Kaihan Co., Ltd. (3133) AI Stock Analysis

• Market Cap: ¥20.32B
• Dividend Yield: N/A
• Average Volume (3M): 565.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 20.33%
• EPS Growth: -548.63%
• Country: JP
• Employees: 73
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -5.82
• Shares Outstanding: 56,915,783
• 10 Day Avg. Volume: 472,210
• 30 Day Avg. Volume: 565,743
• PEG Ratio: 7.22
• Price to Book (P/B): 29.17
• Price to Sales (P/S): 15.49
• P/FCF Ratio: -70.30
• 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: 45 Neutral
• Price Target: ¥348.00 ▼(-23.68% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held down primarily by weak financial performance (ongoing losses, negative operating/free cash flow, and high leverage) despite solid revenue growth. Technicals are mixed with only short-term improvement and negative MACD, and valuation is constrained by a loss-making (negative P/E) profile.

Positive Factors

Revenue Growth

Sustained top-line growth of ~14% demonstrates enduring customer demand and effective sales/marketing execution. Over 2-6 months this supports scale benefits, improves bargaining power with suppliers, and creates runway to invest in operations or new store openings once profitability is addressed.

High Gross Margin

A 71.4% gross margin indicates very strong unit economics at the cost-of-goods level, leaving room to cover fixed costs and invest in growth. If management improves operating expense control, these gross margins could translate into durable operating profitability over the medium term.

Improving Equity Ratio

An improving equity ratio and rising total assets signal stronger capitalization and reduced reliance on immediate external financing. This structural improvement enhances long-term financial flexibility for expansion or refinancing and lowers insolvency risk relative to prior periods.

Negative Factors

Negative Operating Cash Flow

Persistent negative operating and free cash flow shows the core business is not converting revenue into cash, forcing dependence on external financing or debt. Over several months this constrains investment, working capital management and puts pressure on liquidity and operational continuity.

Ongoing Net Losses

Continued negative EBIT and net margins mean the company is not yet profitable despite revenue gains. Prolonged losses erode shareholder equity, limit reinvestment capacity, and make it harder to fund expansion or absorb shocks without corrective actions to restore sustainable profitability.

High Leverage

Significant debt relative to equity raises fixed interest and principal obligations, increasing vulnerability to cash-flow shortfalls. With weak cash generation and losses, elevated leverage heightens refinancing and solvency risk and constrains strategic options in the medium term.

Kaihan Co., Ltd. Business Overview & Revenue Model

Company Description

kaihan co.,Ltd. plans, develops, and operates restaurants in Japan. The company was formerly known as Kaihan, Ltd. and changed its name to kaihan co.,Ltd. in October 2006. kaihan co.,Ltd. was incorporated in 2003 and is based in Nagoya, Japan.

How the Company Makes Money

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Kaihan Co., Ltd. Financial Statement Overview

Summary

Revenue is growing (14.3% from 2024 to 2025), but profitability remains weak with negative EBIT and net income margins, and cash generation is pressured by negative operating cash flow and free cash flow. Balance sheet leverage is elevated (high debt-to-equity), which adds risk despite some improvement in the equity ratio.

Income Statement

Kaihan Co., Ltd. has shown a consistent increase in revenue over the years, with a notable growth rate of 14.3% from 2024 to 2025. However, the company is struggling with profitability, as indicated by negative EBIT and net income margins. The gross profit margin remains relatively strong at 71.4% for 2025, but the persistent negative net profit margin highlights ongoing operational challenges.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. The equity ratio improved to 32.4% in 2025, suggesting better equity financing, but the return on equity remains negative due to ongoing net losses. The increase in total assets and stockholders' equity is a positive sign, yet the high leverage poses a risk.

Cash Flow

Kaihan Co., Ltd. faces challenges in cash flow management, with negative free cash flow and operating cash flow in 2025. The operating cash flow to net income ratio indicates inefficiencies in converting revenue into cash. Despite a reduction in free cash flow deficit, the company needs to improve its cash generation capabilities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.96B	2.79B	2.44B	2.09B	776.66M	861.15M
Gross Profit	2.15B	1.99B	1.65B	1.38B	501.33M	603.53M
EBITDA	-475.05M	-336.21M	-517.08M	-908.61M	-358.05M	-916.42M
Net Income	-872.06M	-737.84M	-712.57M	-1.14B	-453.75M	-1.07B
Balance Sheet
Total Assets	7.58B	4.58B	3.62B	2.66B	2.12B	724.33M
Cash, Cash Equivalents and Short-Term Investments	494.21M	436.60M	804.67M	315.11M	1.51B	44.80M
Total Debt	2.17B	2.29B	1.98B	1.59B	1.18B	852.60M
Total Liabilities	3.09B	3.09B	2.73B	2.37B	1.67B	1.37B
Stockholders Equity	4.46B	1.48B	890.65M	290.65M	449.78M	-646.46M
Cash Flow
Free Cash Flow	0.00	-615.08M	-1.48B	-1.25B	-183.16M	-1.06B
Operating Cash Flow	0.00	-293.75M	-632.11M	-578.80M	-179.12M	-1.03B
Investing Cash Flow	0.00	-395.49M	-759.19M	-1.29B	41.28M	80.54M
Financing Cash Flow	0.00	321.17M	1.71B	625.30M	1.60B	628.83M

Kaihan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 456.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3133, the sentiment is Negative. The current price of 456 is above the 20-day moving average (MA) of 393.30, above the 50-day MA of 410.60, and below the 200-day MA of 580.04, indicating a bearish trend. The MACD of -12.27 indicates Positive momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 11.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3133.

Kaihan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7554	65 Neutral	¥22.43B	20.09	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3547	60 Neutral	¥20.22B	-47.44	―	0.75%	25.41%	77.18%
2882	57 Neutral	¥22.26B	35.55	―	0.78%	8.86%	-17.71%
3068	54 Neutral	¥19.88B	14.00	―	0.54%	1.09%	-128.63%
9850	52 Neutral	¥22.53B	12.45	―	0.62%	7.64%	-65.84%
3133	45 Neutral	¥20.32B	-18.27	―	―	20.33%	-548.63%