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

• Market Cap: ¥43.25B
• Dividend Yield: 0.65%
• Average Volume (3M): 69.78K
• Price to Earnings (P/E): 33.9
• Beta (1Y): 0.35
• Revenue Growth: 16.40%
• EPS Growth: -14.88%
• Country: JP
• Employees: 895
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Restaurants
• EPS (TTM): 15.66
• Shares Outstanding: 21,655,600
• 10 Day Avg. Volume: 139,340
• 30 Day Avg. Volume: 69,776
• PEG Ratio: -0.65
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥2,166.00 ▲(8.46%Upside)

HotLand Co., Ltd. shows strong financial performance with robust growth and efficient management. However, technical indicators indicate bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors, combined with a low dividend yield, result in a moderate overall stock score.

HotLand Co., Ltd. Business Overview & Revenue Model

Company Description

HotLand Co., Ltd. is a Japanese company engaged in the food service industry, primarily operating and managing a chain of restaurants. The company is renowned for its Okonomiyaki and Takoyaki specialty dishes, with its flagship brand being 'Gindaco,' which is a leading takoyaki chain in Japan. HotLand Co., Ltd. is committed to delivering authentic and delicious Japanese street food experiences to customers both domestically and internationally.

How the Company Makes Money

HotLand Co., Ltd. generates revenue primarily through its restaurant operations, where it sells a variety of Japanese street foods, predominantly Takoyaki and Okonomiyaki, under the brand 'Gindaco.' The company's revenue streams include direct sales from its own-operated restaurant locations, franchise fees, and royalties from franchisees. Additionally, HotLand Co., Ltd. leverages partnerships and collaborations to expand its brand presence both within Japan and overseas. The company may also engage in seasonal promotions and menu innovations to attract more customers and boost sales. A significant portion of its income is derived from densely populated urban areas where customer foot traffic is high.

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 manageable. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.13B	38.71B	32.16B	29.68B	28.73B
Gross Profit	25.87B	22.16B	18.56B	18.07B	17.55B
EBITDA	4.28B	3.10B	3.29B	4.82B	599.90M
Net Income	1.85B	1.02B	1.36B	2.08B	-1.03B
Balance Sheet
Total Assets	28.52B	23.71B	22.06B	21.31B	18.17B
Cash, Cash Equivalents and Short-Term Investments	3.73B	2.86B	3.34B	3.16B	2.18B
Total Debt	7.61B	6.16B	4.87B	5.39B	6.30B
Total Liabilities	15.98B	12.96B	11.38B	12.19B	11.63B
Stockholders Equity	11.84B	10.28B	10.20B	8.68B	6.11B
Cash Flow
Free Cash Flow	1.08B	709.68M	1.23B	3.63B	-491.72M
Operating Cash Flow	3.95B	2.94B	2.90B	5.15B	693.21M
Investing Cash Flow	-3.76B	-2.68B	-1.84B	-2.40B	-1.65B
Financing Cash Flow	645.82M	-740.75M	-909.35M	-1.82B	782.78M

HotLand Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1997.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3196, the sentiment is Negative. The current price of 1997 is below the 20-day moving average (MA) of 2102.55, below the 50-day MA of 2128.28, and below the 200-day MA of 2163.29, indicating a bearish trend. The MACD of -31.14 indicates Positive momentum. The RSI at 24.08 is Positive, neither overbought nor oversold. The STOCH value of 5.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3196.

HotLand Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3198	70 Outperform	¥51.33B	34.54		1.16%	4.50%	-10.16%
3561	67 Neutral	¥41.70B	23.65	17.38%	1.30%	7.52%	-19.94%
2705	67 Neutral	¥38.26B	32.66		0.09%	12.52%	-5.69%
Sector *	67 Neutral	¥252.23B	13.18	6.50%	2.78%	5.06%	-11.83%
7522	65 Neutral	¥40.83B	13.25		0.99%	7.79%	-5.17%
3196	58 Neutral	¥43.25B	33.92		0.65%	16.40%	-14.88%
3133	42 Neutral	¥40.39B	―		―	14.27%	8.90%