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

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

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JP

Eternal Hospitality Group Co.,Ltd.

(3193)

Rating:74Outperform
Price Target:
¥3,629.00
▲(15.94%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. (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 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 MoneyEternal 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
82
Very Positive
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
76
Positive
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
65
Positive
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
44.05B41.91B33.45B20.29B15.59B27.54B
Gross Profit
30.54B29.09B23.44B14.31B10.78B19.60B
EBIT
2.91B3.25B1.42B1.99B-264.72M983.28M
EBITDA
2.81B4.09B1.87B2.85B495.78M387.74M
Net Income Common Stockholders
1.82B2.13B616.27M1.13B-466.42M-763.33M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.93B8.36B8.63B8.66B4.71B8.68B
Total Assets
19.40B20.65B19.32B18.47B16.83B19.95B
Total Debt
3.15B3.41B5.76B6.25B7.79B8.91B
Net Debt
-3.79B-4.95B-2.87B-2.40B3.07B237.38M
Total Liabilities
10.64B11.96B12.43B12.13B11.61B14.29B
Stockholders Equity
8.76B8.69B6.89B6.34B5.22B5.67B
Cash FlowFree Cash Flow
0.002.89B845.78M5.58B-2.75B-428.24M
Operating Cash Flow
0.004.44B1.72B5.91B-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-1.13B4.99B

Eternal Hospitality Group Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3130.00
Price Trends
50DMA
2844.86
Positive
100DMA
2746.36
Positive
200DMA
3053.25
Positive
Market Momentum
MACD
79.63
Negative
RSI
59.95
Neutral
STOCH
57.76
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 3130 is above the 20-day moving average (MA) of 2973.50, above the 50-day MA of 2844.86, and above the 200-day MA of 3053.25, indicating a bullish trend. The MACD of 79.63 indicates Negative momentum. The RSI at 59.95 is Neutral, neither overbought nor oversold. The STOCH value of 57.76 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥35.69B23.25
1.49%11.52%-19.79%
74
Outperform
¥29.59B17.04
2.36%6.21%32.82%
68
Neutral
¥46.21B36.25
0.61%16.40%-14.88%
67
Neutral
¥38.40B31.39
0.09%12.52%-5.69%
65
Neutral
¥41.16B11.54
0.99%7.79%-5.17%
64
Neutral
¥23.01B25.90
0.29%3.93%
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3193
Eternal Hospitality Group Co.,Ltd.
3,080.00
-543.74
-15.00%
JP:2705
OOTOYA Holdings Co., Ltd.
5,300.00
224.75
4.43%
JP:2753
AMIYAKI TEI CO., LTD.
1,440.00
-547.82
-27.56%
JP:2882
EAT&HOLDINGS Co., Ltd.
2,028.00
-61.28
-2.93%
JP:3196
HotLand Co., Ltd.
2,134.00
-385.68
-15.31%
JP:7522
Watami Co., Ltd.
1,014.00
125.78
14.16%

Eternal Hospitality Group Co.,Ltd. Corporate Events

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.

Eternal Hospitality Group Announces Strategic Reorganization for Global Expansion
Apr 25, 2025

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.

Eternal Hospitality Group Expands Internationally Amidst Steady Sales Growth
Apr 7, 2025

Eternal Hospitality Group Co., Ltd. reported its store count for March 2025, highlighting growth in both domestic and international markets. The company saw an increase in the number of stores, particularly in South Korea, Taiwan, and China, reflecting its strategic expansion efforts. Despite a slight decline in same-store sales and customer count compared to the previous year, the overall sales trend remains positive, indicating resilience and potential for continued growth.

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.