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Eternal Hospitality Group Co.,Ltd.
(3193)
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Rating:64Neutral
Price Target:
¥1,504.00
▼(-49.31% Downside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by solid financial fundamentals (healthy gross margin, improved leverage, strong ROE) but is held back by declining net profitability and weak cash flow conversion. Technicals are mixed-to-soft with the stock below key longer-term moving averages, while valuation appears reasonable with a moderate P/E and a supportive dividend yield.
Positive Factors
Strong gross margin
A 68.54% gross margin reflects efficient cost control in core food and beverage operations. This structural margin buffer helps absorb commodity and wage inflation, supports reinvestment in stores and menu innovation, and underpins durable profitability over the next several months.
Negative Factors
Weak cash conversion
With OCF/Net Income at 0.32 and FCF/Net Income at 7.02%, reported profits are not translating into cash. Poor cash conversion limits the firm's ability to fund capex, franchise support, dividends, or debt repayment without external financing, creating medium-term risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong gross margin
A 68.54% gross margin reflects efficient cost control in core food and beverage operations. This structural margin buffer helps absorb commodity and wage inflation, supports reinvestment in stores and menu innovation, and underpins durable profitability over the next several months.
Read all positive factors
Eternal Hospitality Group Co.,Ltd. (3193) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥31.98B
Dividend Yield2.5%
Average Volume (3M)84.58K
Price to Earnings (P/E)14.9
Beta (1Y)0.73
Revenue Growth13.45%
EPS Growth39.79%
CountryJP
Employees1,030
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)92.57
Shares Outstanding23,244,600
10 Day Avg. Volume114,620
30 Day Avg. Volume84,580
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)3.62
Price to Sales (P/S)0.76
P/FCF Ratio201.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)98.4
Revenue Forecast (FY)¥59.10B
Eternal Hospitality Group Co.,Ltd. Business Overview & Revenue Model
Company Description
Eternal Hospitality Group Co.,Ltd. (3193) operates in the food-service/hospitality sector in Japan, running restaurant and dining brands that sell meals and beverages to consumers through company-operated locations and/or franchised outlets. null...
How the Company Makes Money
The company primarily makes money by selling food and beverages through its restaurant operations, earning revenue from customer transactions (dine-in and, where offered, takeaway/delivery). Additional monetization can come from franchise-related ...
Eternal Hospitality Group Co.,Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.85B | 46.36B | 41.91B | 33.45B | 20.29B | 15.59B |
| Gross Profit | 34.70B | 31.77B | 29.09B | 23.44B | 14.31B | 10.78B |
| EBITDA | 4.95B | 4.34B | 4.09B | 1.87B | 2.72B | 495.78M |
| Net Income | 2.14B | 1.72B | 2.13B | 616.27M | 1.13B | -466.42M |
Balance Sheet | ||||||
| Total Assets | 22.46B | 21.55B | 20.80B | 19.32B | 18.59B | 16.98B |
| Cash, Cash Equivalents and Short-Term Investments | 7.34B | 7.49B | 8.45B | 8.63B | 8.72B | 4.71B |
| Total Debt | 2.35B | 3.29B | 3.41B | 5.76B | 6.25B | 7.79B |
| Total Liabilities | 11.62B | 11.77B | 12.11B | 12.43B | 12.25B | 11.76B |
| Stockholders Equity | 10.84B | 9.77B | 8.69B | 6.89B | 6.34B | 5.22B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 175.00M | 2.89B | 845.78M | 5.58B | -2.75B |
| Operating Cash Flow | 0.00 | 2.49B | 4.44B | 1.72B | 5.91B | -2.69B |
| Investing Cash Flow | 0.00 | -2.69B | -1.99B | -1.20B | -473.35M | -111.17M |
| Financing Cash Flow | 0.00 | -689.00M | -2.72B | -588.00M | -1.54B | -1.13B |
Eternal Hospitality Group Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥62.22B | 50.49 | ― | 0.17% | 17.94% | 0.67% | |
64 Neutral | ¥31.98B | 14.89 | ― | 1.35% | 13.45% | 39.79% | |
63 Neutral | ¥38.31B | 9.22 | ― | 1.04% | 5.13% | 16.52% | |
63 Neutral | ¥62.61B | 18.00 | ― | 2.41% | 17.21% | -27.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | ¥42.63B | 58.97 | ― | 0.62% | 9.67% | -52.65% |
* Consumer Cyclical Sector Average
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Eternal Hospitality Group Co.,Ltd. Corporate Events
Eternal Hospitality Group Adds Stores as Torikizoku Sales Normalize After Anniversary Boost
Jul 7, 2026
Eternal Hospitality Group continued to grow its restaurant footprint in June 2026, lifting its global store count to 1,185 outlets, including 1,156 in Japan and 29 overseas. Expansion was driven by incremental openings in core Torikizoku formats a...
Eternal Hospitality Group Lifts Nine-Month Profit 37% and Confirms Strong FY2026 Outlook
Jun 5, 2026
Eternal Hospitality Group Co., Ltd. reported robust growth for the nine months ended April 30, 2026, with net sales rising 13.3% year on year to ¥38.3 billion and profit attributable to owners of parent jumping 37.2% to ¥1.53 billion, re...
Eternal Hospitality Expands Torikizoku Network as Same-Store Sales Stay Resilient
Jun 5, 2026
Eternal Hospitality Group reported that its global network reached 1,178 stores at the end of May 2026, including 1,150 outlets in Japan and 28 overseas, with gradual expansion driven by Torikizoku Comrade Chain locations and new openings in China...
Eternal Hospitality Sets Up U.S. Holding Company to Drive Yakitori Expansion
Jun 5, 2026
Eternal Hospitality Group Co., Ltd. has approved the creation of ETERNAL HOSPITALITY USA INC., an intermediate holding company in Delaware that will be a wholly owned subsidiary. The new entity will oversee U.S. operations, including TORIKIZOKU US...
Eternal Hospitality Group Plans 2-for-1 Stock Split and Expands Shareholder Perks
Jun 5, 2026
Eternal Hospitality Group will implement a 2-for-1 stock split effective August 1, 2026, doubling its outstanding shares to 23,244,600 and raising authorized shares to 61,694,400 in a move aimed at lowering the investment unit price, improving liq...
Eternal Hospitality grows store network as Torikizoku sales climb in April
May 12, 2026
Eternal Hospitality Group reported that its global network reached 1,173 stores at the end of April 2026, comprising 1,146 outlets in Japan and 27 overseas, with recent expansion in China, Hong Kong, Taiwan and the opening of a first store in Viet...
Glossary
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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.