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KFC,Ltd. (JP:3420)
:3420
Japanese Market
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KFC,Ltd. (3420) AI Stock Analysis

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JP:3420

KFC,Ltd.

(3420)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥1,639.00
▲(1.17% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial stability (low leverage) but tempered by weaker profitability trends and uneven cash flow. Valuation is attractive (low P/E and solid yield), while technical indicators point to soft/negative momentum, limiting the overall score.
Positive Factors
Very low leverage / strong balance sheet
Sustained ultra-low debt (D/E ~2–3%) provides durable financial flexibility: it lowers refinancing and interest-rate sensitivity, preserves borrowing capacity for capex or M&A, supports dividend policy through downturns, and reduces insolvency risk over the medium term.
Negative Factors
Volatile cash generation and negative FCF in 2024–2025
Intermittent negative free cash flow and swings across 2023–2025 highlight execution and working-capital risks. Persistent volatility impairs reliable funding for capex, dividends or expansion, forcing potential trade-offs or external financing during stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Sustained ultra-low debt (D/E ~2–3%) provides durable financial flexibility: it lowers refinancing and interest-rate sensitivity, preserves borrowing capacity for capex or M&A, supports dividend policy through downturns, and reduces insolvency risk over the medium term.
Read all positive factors

KFC,Ltd. (3420) vs. iShares MSCI Japan ETF (EWJ)

KFC,Ltd. Business Overview & Revenue Model

Company Description
Established in Osaka, Japan, in 1965, KFC, Ltd. operates primarily in the development, manufacturing, and distribution of construction materials and related services throughout Japan. The company's diverse product range includes foundational faste...
How the Company Makes Money
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KFC,Ltd. Financial Statement Overview

Summary
Balance sheet strength is a major positive (very low leverage and growing equity), but operating performance has softened from 2021–2022 peaks and cash flow has been volatile with negative periods in 2024–2025 despite improvement in 2026.
Income Statement
55
Neutral
Balance Sheet
86
Very Positive
Cash Flow
42
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue25.55B26.07B25.07B22.63B25.96B
Gross Profit6.39B6.82B6.87B6.16B7.48B
EBITDA1.35B1.76B1.96B1.76B2.79B
Net Income1.04B997.44M1.18B1.05B1.84B
Balance Sheet
Total Assets29.96B28.84B29.62B26.19B26.21B
Cash, Cash Equivalents and Short-Term Investments5.15B4.80B5.56B5.99B3.73B
Total Debt864.92M500.87M496.89M501.03M505.23M
Total Liabilities7.80B7.59B9.00B6.63B7.05B
Stockholders Equity22.16B21.25B20.62B19.56B19.14B
Cash Flow
Free Cash Flow478.22M-240.47M-152.66M3.09B616.67M
Operating Cash Flow592.81M-85.46M3.51M3.75B1.04B
Investing Cash Flow79.46M-429.00M-263.90M-958.12M-1.02B
Financing Cash Flow-120.79M-446.25M-371.54M-520.90M-693.60M

KFC,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1620.00
Price Trends
50DMA
1555.56
Positive
100DMA
1548.24
Positive
200DMA
1536.87
Positive
Market Momentum
MACD
9.29
Positive
RSI
59.36
Neutral
STOCH
30.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3420, the sentiment is Positive. The current price of 1620 is above the 20-day moving average (MA) of 1606.60, above the 50-day MA of 1555.56, and above the 200-day MA of 1536.87, indicating a bullish trend. The MACD of 9.29 indicates Positive momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 30.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3420.

KFC,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥658.80B12.259.33%1.70%0.49%15.11%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥11.76B11.264.01%-2.01%4.68%
62
Neutral
¥1.12T13.757.27%2.01%6.77%21.90%
62
Neutral
¥145.76B25.131.21%2.46%13.53%
58
Neutral
¥469.33B11.099.84%2.62%9.72%3.53%
44
Neutral
¥917.76B21.531.05%-41.04%-82.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3420
KFC,Ltd.
1,638.00
58.16
3.68%
JP:9042
Hankyu Hanshin Holdings
4,605.00
335.79
7.87%
JP:9041
Kintetsu Group Holdings Co
3,500.00
588.96
20.23%
JP:9008
Keio
754.40
32.28
4.47%
JP:9010
Fuji Kyuko Co., Ltd.
2,750.00
677.18
32.67%
JP:9024
Seibu Holdings, Inc.
3,341.00
-1,690.35
-33.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 15, 2026