Eternal Hospitality Group Co.,Ltd. (3193) AI Stock Analysis

• Market Cap: ¥35.75B
• Dividend Yield: 1.49%
• Average Volume (3M): 92.78K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.96
• Revenue Growth: 11.52%
• EPS Growth: -19.79%
• Country: JP
• Employees: 920
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Restaurants
• EPS (TTM): 31.37
• Shares Outstanding: 11,622,300
• 10 Day Avg. Volume: 65,010
• 30 Day Avg. Volume: 92,783
• PEG Ratio: -1.50
• Price to Book (P/B): 3.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,629.00
• Price Target Upside: 17.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥3,629.00 ▲(17.63%Upside)

Eternal Hospitality Group's stock is buoyed by strong technical momentum and solid financial performance, despite overvaluation concerns. The company's stable balance sheet and improving profit margins are positive, though cash flow consistency warrants attention. The lack of earnings call or corporate events data limits further insight.

Eternal Hospitality Group Co.,Ltd. Business Overview & Revenue Model

Company Description

Eternal Hospitality Group Co., Ltd. (3193) is a company operating within the hospitality industry, primarily focused on providing hotel and resort management services. The company specializes in delivering exceptional guest experiences, with a portfolio that includes luxury hotels, resorts, and vacation properties. Its core services encompass accommodation, dining, event hosting, and wellness offerings, catering to both leisure and business travelers.

How the Company Makes Money

Eternal Hospitality Group Co., Ltd. generates revenue through multiple streams within the hospitality sector. The primary source of income is room bookings, where the company charges guests for overnight stays in their managed properties. Additionally, the company earns from food and beverage sales offered at on-site restaurants and bars. Event hosting and conference services contribute to revenue by providing venues and related services for corporate meetings, weddings, and other gatherings. Ancillary services such as spa treatments, recreational activities, and loyalty programs also add to the company's earnings. Strategic partnerships with travel agencies, online booking platforms, and marketing alliances further enhance its revenue potential by increasing customer reach and occupancy rates.

Eternal Hospitality Group Co.,Ltd. Financial Statement Overview

Summary

Eternal Hospitality Group demonstrates solid growth and profitability, with strong revenue and profit margins. While the balance sheet is stable with reduced leverage, cash flow consistency remains a concern. Continued focus on cash management and maintaining financial discipline will be crucial for sustaining long-term growth and stability.

Income Statement

The company exhibits strong revenue growth with a noticeable increase from 2023 to 2024 and a robust TTM performance. Gross and net profit margins have improved over the years, indicating better cost management and operational efficiency. The EBIT and EBITDA margins are healthy, reflecting effective expense control. However, the historical volatility in profits, particularly in 2021 with negative net income, suggests some vulnerability to market conditions.

Balance Sheet

The balance sheet shows a strong equity base with an improving equity ratio. Debt levels have decreased over time, leading to a favorable debt-to-equity ratio, reducing financial risk. The return on equity has improved, driven by rising net income. However, the company should maintain vigilance over liabilities to ensure continued financial stability.

Cash Flow

The cash flow statement reveals challenges with free cash flow consistency, especially in the latest TTM data where free cash flow is zero. Historical free cash flow growth has been positive but erratic, and the operating cash flow to net income ratio suggests a need for improved cash generation relative to reported earnings. The company should focus on enhancing cash flow reliability.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	44.05B	41.91B	33.45B	20.29B	15.59B	27.54B
Gross Profit	30.54B	29.09B	23.44B	14.31B	10.78B	19.60B
EBITDA	2.81B	4.09B	1.87B	2.85B	495.78M	387.74M
Net Income	1.82B	2.13B	616.27M	1.13B	-466.42M	-763.33M
Balance Sheet
Total Assets	19.40B	20.65B	19.32B	18.47B	16.83B	19.95B
Cash, Cash Equivalents and Short-Term Investments	6.93B	8.36B	8.63B	8.66B	4.71B	8.68B
Total Debt	3.15B	3.41B	5.76B	6.25B	7.79B	8.91B
Total Liabilities	10.64B	11.96B	12.43B	12.13B	11.61B	14.29B
Stockholders Equity	8.76B	8.69B	6.89B	6.34B	5.22B	5.67B
Cash Flow
Free Cash Flow	0.00	2.89B	845.78M	5.58B	-2.75B	-428.24M
Operating Cash Flow	0.00	4.44B	1.72B	5.91B	-2.69B	-191.14M
Investing Cash Flow	0.00	-1.99B	-1.20B	-473.35M	-111.17M	-247.91M
Financing Cash Flow	0.00	-2.72B	-588.00M	-1.54B	-1.13B	4.99B

Eternal Hospitality Group Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3085.00
• 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:3193, the sentiment is Neutral. The current price of 3085 is below the 20-day moving average (MA) of 3145.50, above the 50-day MA of 3014.74, and above the 200-day MA of 3042.38, indicating a neutral trend. The MACD of 31.05 indicates Positive momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 5.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3193.

Eternal Hospitality Group Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3193	74 Outperform	¥35.75B	23.13		1.49%	11.52%	-19.79%
2753	73 Outperform	¥30.41B	19.04		2.30%	3.40%	1.61%
7522	67 Neutral	¥41.28B	13.40		0.98%	7.79%	-5.17%
2705	67 Neutral	¥38.33B	32.73		0.09%	12.52%	-5.69%
Sector *	65 Neutral	€20.84B	9.50	7.83%	3.42%	0.45%	-40.36%
2882	58 Neutral	¥23.15B	25.99		0.29%	3.93%	―
3196	58 Neutral	¥42.81B	33.58		0.66%	16.40%	-14.88%

Eternal Hospitality Group Co.,Ltd. Corporate Events

Eternal Hospitality Group Reports June 2025 Store Count and Sales Trends

In June 2025, Eternal Hospitality Group reported a slight decrease in its total store count to 1,156, with a correction made to the previous month’s figures. The company continues to expand its international footprint, particularly in South Korea and Taiwan. Domestically, Torikizoku’s sales showed a year-on-year increase, indicating a positive trend in customer engagement and average spending, despite a minor drop in the number of directly managed stores. This growth reflects the company’s strategic focus on strengthening its franchise partnerships and enhancing its market presence.

Eternal Hospitality Group Reports Growth in Store Count and Sales

Eternal Hospitality Group Co., Ltd. reported a steady increase in its store count for May 2025, with a total of 1,160 stores globally, reflecting growth in both domestic and international markets. The company’s domestic Torikizoku chain showed positive year-on-year sales trends, indicating a strong market position and potential for continued expansion.

Eternal Hospitality Group Reports Mixed Financial Results for Nine Months Ending April 2025

Eternal Hospitality Group Co., Ltd. reported its consolidated financial results for the nine months ending April 30, 2025, showing a 9.4% increase in net sales compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 25.0%, 26.8%, and 34.9% respectively. Despite these declines, the company maintained a stable equity-to-asset ratio, improving from 42.1% to 44.9%. The forecast for the fiscal year ending July 31, 2025, anticipates a further increase in net sales by 8.2%, although profits are expected to decrease.

Eternal Hospitality Group Forms Joint Venture for Global Yakitori Expansion

Eternal Hospitality Group Co., Ltd. has announced a joint venture with AO Co., Ltd. to establish a new company, ei Inc., focusing on the production and operation of restaurants, particularly high-end yakitori brands. This strategic move aims to leverage AO’s expertise and Michelin-starred reputation to enhance brand development and expand the company’s international presence, although it is expected to have a negligible impact on the company’s overall business performance.

Eternal Hospitality Group Announces Major Restructuring for Global Expansion

Eternal Hospitality Group Co., Ltd. has announced a significant organizational restructuring to enhance its global expansion strategy. The company plans to establish a regional headquarters structure, with a new subsidiary overseeing the Japanese market and local subsidiaries in the U.S., Korea, and China. This reorganization aims to improve operational efficiency, accelerate store openings, and foster growth in the Japanese market by tailoring management to regional needs.

Eternal Hospitality Group Expands Global Footprint and Reports Positive Sales Growth

Eternal Hospitality Group Co., Ltd. reported a steady increase in its store count for April 2025, with a total of 1,159 locations globally, reflecting growth in both domestic and international markets. The company also noted a year-on-year increase in sales and customer count for its Torikizoku brand, indicating a positive trend in consumer engagement and market performance.

Eternal Hospitality Group Announces Strategic Reorganization for Global Expansion

Eternal Hospitality Group Co., Ltd. announced a strategic organizational restructuring to enhance its international expansion and operational efficiency. The restructuring involves establishing a new subsidiary to oversee the Japanese market and implementing a regional headquarters structure to support agile management and growth, particularly in Japan, by creating region-specific operating companies.