SFP Holdings Co.Ltd. (3198) AI Stock Analysis

• Market Cap: ¥50.51B
• Dividend Yield: 1.3%
• Average Volume (3M): 32.64K
• Price to Earnings (P/E): 44.3
• Beta (1Y): 0.36
• Revenue Growth: 2.90%
• EPS Growth: -26.37%
• Country: JP
• Employees: 1,102
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 6.81
• Shares Outstanding: 22,813,688
• 10 Day Avg. Volume: 30,880
• 30 Day Avg. Volume: 32,640
• PEG Ratio: -3.79
• Price to Book (P/B): 5.30
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 27.02
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥2,352.00 ▲(12.11% Upside)

The overall stock score of 60.3 reflects a strong financial performance with solid revenue growth and efficient cash flow management. However, technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Balance Sheet Health

Very low leverage and a 62.5% equity ratio provide durable financial stability. This reduces refinancing and default risk, preserves capacity to fund capex or R&D from internal resources, and gives flexibility to weather cyclical downturns without urgent external financing.

Cash Generation

Strong free cash flow growth and >1x cash conversion ratios show persistent ability to turn profits into cash. That supports sustained reinvestment, opportunistic M&A or shareholder returns, and provides a buffer to finance operations through temporary earning shocks.

High Gross Margins

Very high gross margins with healthy operating margins reflect pricing power and manufacturing efficiency in precision components. Those structural advantages support long-term competitiveness, fund product development, and help maintain profitability even with modest top-line growth.

Negative Factors

Net Profit Margin Pressure

A drop in net margin from 6.0% to 4.9% driven by higher operating expenses signals margin compression risk. If cost pressures persist, retained earnings and internal funding capacity will be constrained, forcing tougher trade-offs between investment, dividends, or cost restructuring.

Earnings Volatility (EPS)

A ~41% EPS decline indicates notable earnings deterioration and volatility. Such a sharp contraction can reflect structural demand weakness, margin squeezes, or irregular charges, reducing the firm's ability to self-fund growth and increasing scrutiny on sustainable profitability recovery.

Moderate Revenue Growth

Top-line expansion is modest, around mid-single digits. Slow revenue growth limits scalability and means earnings improvement must rely heavily on margin gains. In competitive electronics and auto supply chains, limited organic growth raises reliance on cost control or M&A to accelerate long-term returns.

SFP Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

SFP Holdings Co., Ltd. engages in the management of restaurants in Japan. The company was formerly known as SFP Dining Co., Ltd. and changed its name to SFP Holdings Co., Ltd. in June 2017. SFP Holdings Co., Ltd. was founded in 1984 and is headquartered in Tokyo, Japan. SFP Holdings Co., Ltd. is a subsidiary of create restaurants holdings inc.

How the Company Makes Money

SFP Holdings generates revenue through multiple key streams, primarily from the sale of its manufactured products, including metal components and electronic devices. The company capitalizes on its expertise in precision manufacturing to serve a diverse client base, which includes major players in the automotive and telecommunications industries. Additionally, SFP Holdings benefits from strategic partnerships and long-term contracts with key customers, ensuring a steady flow of orders and repeat business. The company also invests in research and development to enhance product offerings, which contributes to its ability to command premium pricing and expand its market presence.

SFP Holdings Co.Ltd. Financial Statement Overview

Summary

SFP Holdings Co.Ltd. shows a strong financial position with solid revenue growth and efficient cash flow management. Despite a slight decline in net profit margin, the company has maintained healthy operational margins. Its balance sheet reflects low leverage, providing stability against market fluctuations. The positive cash flow trends indicate strong financial health and ability to fund growth initiatives or return value to shareholders.

Income Statement

The company exhibits a robust gross profit margin of 70.9% in the latest annual report, indicating strong cost management and pricing strategy. However, net profit margin has declined to 4.9%, a decrease from the previous year's 6.0%, primarily due to increased operational expenses. Revenue growth was 4.5% over the last year, showing steady growth in its competitive industry. The EBIT and EBITDA margins are healthy at 6.7% and 9.3%, respectively, reflecting operational efficiency, though slightly decreased from the prior year.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 62.5%, indicating financial stability and reduced leverage risk. The debt-to-equity ratio is low at 0.09, suggesting conservative financial management and low reliance on debt financing. Return on equity is modest at 17%, indicating decent profitability in relation to equity.

Cash Flow

The company experienced a substantial free cash flow growth rate of 21.0%, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is 1.38, demonstrating strong cash conversion efficiency from earnings. The free cash flow to net income ratio is 1.15, indicating that the company generates ample cash relative to its net income, supporting future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.70B	30.39B	29.08B	22.91B	10.40B	17.43B
Gross Profit	21.62B	21.55B	20.67B	16.20B	7.29B	12.49B
EBITDA	2.77B	2.83B	2.45B	1.66B	2.98B	-4.28B
Net Income	1.31B	1.49B	1.73B	549.81M	1.75B	-5.65B
Balance Sheet
Total Assets	13.50B	13.96B	13.30B	17.57B	16.10B	24.54B
Cash, Cash Equivalents and Short-Term Investments	4.55B	5.28B	4.52B	9.25B	5.78B	11.63B
Total Debt	96.66M	816.70M	1.06B	618.76M	768.28M	10.17B
Total Liabilities	4.54B	5.23B	5.56B	5.03B	3.66B	13.79B
Stockholders Equity	8.96B	8.73B	7.74B	12.54B	12.44B	10.74B
Cash Flow
Free Cash Flow	0.00	1.71B	1.42B	4.07B	3.26B	-5.26B
Operating Cash Flow	0.00	2.05B	2.19B	4.23B	3.30B	-4.82B
Investing Cash Flow	0.00	-485.29M	-848.76M	-95.23M	251.92M	-404.61M
Financing Cash Flow	0.00	-808.30M	-6.04B	-667.88M	-9.40B	9.71B

SFP Holdings Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2098.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3198, the sentiment is Positive. The current price of 2098 is below the 20-day moving average (MA) of 2211.25, below the 50-day MA of 2121.58, and below the 200-day MA of 2148.28, indicating a bullish trend. The MACD of 26.18 indicates Positive momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 25.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3198.

SFP Holdings Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3091	72 Outperform	¥57.75B	28.95	―	0.64%	12.90%	7.89%
3399	72 Outperform	¥66.01B	19.84	―	0.14%	24.70%	26.13%
9900	67 Neutral	¥58.45B	37.52	―	0.53%	13.01%	33.56%
7522	66 Neutral	¥38.68B	10.05	―	1.04%	5.47%	61.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3198	60 Neutral	¥50.51B	44.33	―	1.30%	2.90%	-26.37%
8163	55 Neutral	¥51.48B	61.12	―	0.62%	17.12%	-58.47%

SFP Holdings Co.Ltd. Corporate Events

SFP Holdings Sees Profit Decline Despite Higher Sales, Keeps Full-Year Outlook and Raises Dividend

SFP Holdings reported consolidated net sales of ¥22.75 billion for the nine months ended November 30, 2025, a modest 2.0% year-on-year increase, while operating profit fell 24.8% to ¥1.03 billion and profit attributable to owners of parent dropped 33.5% to ¥688 million, reflecting margin pressure despite higher revenues. The company’s financial position remained solid, with total assets of ¥13.08 billion, equity of ¥8.79 billion and an equity ratio rising to 67.2%, and it maintained its dividend stance, planning a slight year-on-year increase in annual dividends to ¥28 per share; management also left its full-year forecast unchanged, targeting ¥32.5 billion in net sales and a 14–15% rise in full-year profit, indicating confidence in earnings recovery in the final quarter despite weaker interim profitability.

The most recent analyst rating on (JP:3198) stock is a Hold with a Yen2273.00 price target. To see the full list of analyst forecasts on SFP Holdings Co.Ltd. stock, see the JP:3198 Stock Forecast page.