Flying Garden Co., Ltd. (3317) AI Stock Analysis

• Market Cap: ¥4.96B
• Dividend Yield: 0.95%
• Average Volume (3M): 3.51K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.42
• Revenue Growth: 10.67%
• EPS Growth: 36.51%
• Country: JP
• Employees: 168
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 33.09
• Shares Outstanding: 2,898,336
• 10 Day Avg. Volume: 2,380
• 30 Day Avg. Volume: 3,513
• PEG Ratio: -0.19
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 278.72
• 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: 76 Outperform
• Price Target: ¥1,776.00 ▲(15.10% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

Overall score is supported primarily by a very strong, low-risk balance sheet and solid operating performance, offset by weak/volatile free cash flow in FY2025. Technicals are favorable with an established uptrend, while valuation appears reasonable with a modest dividend yield.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal debt enhances financial flexibility and resilience, allowing the company to navigate industry cycles effectively.

Revenue Growth

Consistent revenue growth indicates successful market positioning and product demand, supporting long-term business sustainability and expansion.

Healthy Gross Margin

A strong gross margin reflects efficient cost management and pricing power, contributing to sustainable profitability and competitive advantage.

Negative Factors

Free Cash Flow Volatility

Volatile free cash flow can limit reinvestment and financial planning, posing risks to long-term growth and operational stability.

Profitability Softening

Declining profitability indicates cost pressures and challenges in converting sales into profit, potentially impacting future earnings growth.

Operating Cash Flow Below Net Income

Operating cash flow lagging behind net income suggests potential issues in cash generation efficiency, which may affect liquidity and investment capacity.

Flying Garden Co., Ltd. Business Overview & Revenue Model

Company Description

Flying Garden Co., Ltd. operates a chain of restaurants under the Flying Garden name in Japan. It primarily offers bomb hamburgers. The company was founded in 1976 and is headquartered in Oyama, Japan.

How the Company Makes Money

Flying Garden Co., Ltd. generates revenue primarily through the operation of its restaurant chain. The company earns money by serving meals to customers who dine in at their various locations. Additionally, revenue can be supplemented by offering takeout and delivery services, catering to the growing demand for convenience. The company may also engage in promotional partnerships or collaborations with food suppliers and beverage brands to enhance its offerings and attract more customers. Other potential revenue streams could include loyalty programs and gift card sales, though specific details are not available.

Flying Garden Co., Ltd. Financial Statement Overview

Summary

Strong, conservative balance sheet with effectively zero debt (Balance Sheet Score 90) and steadily growing equity supports resilience. Income statement is solid with revenue expansion and healthy gross margin, but profitability softened in FY2025 (Income Statement Score 74). Cash flow is the main drag: free cash flow fell sharply in FY2025 and operating cash flow has trailed net income (Cash Flow Score 56).

Income Statement

Revenue has recovered and expanded over the last several years, reaching 8.27B in FY2025 with continued positive growth. Profitability is solid for the industry, with FY2025 gross margin still strong (~65%) and operating profitability around mid-single digits (EBIT margin ~6.7%). However, margins have softened versus FY2022–FY2024 and net margin declined to ~4.3% in FY2025 (from ~5.1% in FY2024), indicating some cost pressure and less efficient conversion of sales into profit.

Balance Sheet

The balance sheet is very conservative: total debt is effectively zero in recent years, resulting in minimal leverage risk and strong financial flexibility. Equity has grown steadily (to ~3.26B in FY2025) alongside rising assets, supporting resilience through restaurant-cycle volatility. Return on equity remains healthy (~10.8% in FY2025), though it has come down from the stronger FY2022–FY2024 levels, suggesting returns have moderated as profitability eased.

Cash Flow

Cash generation from operations is consistently positive and improved versus earlier years, reaching ~681M in FY2025. The key weakness is free cash flow volatility: it was strong in FY2022 and FY2024 but dropped sharply to ~14M in FY2025, meaning most operating cash flow was absorbed by reinvestment or working-capital needs. Cash flow quality is mixed, with operating cash flow running below net income in recent years (FY2025 coverage ~0.71; FY2024 ~0.67), which bears monitoring if the pattern persists.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.49B	8.27B	7.79B	7.24B	6.49B	5.99B
Gross Profit	5.62B	5.35B	5.39B	5.11B	4.65B	4.24B
EBITDA	803.51M	814.12M	752.14M	642.92M	702.69M	375.87M
Net Income	367.59M	352.14M	396.46M	291.72M	345.03M	111.72M
Balance Sheet
Total Assets	4.87B	4.81B	4.45B	3.98B	3.92B	3.22B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.55B	1.60B	1.35B	1.34B	705.41M
Total Debt	0.00	0.00	0.00	0.00	0.00	4.36M
Total Liabilities	1.57B	1.55B	1.50B	1.39B	1.58B	1.19B
Stockholders Equity	3.30B	3.26B	2.95B	2.59B	2.34B	2.03B
Cash Flow
Free Cash Flow	0.00	13.56M	280.35M	19.81M	653.73M	220.63M
Operating Cash Flow	0.00	681.34M	644.85M	416.64M	750.81M	307.64M
Investing Cash Flow	0.00	-806.79M	-355.67M	-366.76M	-83.03M	-62.78M
Financing Cash Flow	0.00	-43.38M	-36.30M	-43.28M	-33.35M	-64.70M

Flying Garden Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1543.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3317, the sentiment is Positive. The current price of 1543 is below the 20-day moving average (MA) of 1658.35, below the 50-day MA of 1621.02, and above the 200-day MA of 1431.41, indicating a bullish trend. The MACD of 25.61 indicates Negative momentum. The RSI at 77.08 is Negative, neither overbought nor oversold. The STOCH value of 63.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3317.

Flying Garden Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3317	76 Outperform	¥4.96B	11.96	―	0.95%	10.67%	36.51%
7581	72 Outperform	¥342.11B	29.66	9.66%	0.55%	14.33%	36.83%
8153	70 Outperform	¥131.82B	29.00	―	0.70%	5.15%	47.13%
2705	66 Neutral	¥54.82B	45.33	―	0.17%	15.53%	-26.93%
7630	66 Neutral	¥144.77B	51.22	―	1.71%	9.51%	6.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2695	58 Neutral	¥148.12B	41.16	―	0.63%	4.32%	11.78%