Towa Food Service Co., Ltd. (3329) AI Stock Analysis

• Market Cap: ¥16.66B
• Dividend Yield: 0.98%
• Average Volume (3M): 5.35K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.11
• Revenue Growth: 3.41%
• EPS Growth: 7.67%
• Country: JP
• Employees: 205
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 18.47
• Shares Outstanding: 8,186,400
• 10 Day Avg. Volume: 5,020
• 30 Day Avg. Volume: 5,346
• PEG Ratio: 9.82
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 35.21
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥2,171.00 ▲(5.90% Upside)

The overall stock score is primarily influenced by strong financial performance, despite low net profit margins and cash flow concerns. Technical analysis indicates bearish momentum, which negatively impacts the score. Valuation is moderate, with a reasonable P/E ratio but low dividend yield.

Towa Food Service Co., Ltd. Business Overview & Revenue Model

Company Description

Towa Food Service Co., Ltd. operates a chain of cafes and restaurants in Japan. The company was founded in 1974 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Towa Food Service generates revenue through a multi-faceted business model that includes direct sales of food products, distribution services, and strategic partnerships with local and international suppliers. The company’s key revenue streams are derived from the sale of processed food items, ingredients for food preparation, and catering services. Additionally, Towa Food Service benefits from long-term contracts with institutional clients, which provide a stable source of income. The company continuously seeks to enhance its profitability by investing in product development and expanding its market reach, as well as leveraging partnerships that allow for more efficient supply chain management and cost reductions.

Towa Food Service Co., Ltd. Financial Statement Overview

Summary

Towa Food Service Co., Ltd. shows strong revenue growth and a solid balance sheet with minimal leverage. However, the net profit margin is relatively low, and there are concerns about cash flow conversion.

Income Statement

Towa Food Service Co., Ltd. has demonstrated strong revenue growth, particularly in the last two years, with a significant increase of 71.3% in the most recent year. The company maintains a high gross profit margin of over 73%, indicating efficient cost management. However, the net profit margin is relatively low at 5.62%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company exhibits a strong balance sheet with a very low debt-to-equity ratio of 0.0018, indicating minimal leverage and financial risk. The return on equity is solid at 10.05%, showcasing effective use of shareholder funds. The equity ratio is high, suggesting a stable financial structure with significant equity backing.

Cash Flow

Cash flow analysis shows a robust operating cash flow, although there was a decline in free cash flow growth in the latest year. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio indicates that not all earnings are translating into free cash flow, which could be a concern for cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.72B	12.81B	12.38B	10.85B	8.25B	7.03B
Gross Profit	9.28B	9.37B	9.02B	7.86B	5.82B	4.93B
EBITDA	1.35B	1.39B	1.38B	991.18M	1.53B	378.38M
Net Income	733.60M	720.70M	704.40M	425.78M	698.95M	-61.10M
Balance Sheet
Total Assets	8.71B	9.17B	8.72B	8.44B	8.52B	7.11B
Cash, Cash Equivalents and Short-Term Investments	3.90B	4.36B	4.02B	3.82B	3.70B	2.08B
Total Debt	14.00M	13.25M	18.18M	605.46M	604.49M	609.35M
Total Liabilities	1.78B	2.00B	2.10B	2.43B	2.84B	2.08B
Stockholders Equity	6.93B	7.17B	6.62B	6.02B	5.68B	5.04B
Cash Flow
Free Cash Flow	0.00	477.12M	975.35M	232.25M	1.76B	-163.37M
Operating Cash Flow	0.00	943.56M	1.32B	645.73M	1.86B	-69.89M
Investing Cash Flow	0.00	-735.92M	-401.37M	-832.69M	-1.47B	193.32M
Financing Cash Flow	0.00	-166.32M	-723.29M	-91.10M	-65.38M	35.56M

Towa Food Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2050.00
• 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:3329, the sentiment is Negative. The current price of 2050 is below the 20-day moving average (MA) of 2103.78, below the 50-day MA of 2110.57, and below the 200-day MA of 2084.92, indicating a bearish trend. The MACD of -15.88 indicates Positive momentum. The RSI at 29.11 is Positive, neither overbought nor oversold. The STOCH value of 9.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3329.

Towa Food Service Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3329	61 Neutral	¥16.66B	22.79	―	0.98%	3.41%	7.67%
7562	59 Neutral	¥16.68B	47.00	―	0.41%	0.18%	-63.97%
3075	58 Neutral	¥20.80B	29.54	―	0.78%	5.86%	-23.12%
3068	54 Neutral	¥18.99B	119.48	―	0.57%	1.45%	-87.10%
7554	54 Neutral	¥19.70B	18.83	―	―	―	―
2694	45 Neutral	¥16.44B	-23.36	―	0.71%	3.35%	-512.36%