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

• Market Cap: ¥36.21B
• Dividend Yield: 1.52%
• Average Volume (3M): 75.82K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.96
• Revenue Growth: 11.52%
• EPS Growth: -19.79%
• Country: JP
• Employees: 920
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Restaurants
• EPS (TTM): 31.37
• Shares Outstanding: 11,622,300
• 10 Day Avg. Volume: 111,530
• 30 Day Avg. Volume: 75,816
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥3,413.00
• Price Target Upside: 9.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥3,457.00 ▲(10.62% Upside)

Eternal Hospitality Group's strong financial performance is the most significant factor driving its stock score, supported by robust revenue and profit growth and effective debt management. The technical analysis suggests a neutral to slightly positive outlook, while the valuation indicates moderate pricing. The absence of earnings call data and corporate events does not impact the overall score.

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

Company Description

Eternal Hospitality Group Co., Ltd. (3193) is a prominent player in the hospitality sector, specializing in the development, management, and operation of hotels and resorts. The company focuses on providing high-quality accommodations and exceptional customer service across various market segments, including luxury, mid-scale, and budget-friendly properties. In addition to hotel management, Eternal Hospitality Group also offers ancillary services such as event planning, catering, and travel management, aiming to enhance the overall guest experience and create lasting memories.

How the Company Makes Money

Eternal Hospitality Group generates revenue primarily through its hotel operations, which include room bookings, food and beverage sales, and event hosting services. The company earns income from both direct bookings and partnerships with online travel agencies (OTAs) that facilitate reservations. Additionally, the group benefits from ancillary services like catering and event planning, which contribute to its overall profitability. Strategic partnerships with local businesses and tourism boards also play a crucial role in driving customer traffic and enhancing the brand's visibility. The company's diverse portfolio of properties allows it to tap into various market segments, optimizing revenue across different economic conditions.

Eternal Hospitality Group Co.,Ltd. Financial Statement Overview

Summary

Eternal Hospitality Group demonstrates solid growth and profitability, with strong revenue and profit margins. The balance sheet is stable with reduced leverage, but 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	41.91B	33.45B	20.29B	15.59B	27.54B
Gross Profit	29.09B	23.44B	14.31B	10.78B	19.60B
EBITDA	4.09B	1.87B	2.85B	495.78M	387.74M
Net Income	2.13B	616.27M	1.13B	-466.42M	-763.33M
Balance Sheet
Total Assets	20.65B	19.32B	18.47B	16.83B	19.95B
Cash, Cash Equivalents and Short-Term Investments	8.36B	8.63B	8.66B	4.71B	8.68B
Total Debt	3.41B	5.76B	6.25B	7.79B	8.91B
Total Liabilities	11.96B	12.43B	12.13B	11.61B	14.29B
Stockholders Equity	8.69B	6.89B	6.34B	5.22B	5.67B
Cash Flow
Free Cash Flow	2.89B	845.78M	5.58B	-2.75B	-428.24M
Operating Cash Flow	4.44B	1.72B	5.91B	-2.69B	-191.14M
Investing Cash Flow	-1.99B	-1.20B	-473.35M	-111.17M	-247.91M
Financing Cash Flow	-2.72B	-588.00M	-1.54B	-1.13B	4.99B

Eternal Hospitality Group Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3125.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3193, the sentiment is Positive. The current price of 3125 is above the 20-day moving average (MA) of 3085.62, above the 50-day MA of 3085.28, and above the 200-day MA of 2939.87, indicating a bullish trend. The MACD of -3.88 indicates Positive momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 55.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2753	78 Outperform	¥31.99B	20.22		2.20%	3.40%	1.61%
3193	73 Outperform	¥36.21B	23.59		1.52%	11.52%	-19.79%
2705	67 Neutral	¥38.91B	32.73		0.09%	12.52%	-5.69%
7522	64 Neutral	¥42.01B	13.64		0.95%	7.79%	-5.17%
2882	62 Neutral	¥23.83B	69.86		0.26%	6.23%	-4.80%
Sector *	61 Neutral	$16.54B	9.49	-9.03%	3.32%	1.50%	-24.21%
3196	58 Neutral	¥43.38B	34.02		0.65%	16.40%	-14.88%

Eternal Hospitality Group Co.,Ltd. Corporate Events

Eternal Hospitality Group Reports Growth in Store Count and Sales for July 2025

In its July 2025 report, Eternal Hospitality Group Co., Ltd. announced a total of 1,158 stores, with a notable increase in overseas locations, reflecting its strategic expansion efforts. The company reported a year-on-year increase in all-store sales and same-store sales, indicating robust performance and growth in customer engagement, despite a slight dip in average check values.

Eternal Hospitality Group Expands into Vietnam with New Subsidiary

Eternal Hospitality Group Co., Ltd. announced the establishment of a wholly-owned subsidiary in Vietnam, aiming to expand its yakitori business in the Southeast Asian market. The new subsidiary, ETERNAL HOSPITALITY VIETNAM Co., Ltd., will open YAKITORI DAIKICHI brand restaurants in Hanoi to assess local demand and market characteristics, which will inform a broader expansion strategy for the TORIKIZOKU brand. This move is part of the company’s vision to create a ‘Global YAKITORI Family’ and leverage the growing food service market in Vietnam, although the financial impact on the company’s results is expected to be minimal.

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.