TORIDOLL Holdings Corporation (3397) AI Stock Analysis

• Market Cap: ¥373.65B
• Dividend Yield: 0.24%
• Average Volume (3M): 340.37K
• Price to Earnings (P/E): 82.1
• Beta (1Y): 0.37
• Revenue Growth: 9.19%
• EPS Growth: 43.90%
• Country: JP
• Employees: 7,790
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 88,707,350
• 10 Day Avg. Volume: 241,710
• 30 Day Avg. Volume: 340,373
• PEG Ratio: -3.37
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 14.83
• 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: 53 Neutral
• Price Target: ¥4,342.00 ▲(2.45% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven mainly by solid growth and cash flow, offset by leverage and inconsistent net profitability. Technicals are mixed with weaker longer-term trend signals, and valuation is a meaningful headwind due to a very high P/E and minimal dividend yield.

Positive Factors

Top-line momentum (Revenue Growth)

Sustained revenue expansion (TTM +22.6% and multi-year growth 2022–2025) indicates durable consumer demand and successful store/brand execution. Persistent top-line growth supports scale economics, reinvestment in expansion, and provides revenue runway even if margins fluctuate.

Strong cash generation and free cash flow

Robust operating cash flow and substantial free cash flow provide durable internal funding for capex, new openings, and debt reduction. Healthy absolute cash generation increases strategic optionality and resilience to cyclical slumps compared with peers reliant on external financing.

Improving leverage trend and equity growth

A move from ~3.0x to ~2.1x debt-to-equity and rising equity reflect progress on capital structure. An improving leverage trend reduces refinancing vulnerability and incrementally strengthens financial flexibility, making future investments or deleveraging less disruptive.

Negative Factors

Elevated absolute debt levels

Despite improvement, high absolute debt (D/E ~2.1x) leaves the company exposed to interest rate and refinancing risk and limits freedom to pursue opportunistic investments. Heavy debt amplifies operating shocks and constrains margin compression coping ability over the medium term.

Thin and volatile net profitability

Very low and inconsistent net margins mean small profit buffers against rising labor or ingredient costs. Even with strong gross margins, volatile bottom-line conversion reduces earnings predictability, weakens ROI on new stores, and heightens sensitivity to cost shocks.

Modest returns on equity

ROE near 5.6% signals limited capital efficiency: the company generates only modest profits from its equity base. Persistently low ROE can hinder internal capital attraction and make growth funding more costly unless margins or asset turnover improve over time.

TORIDOLL Holdings Corporation Business Overview & Revenue Model

Company Description

TORIDOLL Holdings Corporation, through its subsidiaries, operates and manages restaurants in Japan and internationally. The company operates through three segments: Marugame Seimen, Overseas, and Others. It operates restaurants under the various brand names, including MARUGAME SEIMEN, TORIDOLL, Butaya Ton-Ichi, WOK TO WALK, MARUGAME UDON, BOAT NOODLE, SHORYU, Tam Jai Yunnan Mixian, Tam Jai SamGor Mixian, Pokeworks, and MONSTER CURRY. The company also operates a chain of coffee shops under the Kona's Coffee name. The company was formerly known as Toridoll.corporation and changed its name to TORIDOLL Holdings Corporation in October 2016. TORIDOLL Holdings Corporation was incorporated in 1990 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TORIDOLL Holdings Corporation generates revenue primarily through its restaurant operations, which include both company-owned and franchised locations. The company earns income from the sale of food and beverages at its various dining establishments. Key revenue streams include direct sales from menu offerings, franchise fees from partners operating TORIDOLL-branded restaurants, and royalties from franchise agreements. Additionally, TORIDOLL benefits from vertical integration by producing and supplying food products used in its restaurants, which helps improve profit margins. Strategic partnerships with suppliers and favorable lease agreements also contribute to the company’s financial performance.

TORIDOLL Holdings Corporation Financial Statement Overview

Summary

Strong revenue growth and solid operating/free cash flow are positives, but thin and volatile net margins and an elevated debt-to-equity (~2.1x) materially weaken overall financial quality.

Income Statement

Top-line momentum is strong, with revenue up 22.6% in TTM (Trailing-Twelve-Months) and a multi-year expansion from 2022–2025. Profitability is mixed: gross margin is very high in the most recent period (TTM ~75.7%), and operating profitability is positive (EBIT margin ~5.2%), but net profitability is thin (net margin ~1.7%) and has been volatile (notably much higher in 2022 and much weaker in 2025 annual). Overall, growth is a clear strength, while the key weakness is inconsistent bottom-line conversion.

Balance Sheet

Leverage is elevated for the sector, with debt-to-equity at ~2.1x in TTM (Trailing-Twelve-Months) (improved versus ~3.0x in the latest annual, but still high). Equity has grown versus earlier years, but total debt has also risen meaningfully into the most recent period. Returns on equity are modest in TTM (~5.6%), reflecting limited earnings relative to the capital base and adding sensitivity to any margin pressure. The balance sheet shows improving leverage trends, but overall debt levels remain the main risk factor.

Cash Flow

Cash generation is solid: operating cash flow is strong in TTM (Trailing-Twelve-Months) (~47.3B) and free cash flow is healthy (~32.6B) with very strong reported growth in the latest period. However, conversion indicators are only moderate, with operating cash flow covering about ~54% (per provided ratio) and free cash flow to net income at ~0.67, suggesting cash flow is good but not consistently exceptional relative to earnings. Strength is absolute cash generation; weakness is variability and only mid-range coverage ratios.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	276.94B	268.23B	231.95B	188.32B	153.35B	134.76B
Gross Profit	209.31B	203.94B	147.65B	140.50B	115.17B	100.03B
EBITDA	44.96B	41.93B	41.86B	34.26B	37.04B	14.02B
Net Income	4.16B	1.48B	5.67B	3.83B	8.98B	-5.46B
Balance Sheet
Total Assets	318.46B	323.20B	322.36B	266.24B	240.84B	209.41B
Cash, Cash Equivalents and Short-Term Investments	69.16B	82.27B	70.63B	67.46B	53.46B	24.97B
Total Debt	267.67B	221.67B	186.10B	156.58B	143.83B	143.32B
Total Liabilities	234.64B	240.52B	232.00B	188.08B	170.86B	169.47B
Stockholders Equity	83.86B	73.39B	69.98B	69.57B	62.02B	39.46B
Cash Flow
Free Cash Flow	32.56B	23.84B	33.66B	21.16B	28.15B	12.41B
Operating Cash Flow	47.28B	37.67B	42.79B	32.59B	35.12B	21.26B
Investing Cash Flow	-16.19B	-12.79B	-26.82B	-11.86B	-5.66B	-9.40B
Financing Cash Flow	-36.38B	-13.22B	-16.55B	-8.78B	-2.90B	-13.15B

TORIDOLL Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4238.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3397, the sentiment is Negative. The current price of 4238 is below the 20-day moving average (MA) of 4254.60, below the 50-day MA of 4243.72, and below the 200-day MA of 4441.67, indicating a bearish trend. The MACD of 1.38 indicates Positive momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3397.

TORIDOLL Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2702	74 Outperform	¥969.27B	28.58	13.08%	0.76%	2.73%	18.30%
8153	70 Outperform	¥131.66B	28.96	―	0.70%	5.15%	47.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7550	59 Neutral	¥1.56T	38.04	15.82%	0.78%	11.29%	-4.88%
2695	58 Neutral	¥144.55B	40.17	―	0.63%	4.32%	11.78%
3397	53 Neutral	¥373.65B	82.10	―	0.24%	9.19%	43.90%
9861	53 Neutral	¥203.38B	53.31	―	0.69%	10.75%	-14.28%

TORIDOLL Holdings Corporation Corporate Events

Toridoll Lifts Profit Nearly 45% on Improved Margins, Confirms Outlook

Toridoll Holdings Corporation, a Japan-based restaurant operator, reported solid top-line growth for the nine months ended December 31, 2025, with revenue rising 4.3% year on year to ¥210.5 billion and business profit up 13.1%. Operating profit surged 41.0%, while profit attributable to owners of the parent climbed 44.8% to ¥8.65 billion, supported by higher EBITDA and improved profitability.

The company’s financial position also strengthened, with equity attributable to owners of the parent increasing and the equity ratio improving to 30.7%. Toridoll maintained its dividend forecast, signaling confidence in earnings sustainability, and projected full-year fiscal 2026 revenue of ¥282.0 billion and a sharp rise in profit, pointing to continued margin expansion and a more robust earnings base for shareholders.

The most recent analyst rating on (JP:3397) stock is a Hold with a Yen4419.00 price target. To see the full list of analyst forecasts on TORIDOLL Holdings Corporation stock, see the JP:3397 Stock Forecast page.