Y.S. FOOD CO., LTD. (3358) AI Stock Analysis

• Market Cap: ¥4.48B
• Dividend Yield: N/A
• Average Volume (3M): 100.20K
• Price to Earnings (P/E): 62.4
• Beta (1Y): 0.62
• Revenue Growth: 3.85%
• EPS Growth: -59.79%
• Country: JP
• Employees: 87
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.93
• Shares Outstanding: 36,157,200
• 10 Day Avg. Volume: 59,940
• 30 Day Avg. Volume: 100,200
• PEG Ratio: -2.93
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 50.02
• 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: 63 Neutral
• Price Target: ¥161.00 ▲(67.71% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is supported primarily by improving fundamentals—strong free cash flow growth and a very low leverage profile—tempered by weak profitability (thin net margin and low ROE). Technically the stock is in a strong uptrend, but extremely overbought RSI raises near-term risk. A very high P/E further limits the score due to valuation risk.

Positive Factors

Very low leverage

A debt-to-equity of 0.00 signals a virtually debt-free balance sheet, providing durable financial flexibility. This reduces interest burden, supports investment or M&A optionality, and improves resilience to demand shocks or input-cost volatility over the next several quarters.

Strong free cash flow growth

Sustained FCF growth (64.4%) and a 0.59 FCF-to-net-income ratio indicate the company is converting earnings into cash. Durable cash generation supports reinvestment, working-capital needs, and strategic initiatives without relying on external financing.

High gross profit margin

A near-50% gross margin reflects strong product mix, pricing power or scale in processing. This structural margin buffer allows the business to absorb input cost swings and supports potential margin recovery if operating efficiencies improve.

Negative Factors

Very thin net profitability

A net margin of ~1.3% and ROE near 1.1% signal persistently weak bottom-line returns. Over the medium term this limits retained earnings for growth, constrains shareholder returns, and leaves the business vulnerable to small revenue or cost shocks.

Declining operating margins

Falling EBIT/EBITDA margins point to rising operating costs or lost efficiency in converting gross profit to operating earnings. This structural erosion reduces sustainable operating cash flow and weakens the company’s ability to scale profitably.

Slow recent revenue recovery

Single-digit revenue growth (2.65%) suggests modest top-line momentum. Over 2–6 months this constrains leverage of fixed costs and limits potential margin expansion, making profitability dependent on cost improvements rather than strong sales growth.

Y.S. FOOD CO., LTD. Business Overview & Revenue Model

Company Description

Trailhead Global Holdings, Inc. operates restaurant business in Japan and internationally. It develops, manages, and franchises Chikuho Ramen Yamagoya and Basaraka through directly managed stores; as well as sells kitchen equipment for restaurants and sanitary equipment, and provides space sterilization services. The company also manufactures and sells noodles, grilled pork, soy sauce, seasonings, and other ingredients; and engages in the real estate lease business, as well as operates hot bath facilities. Y.S.Food Co.,Ltd. was incorporated in 1994 and is headquartered in Tagawa, Japan.

How the Company Makes Money

Y.S. FOOD CO., LTD. generates revenue through multiple key streams, primarily from the sale of processed food products to retailers, wholesalers, and food service providers. The company benefits from economies of scale in production, allowing it to maintain competitive pricing while maximizing margins. Additionally, Y.S. FOOD engages in partnerships with local and international distributors, enhancing its market reach and facilitating entry into new markets. The company's focus on product innovation, including the development of healthier and convenience-oriented food options, has also contributed to increased consumer demand and sales. Seasonal promotions and strategic marketing campaigns further bolster revenue during peak periods.

Y.S. FOOD CO., LTD. Financial Statement Overview

Summary

Solid balance sheet and cash flow offset weaker profitability. Debt has been reduced materially (debt-to-equity 0.00) and free cash flow growth is strong (64.40%), but net margin is low (1.26%) and ROE has fallen to 1.13%, pointing to cost/efficiency pressure.

Income Statement

Y.S. FOOD CO., LTD. has shown a positive revenue growth rate of 2.65% in the latest year, indicating a recovery from previous declines. The gross profit margin remains strong at approximately 49.39%, but the net profit margin has decreased to 1.26%, reflecting challenges in controlling costs. The EBIT and EBITDA margins have also declined, suggesting potential operational inefficiencies.

Balance Sheet

The company has significantly reduced its debt, resulting in a debt-to-equity ratio of 0.00, which indicates strong financial stability. The return on equity has decreased to 1.13%, which is a concern for profitability. The equity ratio remains healthy, indicating a solid capital structure.

Cash Flow

Y.S. FOOD CO., LTD. has demonstrated strong free cash flow growth of 64.40%, showcasing improved cash generation capabilities. The operating cash flow to net income ratio is 0.34, indicating efficient cash conversion. The free cash flow to net income ratio of 0.59 suggests effective cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.46B	1.42B	1.43B	1.29B	1.30B
Gross Profit	721.23M	719.33M	716.83M	636.29M	615.33M
EBITDA	61.58M	82.01M	105.57M	10.12M	101.41M
Net Income	18.45M	37.61M	35.60M	-83.13M	483.00K
Balance Sheet
Total Assets	2.13B	1.99B	2.59B	2.72B	2.87B
Cash, Cash Equivalents and Short-Term Investments	388.81M	211.33M	709.49M	434.31M	478.34M
Total Debt	3.39M	4.11M	591.30M	780.15M	849.95M
Total Liabilities	495.04M	486.21M	1.15B	1.33B	1.39B
Stockholders Equity	1.64B	1.50B	1.44B	1.39B	1.48B
Cash Flow
Free Cash Flow	55.80M	33.94M	44.40M	28.52M	500.00K
Operating Cash Flow	93.91M	54.03M	62.76M	61.14M	70.13M
Investing Cash Flow	-30.88M	25.54M	396.46M	-35.34M	199.14M
Financing Cash Flow	114.45M	-577.73M	-184.05M	-69.82M	123.67M

Y.S. FOOD CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.00
• 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:3358, the sentiment is Positive. The current price of 96 is below the 20-day moving average (MA) of 102.55, below the 50-day MA of 98.34, and below the 200-day MA of 96.25, indicating a bullish trend. The MACD of 6.12 indicates Negative momentum. The RSI at 62.68 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3358.

Y.S. FOOD CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3077	72 Outperform	¥3.79B	10.82	―	―	6.16%	86.76%
3358	63 Neutral	¥4.48B	62.37	―	―	3.85%	-59.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3224	60 Neutral	¥4.26B	-54.80	―	1.24%	8.52%	51.65%
9969	52 Neutral	¥4.01B	69.21	―	1.99%	-0.91%	―
3067	51 Neutral	¥4.18B	65.84	―	―	-2.70%	98.30%
2762	46 Neutral	¥3.90B	-4.38	―	―	3.26%	4.62%