HotLand Co., Ltd. (3196) AI Stock Analysis

• Market Cap: ¥45.63B
• Dividend Yield: 0.62%
• Average Volume (3M): 33.62K
• Price to Earnings (P/E): 51.9
• Beta (1Y): 0.39
• Revenue Growth: 13.05%
• EPS Growth: -29.04%
• Country: JP
• Employees: 895
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 8.09
• Shares Outstanding: 21,655,600
• 10 Day Avg. Volume: 35,100
• 30 Day Avg. Volume: 33,616
• PEG Ratio: 0.29
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 42.27
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 23.5
• Revenue Forecast (FY): ¥52.60B

• Rating: 59 Neutral
• Price Target: ¥2,135.00 ▲(2.35% Upside)

HotLand Co., Ltd. shows strong financial performance with robust revenue growth and efficient cost management. However, the technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation. The modest dividend yield offers limited income potential. Investors should weigh the strong financials against the technical and valuation concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market expansion and product demand, supporting long-term business sustainability and competitive positioning.

Cash Generation

Robust cash generation enhances financial flexibility, allowing for reinvestment in growth initiatives and providing a buffer against economic downturns.

Profitability

Improved profitability reflects efficient operations and cost management, strengthening the company's ability to sustain growth and invest in future opportunities.

Negative Factors

Earnings Per Share Decline

A sharp decline in EPS can signal challenges in maintaining profitability, potentially impacting investor confidence and future capital raising efforts.

Rising Debt Levels

Increasing debt levels may strain financial resources and limit strategic flexibility, posing risks to long-term financial health if not managed prudently.

Operational Cost Concerns

A declining EBIT margin suggests rising operational costs, which could pressure future profitability if not addressed through cost control measures.

HotLand Co., Ltd. Business Overview & Revenue Model

Company Description

HotLand Co., Ltd. (3196) is a Japanese company that specializes in the food industry, primarily focusing on the operation of food courts and restaurants. The company is known for its innovative dining concepts and has established a strong presence in the food service sector, offering a diverse range of culinary options that cater to various tastes and preferences. HotLand operates both its own branded outlets and franchises, providing a unique dining experience that combines quality with convenience.

How the Company Makes Money

HotLand Co., Ltd. generates revenue primarily through the operation of its food courts and restaurants, with key revenue streams coming from direct sales of food and beverages to customers. The company also benefits from franchise fees and royalties from its franchised locations. Additionally, partnerships with suppliers and other food service businesses contribute to its earnings by ensuring a consistent supply of quality ingredients and products. Seasonal promotions, marketing campaigns, and an emphasis on customer experience further enhance sales and profitability.

HotLand Co., Ltd. Financial Statement Overview

Summary

HotLand Co., Ltd. demonstrates strong financial performance with consistent revenue and profit growth, efficient cost management, and solid cash generation. While leverage has increased, it remains at a manageable level. The company is well-positioned with a healthy equity base and effective cash flow management, paving the way for sustainable growth.

Income Statement

HotLand Co., Ltd. has shown robust revenue growth with a 19.1% increase from 2023 to 2024. The gross profit margin improved to 56.1%, reflecting efficient cost management. Net profit margin increased to 4.0%, indicating better profitability. EBIT and EBITDA margins were stable, at 5.5% and 8.9%, respectively, suggesting operational efficiency. However, the EBIT margin saw a slight decline compared to prior years, which could indicate rising operational costs.

Balance Sheet

The company maintains a manageable debt-to-equity ratio of 0.64, indicating prudent leverage use. Return on Equity (ROE) improved to 15.6%, showcasing effective equity utilization. The equity ratio stands at 41.5%, suggesting a solid equity base. However, the increase in total debt in recent years requires monitoring to prevent potential leverage risks.

Cash Flow

Operating cash flow increased significantly, highlighting strong cash generation abilities. Free cash flow grew by 53.5%, indicating improved financial flexibility. The operating cash flow to net income ratio of 2.14 reflects efficient cash conversion. However, free cash flow to net income ratio is slightly lower, suggesting potential capital expenditure needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.72B	46.13B	38.71B	32.16B	29.68B	28.73B
Gross Profit	27.30B	25.87B	22.16B	18.56B	18.07B	17.55B
EBITDA	3.21B	4.28B	3.10B	3.29B	4.40B	599.90M
Net Income	582.14M	1.85B	1.02B	1.36B	2.08B	-1.14B
Balance Sheet
Total Assets	29.36B	28.52B	23.71B	22.06B	21.31B	18.17B
Cash, Cash Equivalents and Short-Term Investments	4.16B	3.73B	2.86B	3.34B	3.16B	2.18B
Total Debt	9.09B	7.61B	6.16B	4.87B	5.39B	6.30B
Total Liabilities	17.37B	15.98B	12.96B	11.38B	12.19B	11.63B
Stockholders Equity	11.25B	11.84B	10.28B	10.20B	8.68B	6.11B
Cash Flow
Free Cash Flow	0.00	1.08B	709.68M	1.23B	3.63B	-491.72M
Operating Cash Flow	0.00	3.95B	2.94B	2.90B	5.15B	693.21M
Investing Cash Flow	0.00	-3.76B	-2.68B	-1.84B	-2.40B	-1.65B
Financing Cash Flow	0.00	645.82M	-740.75M	-909.35M	-1.82B	782.78M

HotLand Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2086.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3196, the sentiment is Positive. The current price of 2086 is below the 20-day moving average (MA) of 2089.10, above the 50-day MA of 2079.22, and below the 200-day MA of 2089.73, indicating a bullish trend. The MACD of 13.41 indicates Negative momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3196.

HotLand Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3561	66 Neutral	$41.52B	20.75	18.06%	1.39%	4.01%	3.32%
2705	62 Neutral	¥41.99B	37.56	―	0.17%	15.53%	-26.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3198	60 Neutral	¥46.61B	35.49	―	1.32%	2.90%	-26.37%
7522	60 Neutral	¥38.72B	10.06	―	1.06%	5.47%	61.89%
3196	59 Neutral	¥45.63B	51.95	―	0.62%	13.05%	-29.04%
3133	37 Underperform	¥35.66B	-38.20	―	―	20.33%	-548.63%