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

• Market Cap: ¥16.95B
• Dividend Yield: 0.95%
• Average Volume (3M): 2.68K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.09
• Revenue Growth: 3.48%
• EPS Growth: 2.31%
• Country: JP
• Employees: 205
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 8,186,400
• 10 Day Avg. Volume: 1,430
• 30 Day Avg. Volume: 2,680
• PEG Ratio: -0.75
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.54
• 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: ¥2,260.00
• Price Target Upside: 7.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥2,260.00 ▲(7.57%Upside)

Towa Food Service Co., Ltd. scores well in financial performance due to strong profitability and a robust balance sheet, but cash flow management needs improvement. Technical analysis suggests a neutral market position, while valuation metrics indicate moderate attractiveness. The absence of recent earnings call data and corporate events means these factors are not affecting the score.

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

Company Description

Towa Food Service Co., Ltd. (3329) is a Japan-based company primarily engaged in the food service industry. The company operates a range of restaurants, including yakiniku (grilled meat) establishments, and specializes in offering high-quality dining experiences with a focus on Japanese cuisine. Towa Food Service Co., Ltd. is recognized for its commitment to sourcing premium ingredients and delivering excellent customer service across its various restaurant brands.

How the Company Makes Money

Towa Food Service Co., Ltd. generates revenue primarily through its network of restaurants. The company makes money by selling food and beverages to customers who dine in their establishments. Key revenue streams include sales from its yakiniku restaurants, which are popular for offering a variety of meat dishes cooked at the table by the customers themselves. Additionally, Towa Food Service Co., Ltd. benefits from its strategic location of restaurants in busy urban areas, attracting a steady flow of customers. The company may also engage in promotional activities and partnerships to enhance its market presence and drive sales, although specific partnerships are not detailed.

Towa Food Service Co., Ltd. Financial Statement Overview

Summary

Towa Food Service Co., Ltd. demonstrates strong profitability and financial stability with solid revenue growth and efficient operations. The balance sheet shows minimal leverage and high equity ratios. However, cash flow volatility and the absence of recent free cash flow data are concerns that could be improved upon.

Income Statement

Towa Food Service Co., Ltd. has shown strong income statement results. The TTM gross profit margin is approximately 72.95%, and the net profit margin is around 5.76%, indicating healthy profitability despite the restaurant industry's challenges. Revenue growth from the previous period was about 2.74%, which shows steady upward momentum. EBIT and EBITDA margins are also strong at approximately 8.44% and 10.59%, respectively, indicating efficient cost management and robust operational performance.

Balance Sheet

The company demonstrates a solid balance sheet with a very low debt-to-equity ratio of approximately 0.002, indicating minimal leverage. The return on equity is strong at around 10.58%, reflecting efficient use of equity to generate profits. An impressive equity ratio of approximately 79.55% suggests financial stability. However, the high equity ratio also indicates potential under-leveraging, which could be optimized for greater growth.

Cash Flow

Cash flow metrics present a mixed view. While the operating cash flow to net income ratio is not available for the TTM, previous periods show healthy cash generation. The absence of free cash flow figures in the TTM is concerning, as it limits the assessment of cash available for growth and debt reduction. Historical free cash flow growth appears volatile, requiring attention to cash management strategies.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	12.72B	12.38B	10.85B	8.25B	7.03B	10.23B
Gross Profit	9.28B	9.02B	7.86B	5.82B	4.93B	7.41B
EBITDA	1.35B	1.38B	991.18M	1.53B	378.38M	532.70M
Net Income	733.60M	704.40M	425.78M	698.95M	-61.10M	-23.00M
Balance Sheet
Total Assets	8.71B	8.72B	8.44B	8.52B	7.11B	6.76B
Cash, Cash Equivalents and Short-Term Investments	3.90B	4.02B	3.82B	3.70B	2.08B	1.42B
Total Debt	14.00M	18.18M	605.46M	604.49M	609.35M	509.00M
Total Liabilities	1.78B	2.10B	2.43B	2.84B	2.08B	1.61B
Stockholders Equity	6.93B	6.62B	6.02B	5.68B	5.04B	5.15B
Cash Flow
Free Cash Flow	0.00	975.35M	232.25M	1.76B	-163.37M	-110.00M
Operating Cash Flow	0.00	1.32B	645.73M	1.86B	-69.89M	436.00M
Investing Cash Flow	0.00	-401.37M	-832.69M	-1.47B	193.32M	-528.00M
Financing Cash Flow	0.00	-723.29M	-91.10M	-65.38M	35.56M	207.00M

Towa Food Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2101.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3329, the sentiment is Positive. The current price of 2101 is above the 20-day moving average (MA) of 2095.10, above the 50-day MA of 2088.72, and above the 200-day MA of 2065.46, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 50.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7562	70 Outperform	¥16.91B	28.67		0.41%	0.31%	-41.46%
3329	68 Neutral	¥16.95B	23.52		0.95%	3.48%	2.31%
3075	67 Neutral	¥21.23B	30.17		0.78%	5.86%	-23.12%
7554	61 Neutral	¥19.38B	18.60		―	6.19%	―
3068	60 Neutral	¥19.03B	20.20		0.57%	3.24%	-11.39%
Sector *	57 Neutral	HK$26.15B	4.16	-2.03%	5.83%	-0.24%	-68.05%
2694	52 Neutral	¥16.90B	44.38		0.69%	3.14%	-359.89%