tiprankstipranks
Trending News
More News >
HotLand Co., Ltd. (JP:3196)
:3196
Japanese Market

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

Compare
0 Followers

Top Page

JP

HotLand Co., Ltd.

(3196)

Rating:58Neutral
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. (3196) vs. iShares MSCI Japan ETF (EWJ)

HotLand Co., Ltd. Business Overview & Revenue Model

Company DescriptionHotLand 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 MoneyHotLand 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
78
Positive
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
72
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue46.13B38.71B32.16B29.68B28.73B
Gross Profit25.87B22.16B18.56B18.07B17.55B
EBITDA4.28B3.10B3.29B4.82B599.90M
Net Income1.85B1.02B1.36B2.08B-1.03B
Balance Sheet
Total Assets28.52B23.71B22.06B21.31B18.17B
Cash, Cash Equivalents and Short-Term Investments3.73B2.86B3.34B3.16B2.18B
Total Debt7.61B6.16B4.87B5.39B6.30B
Total Liabilities15.98B12.96B11.38B12.19B11.63B
Stockholders Equity11.84B10.28B10.20B8.68B6.11B
Cash Flow
Free Cash Flow1.08B709.68M1.23B3.63B-491.72M
Operating Cash Flow3.95B2.94B2.90B5.15B693.21M
Investing Cash Flow-3.76B-2.68B-1.84B-2.40B-1.65B
Financing Cash Flow645.82M-740.75M-909.35M-1.82B782.78M

HotLand Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1997.00
Price Trends
50DMA
2128.28
Negative
100DMA
2133.05
Negative
200DMA
2163.29
Negative
Market Momentum
MACD
-31.14
Positive
RSI
24.08
Positive
STOCH
5.09
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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥51.33B34.54
1.16%4.50%-10.16%
67
Neutral
¥41.70B23.6517.38%1.30%7.52%-19.94%
67
Neutral
¥38.26B32.66
0.09%12.52%-5.69%
67
Neutral
¥252.23B13.186.50%2.78%5.06%-11.83%
65
Neutral
¥40.83B13.25
0.99%7.79%-5.17%
58
Neutral
¥43.25B33.92
0.65%16.40%-14.88%
42
Neutral
¥40.39B
14.27%8.90%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3196
HotLand Co., Ltd.
1,979.00
-411.26
-17.21%
JP:2705
OOTOYA Holdings Co., Ltd.
5,280.00
44.90
0.86%
JP:3133
Kaihan Co., Ltd.
713.00
-204.00
-22.25%
JP:3198
SFP Holdings Co.Ltd.
2,248.00
138.00
6.54%
JP:7522
Watami Co., Ltd.
1,006.00
72.23
7.74%
JP:3561
CHIKARANOMOTO HOLDINGS Co
1,380.00
-95.96
-6.50%
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: Jun 28, 2025