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

• Market Cap: ¥18.95B
• Dividend Yield: N/A
• Average Volume (3M): 565.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• 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: 41 Neutral
• Price Target: ¥394.00 ▼(-13.60% Downside)
• Action: Upgraded Date: 02/26/26
• Date: Action: Upgraded 02/26/26

The score is held down primarily by weak financial quality—ongoing losses, negative operating/free cash flow, and high leverage—despite solid revenue growth and strong gross margin. Technically, the stock remains in a broader downtrend (below 50/100/200-day averages with negative MACD), and valuation is constrained by a negative P/E tied to unprofitable operations.

Positive Factors

Revenue Growth

Sustained revenue growth of ~14% year-over-year indicates expanding customer demand or store sales momentum, providing a structural base to absorb fixed costs. If maintained, this top-line trend improves the odds of achieving operating leverage and eventual profitability.

High Gross Margin

A 71% gross margin signals a structurally favorable cost-of-goods profile or pricing power in the restaurant offering. High gross margins create a durable buffer to cover operating expenses and give management latitude to invest in growth or promotions while protecting gross profit dollars.

Improved Equity Ratio

An improving equity ratio and rising equity base reduce immediate solvency pressure and signal capital support for expansion. Better equity financing mix enhances long-term financial flexibility, lowering refinancing risk and making future investment or restructuring options more viable.

Negative Factors

Negative Cash Flow

Persistent negative operating and free cash flow erodes liquidity and forces reliance on external funding or asset sales. Over months this undermines the company's ability to self-fund growth, increases financing costs, and raises execution risk for strategic initiatives.

Ongoing Losses

Chronic negative EBIT and net margins mean the business is not yet converting revenue into earnings. This structural unprofitability limits retained earnings accumulation, weakens return metrics, and makes it harder to justify investment without a clear path to sustained operating income.

High Leverage

Material leverage raises fixed obligations and sensitivity to interest or sales volatility. High debt limits strategic flexibility, increases refinancing risk, and can force prioritization of creditor claims over growth investments during downturns, constraining long-term resilience.

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

Kaihan Co., Ltd. generates revenue through multiple streams, including the sale of electronic components and systems to original equipment manufacturers (OEMs) and end-users in various sectors. The company's revenue model is primarily based on direct sales, where it offers its products to customers, as well as through contracts for custom solutions tailored to specific industry needs. Key revenue streams include recurring sales of semiconductor products, licensing agreements for proprietary technologies, and service contracts for installation and maintenance of complex systems. Strategic partnerships with major players in the telecommunications and automotive sectors further enhance its market reach and contribute to stable earnings.

Kaihan Co., Ltd. Financial Statement Overview

Summary

Revenue is growing (14.3% from 2024 to 2025) and gross margin is strong (71.4% in 2025), but profitability remains weak with negative EBIT and net income margins. Cash generation is a key risk with negative operating cash flow and free cash flow in 2025, and the balance sheet shows high leverage despite an improved equity ratio (32.4%).

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	2.26B	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: Negative
• RSI: Neutral
• STOCH: Neutral

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 396.50, above the 50-day MA of 428.24, and below the 200-day MA of 613.30, indicating a neutral trend. The MACD of -18.01 indicates Negative momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 52.40 is Neutral, 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	¥23.12B	23.83	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3547	60 Neutral	¥22.30B	25.43	―	0.75%	25.41%	77.18%
2882	57 Neutral	¥23.65B	152.66	―	0.78%	8.86%	-17.71%
3068	54 Neutral	¥20.51B	-40.74	―	0.54%	1.09%	-128.63%
9850	52 Neutral	¥22.92B	72.38	―	0.62%	7.64%	-65.84%
3133	41 Neutral	¥18.95B	-4.94	―	―	20.33%	-548.63%