Kanmonkai Co., Ltd. (3372) AI Stock Analysis

• Market Cap: ¥3.12B
• Dividend Yield: N/A
• Average Volume (3M): 11.08K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.24
• Revenue Growth: 4.50%
• EPS Growth: 11.40%
• Country: JP
• Employees: 152
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -8.39
• Shares Outstanding: 14,000,900
• 10 Day Avg. Volume: 11,190
• 30 Day Avg. Volume: 11,083
• PEG Ratio: 0.55
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 6.21
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥262.00 ▲(14.91% Upside)

Kanmonkai Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue and profit growth and improved financial stability. However, technical indicators suggest a bearish trend, and the lack of dividend yield limits income potential. The stock's low P/E ratio indicates it may be undervalued, offering potential for price appreciation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, ensuring long-term sustainability and expansion potential.

Operational Efficiency

Improved profit margins reflect enhanced operational efficiency, which can lead to better profitability and competitive advantage over time.

Cash Flow Growth

Growing free cash flow provides the company with greater financial flexibility, supporting strategic investments and resilience against market fluctuations.

Negative Factors

Substantial Liabilities

High liabilities can strain financial resources, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Debt Reliance

Dependence on debt financing can increase financial risk, limiting the company's flexibility to navigate future economic challenges or pursue strategic initiatives.

Equity Financing

While improved equity financing is positive, it may dilute existing shareholders' value and indicate potential challenges in generating sufficient internal cash flow.

Kanmonkai Co., Ltd. Business Overview & Revenue Model

Company Description

KANMONKAI Co., Ltd. develops, operates, manages, and franchises restaurants in Japan and internationally. The company operates directly managed and franchised stores under the Genpin name. It also engages in procurement of ingredients, and business development services. The company was formerly known as Sakanatei Co., Ltd. and changed its name to KANMONKAI Co., Ltd. in March 2001. KANMONKAI Co., Ltd. was founded in 1980 and is headquartered in Matsubara, Japan.

How the Company Makes Money

Kanmonkai generates revenue through multiple streams, primarily from the membership fees of its fitness and sports facilities, where customers pay for access to gyms, pools, and other amenities. Additionally, the company earns income from hosting events, workshops, and classes, which are often tailored to community needs and interests. Partnerships with local governments and organizations may also play a role in securing funding or sponsorship for specific initiatives, further contributing to its financial performance. Seasonal promotions and special events create additional revenue opportunities, while merchandise sales related to sports and wellness products can also enhance overall earnings.

Kanmonkai Co., Ltd. Financial Statement Overview

Summary

Kanmonkai Co., Ltd. exhibits strong financial health with significant revenue and profit growth, improved operational margins, and enhanced equity financing. While the company has effectively managed its debt, substantial liabilities still pose a risk. The positive cash flow trajectory supports operational and financial stability.

Income Statement

Kanmonkai Co., Ltd. has demonstrated strong revenue growth, with a consistent increase in total revenue over the years. The gross profit margin is robust, indicating effective cost management. The net profit margin improved significantly, showcasing a turnaround from past losses to profitability. The EBIT and EBITDA margins reflect growing operational efficiency.

Balance Sheet

The company has improved its financial stability with rising stockholders' equity and a decreasing debt-to-equity ratio, indicating effective debt management. However, the debt levels remain substantial, posing a potential risk. The equity ratio has improved, reflecting increased asset financing through equity.

Cash Flow

Kanmonkai Co., Ltd. has shown impressive growth in operating cash flow, supporting its operational sustainability. The free cash flow has grown, enhancing financial flexibility. The operating cash flow to net income ratio indicates strong cash earnings, though the reliance on debt financing in past years suggests potential vulnerability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.30B	5.26B	5.02B	4.21B	2.60B	2.63B
Gross Profit	3.53B	3.51B	3.27B	2.80B	1.53B	1.56B
EBITDA	405.14M	409.31M	404.99M	311.08M	131.71M	-374.83M
Net Income	370.68M	378.02M	330.84M	206.30M	600.00K	-570.23M
Balance Sheet
Total Assets	2.79B	3.32B	4.60B	4.86B	4.34B	4.42B
Cash, Cash Equivalents and Short-Term Investments	801.00M	1.40B	2.47B	2.81B	1.70B	1.40B
Total Debt	1.09B	1.43B	2.99B	3.59B	3.59B	3.59B
Total Liabilities	1.56B	2.03B	3.69B	4.29B	3.97B	4.09B
Stockholders Equity	1.23B	1.29B	910.99M	573.14M	366.64M	336.22M
Cash Flow
Free Cash Flow	0.00	485.15M	249.79M	1.10B	267.12M	-814.18M
Operating Cash Flow	0.00	604.04M	380.34M	1.14B	293.94M	-787.26M
Investing Cash Flow	0.00	332.07M	-566.86M	-22.44M	-23.03M	10.34M
Financing Cash Flow	0.00	-1.56B	-600.02M	-1.52M	25.90M	1.05B

Kanmonkai Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 228.00
• 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:3372, the sentiment is Negative. The current price of 228 is below the 20-day moving average (MA) of 233.55, below the 50-day MA of 237.22, and below the 200-day MA of 237.00, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 26.40 is Positive, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3372.

Kanmonkai Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3317	71 Outperform	¥4.28B	11.61	―	0.98%	10.67%	36.51%
3372	66 Neutral	¥3.12B	9.53	―	―	4.50%	11.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3358	57 Neutral	¥3.08B	155.92	―	―	3.85%	-59.79%
9969	52 Neutral	¥3.89B	50.99	―	1.98%	-0.91%	―
3224	50 Neutral	¥3.09B	―	―	1.66%	8.52%	51.65%
2762	46 Neutral	¥4.10B	-3.97	―	―	3.26%	4.62%