indicating a bullish trend. The MACD of 93.39 indicates Negative momentum. The RSI at 66.46 is Neutral, neither overbought nor oversold. The STOCH value of 92.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3097.

Monogatari Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3087	70 Outperform	¥110.59B	16.37	―	2.11%	5.78%	10.26%
3543	69 Neutral	¥134.12B	22.01	―	1.87%	16.70%	-0.37%
3097	68 Neutral	¥151.32B	23.67	―	0.81%	16.91%	12.17%
2695	66 Neutral	¥128.49B	57.33	―	0.60%	5.43%	-62.27%
7630	66 Neutral	¥148.44B	49.45	―	1.70%	9.51%	6.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7412	41 Neutral	¥106.98B	151.76	―	―	-12.01%	―

Monogatari Corporation Corporate Events

Monogatari Corporation Reports Strong Financial Growth for Q3 2025

Monogatari Corporation reported a significant increase in its consolidated financial results for the three months ended September 30, 2025, with net sales rising by 19.6% and profit attributable to owners of the parent increasing by 45.8% compared to the previous year. The company also announced an increase in its annual dividend forecast, indicating a strong financial position and positive outlook for the fiscal year ending June 30, 2026.

The most recent analyst rating on (JP:3097) stock is a Hold with a Yen4231.00 price target. To see the full list of analyst forecasts on Monogatari Corporation stock, see the JP:3097 Stock Forecast page.

Monogatari Corporation Expands U.S. Presence with Strategic Asset Acquisition

Monogatari Corporation’s subsidiary, Shin Nihon Kousan Inc., has entered into an agreement to acquire store assets from Mikio Corporation in California. This acquisition aligns with Monogatari’s growth strategy to expand its presence in the U.S. restaurant market, leveraging synergies with the SHOGUN Group and capitalizing on the compact restaurant model of Mikio Corporation to accelerate expansion into smaller cities and suburban areas.

The most recent analyst rating on (JP:3097) stock is a Hold with a Yen4231.00 price target. To see the full list of analyst forecasts on Monogatari Corporation stock, see the JP:3097 Stock Forecast page.

Monogatari Corporation Announces Disposal of Treasury Shares as RSUs

Monogatari Corporation has announced the disposal of treasury shares as Restricted Stock Units (RSUs) for directors and executive officers. This move is part of their compensation system aimed at enhancing corporate and shareholder value sustainably. The disposal includes two types of RSUs: employment condition type and ESG condition-weighted type, with specific shares allocated to directors and executive officers. This initiative is designed to align the interests of the company’s leadership with long-term corporate goals and ESG targets, reflecting a strategic effort to bolster stakeholder value.

The most recent analyst rating on (JP:3097) stock is a Buy with a Yen4409.00 price target. To see the full list of analyst forecasts on Monogatari Corporation stock, see the JP:3097 Stock Forecast page.

Monogatari Corporation Introduces ESG-Linked Stock Compensation Plan

Monogatari Corporation has announced the introduction of a new restricted stock compensation plan for its directors, linked to the achievement of ESG-related numerical targets. This plan aims to incentivize directors to meet these targets and align their interests with shareholders. The plan will be presented for approval at the upcoming Annual General Meeting, with a maximum annual compensation of 15 million yen and up to 5,000 shares issued per year. The plan includes provisions for transfer restrictions on shares, which will be lifted based on the achievement of ESG targets, such as employee turnover rate and the ratio of female managers.

Monogatari Corporation Announces Director Elections

Monogatari Corporation has announced a proposal for the election of seven directors at its upcoming 56th Annual General Meeting of Shareholders. This includes the reappointment of six current directors and the introduction of one new candidate, Kuniko Usagawa, who is poised to become an independent director. The appointments are part of the company’s strategic leadership planning, potentially impacting its governance and market strategy.

Monogatari Corporation Expands Business Scope with New Amendments

Monogatari Corporation has announced a proposal to amend its Articles of Incorporation to include new business purposes, reflecting its strategic focus on expanding into marketing services, worker dispatch, employment placement, and language education. This amendment, set to be discussed at the upcoming Annual General Meeting, signifies the company’s intent to diversify its operations and enhance its market positioning by addressing emerging business opportunities and supporting foreign workers and students.

Monogatari Corporation Corrects July 2025 Yakiniku Customer Figures

Monogatari Corporation has issued a correction to its previously released report on the year-over-year change in sales and the number of customers for July 2025 in its Yakiniku category. The corrected figures indicate that the number of customers at existing Yakiniku restaurants was initially overstated and has been adjusted from 99.1% to 94.0%, while net sales and the number of restaurants remain unchanged. This correction highlights the importance of accurate data reporting for stakeholders and could impact the company’s perceived performance in the market.