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Eternal Hospitality Group Co.,Ltd. (JP:3193)
:3193
Japanese Market
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Eternal Hospitality Group Co.,Ltd. (3193) AI Stock Analysis

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JP:3193

Eternal Hospitality Group Co.,Ltd.

(3193)

Rating:63Neutral
Price Target:
¥3,207.00
▲(4.46% Upside)
Eternal Hospitality Group's strong financial performance is the most significant factor, reflecting robust revenue and profit growth, efficient operations, and solid cash flow. However, bearish technical indicators and a relatively high P/E ratio suggest caution. The absence of earnings call data and corporate events means these factors do not influence the score.

Eternal Hospitality Group Co.,Ltd. (3193) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionEternal 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 MoneyEternal 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 exhibits strong financial performance with significant revenue and profit growth, efficient operations, and solid cash flow generation. The balance sheet reflects financial stability with effective debt management. However, historical volatility in profitability and cash flows suggests potential risks that need to be monitored.
Income Statement
85
Very Positive
Eternal Hospitality Group has demonstrated strong revenue growth, with a 25.3% increase from 2023 to 2024. The gross profit margin is robust at 69.4%, and the net profit margin improved significantly to 5.1% in 2024. EBIT and EBITDA margins are healthy, indicating operational efficiency. However, past years showed volatility in profitability, which is a potential risk.
Balance Sheet
78
Positive
The company maintains a solid equity base with an equity ratio of 42.1% in 2024, reflecting financial stability. The debt-to-equity ratio has improved to 0.39, indicating effective debt management. Return on equity is strong at 24.5%, showcasing efficient use of equity. However, historical fluctuations in equity and liabilities suggest potential risks in financial stability.
Cash Flow
82
Very Positive
Eternal Hospitality Group has shown impressive free cash flow growth of 241.3% from 2023 to 2024, supported by strong operating cash flow. The operating cash flow to net income ratio is 2.09, indicating good cash generation relative to earnings. The free cash flow to net income ratio is 1.36, reflecting strong cash conversion. However, past cash flow volatility poses a potential risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue44.05B41.91B33.45B20.29B15.59B27.54B
Gross Profit30.54B29.09B23.44B14.31B10.78B19.60B
EBITDA2.81B4.09B1.87B2.72B495.78M387.74M
Net Income1.82B2.13B616.27M1.13B-466.42M-763.33M
Balance Sheet
Total Assets19.94B20.65B19.32B18.47B16.83B19.95B
Cash, Cash Equivalents and Short-Term Investments6.70B8.36B8.63B8.66B4.71B8.68B
Total Debt2.88B3.41B5.76B6.25B7.79B8.91B
Total Liabilities10.76B11.96B12.43B12.13B11.61B14.29B
Stockholders Equity9.18B8.69B6.89B6.34B5.22B5.67B
Cash Flow
Free Cash Flow0.002.89B845.78M5.58B-2.75B-428.24M
Operating Cash Flow0.004.44B1.72B5.91B-2.69B-191.14M
Investing Cash Flow0.00-1.99B-1.20B-473.35M-111.17M-247.91M
Financing Cash Flow0.00-2.72B-588.00M-1.54B-1.13B4.99B

Eternal Hospitality Group Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3070.00
Price Trends
50DMA
3114.14
Negative
100DMA
3017.35
Positive
200DMA
2893.44
Positive
Market Momentum
MACD
-33.72
Positive
RSI
48.21
Neutral
STOCH
40.00
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 3070 is below the 20-day moving average (MA) of 3125.50, below the 50-day MA of 3114.14, and above the 200-day MA of 2893.44, indicating a neutral trend. The MACD of -33.72 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥31.68B20.03
2.18%3.40%1.61%
67
Neutral
¥40.54B34.07
0.18%13.81%-14.64%
66
Neutral
¥44.00B74.19
0.64%14.82%-65.01%
63
Neutral
¥34.64B22.56
1.50%11.52%-19.79%
61
Neutral
$17.92B12.81-0.76%2.98%1.30%-14.28%
61
Neutral
¥40.55B17.22
1.00%6.41%-35.96%
57
Neutral
¥23.57B69.09
0.74%6.23%-4.80%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3193
Eternal Hospitality Group Co.,Ltd.
3,070.00
70.75
2.36%
JP:2705
OOTOYA Holdings Co., Ltd.
5,630.00
479.64
9.31%
JP:2753
AMIYAKI TEI CO., LTD.
1,561.00
-351.62
-18.38%
JP:2882
EAT&HOLDINGS Co., Ltd.
2,093.00
60.77
2.99%
JP:3196
HotLand Co., Ltd.
2,025.00
-301.39
-12.96%
JP:7522
Watami Co., Ltd.
999.00
150.39
17.72%

Eternal Hospitality Group Co.,Ltd. Corporate Events

Eternal Hospitality Group Reports Growth in Store Count and Sales for July 2025
Aug 7, 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
Jul 25, 2025

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
Jul 7, 2025

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
Jun 6, 2025

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
Jun 6, 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
May 30, 2025

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
May 30, 2025

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
May 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 02, 2025