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

• Market Cap: ¥23.85B
• Dividend Yield: N/A
• Average Volume (3M): 565.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 20.33%
• EPS Growth: -548.63%
• Country: JP
• Employees: 73
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -67.19
• 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: 37 Underperform
• Price Target: ¥392.00 ▼(-14.04% Downside)

Kaihan Co., Ltd. faces significant financial and technical challenges. The company's negative profitability, high leverage, and poor cash flow management are major concerns. Technical indicators confirm a bearish outlook, and valuation metrics highlight financial distress. Immediate strategic improvements are necessary to stabilize the company's financial health.

Positive Factors

Revenue growth trend

Sustained revenue growth, including a 14.3% increase year-over-year, indicates expanding product adoption across telecom, automotive and industrial end markets. Durable top-line momentum supports scale, capacity utilization and long-term reinvestment potential.

High gross margin

A 71.4% gross margin reflects strong product-level pricing power or high-value components, which provides structural buffer to cover fixed costs and fund R&D. High margins support durability through industry cycles and permit investment in new product development.

Diversified recurring revenue and partnerships

Multiple revenue streams—recurring semiconductor sales, licensing and service contracts—plus strategic telecom and automotive partnerships create stickiness, reduce customer concentration risk, and provide predictable contract-driven demand over the medium term.

Negative Factors

Negative profitability and earnings volatility

Severely negative EPS growth and persistent net losses indicate ongoing operating deficits. This undermines retained earnings, limits ability to self-finance growth or weather downturns, and suggests profitability fixes are required for long-term stability.

High leverage

Material leverage increases interest burden and reduces financial flexibility. Even with a higher equity ratio, elevated debt-to-equity raises refinancing and covenant risk, constraining capital allocation and capacity to invest in product development or pursue M&A.

Weak cash generation

Negative operating and free cash flow show difficulty converting revenue into usable cash, impairing the firm's ability to fund capex, service debt, or build reserves. Persistent cash deficits risk reliance on external financing, weakening 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

Kaihan Co., Ltd. is experiencing revenue growth but is hindered by profitability and cash flow challenges. The high leverage and negative margins suggest financial instability, requiring strategic improvements to enhance operational efficiency and financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• 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 441.50, above the 50-day MA of 444.40, and below the 200-day MA of 648.08, indicating a bearish trend. The MACD of -12.88 indicates Positive momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 31.04 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
7522	66 Neutral	¥38.68B	10.05	―	1.04%	5.47%	61.89%
3561	66 Neutral	¥43.39B	21.69	18.06%	1.37%	4.01%	3.32%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3198	60 Neutral	¥50.51B	44.33	―	1.30%	2.90%	-26.37%
3196	59 Neutral	¥42.19B	48.03	―	0.62%	13.05%	-29.04%
8163	55 Neutral	¥51.48B	61.12	―	0.62%	17.12%	-58.47%
3133	37 Underperform	¥23.85B	-5.27	―	―	20.33%	-548.63%