KFC,Ltd. (3420) AI Stock Analysis

• Market Cap: ¥11.56B
• Dividend Yield: 3.18%
• Average Volume (3M): 3.23K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.35
• Revenue Growth: 3.06%
• EPS Growth: 5.71%
• Country: JP
• Employees: 312
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.93
• Shares Outstanding: 7,378,050
• 10 Day Avg. Volume: 3,900
• 30 Day Avg. Volume: 3,230
• PEG Ratio: -0.65
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -40.92
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,726.00 ▲(11.57% Upside)

The overall stock score is primarily influenced by solid financial performance and attractive valuation metrics. Despite recent revenue and cash flow challenges, the company's low P/E ratio and healthy dividend yield suggest potential value. Technical analysis indicates weak momentum, which tempers the overall score.

Positive Factors

Strong Profitability

The company's ability to maintain strong profitability amidst revenue pressures indicates robust operational efficiency and cost management.

Effective Equity Management

Effective use of equity capital suggests that the company is leveraging its resources well to generate returns, supporting long-term shareholder value.

Robust Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Negative Factors

Declining Revenue

Negative revenue growth suggests market challenges that could impact long-term competitiveness and require strategic adjustments to regain growth momentum.

Cash Flow Challenges

Inconsistent cash flow generation may limit the company's ability to fund operations and growth initiatives, necessitating improved cash management strategies.

Revenue Volatility

Revenue volatility can indicate underlying market or operational issues, posing risks to predictable financial performance and strategic planning.

KFC,Ltd. Business Overview & Revenue Model

Company Description

KFC, Ltd. (3420) is a leading fast-food restaurant chain known for its fried chicken and other poultry products. Founded in 1952, KFC operates in the quick-service restaurant sector and is part of the Yum! Brands portfolio. The company offers a diverse menu that includes chicken pieces, sandwiches, sides, and desserts, catering to a wide range of tastes and preferences across various markets globally.

How the Company Makes Money

KFC generates revenue primarily through the sale of its food and beverage products in its restaurants. The company's revenue model relies on both company-owned and franchised locations, with a significant portion of its income coming from franchise fees and royalties. KFC also benefits from strategic partnerships, including collaborations with delivery services and promotional tie-ins with popular brands, which help to enhance customer reach and drive sales. Additionally, seasonal promotions and menu innovations contribute to increased customer traffic and higher average transaction values, further bolstering the company's earnings.

KFC,Ltd. Financial Statement Overview

Summary

KFC, Ltd. demonstrates solid financial health with strong profitability and effective equity management. However, recent declines in revenue and cash flow generation pose challenges. The company's ability to maintain profitability amidst revenue pressures is notable, yet attention to cash flow efficiency is necessary for sustained growth.

Income Statement

KFC,Ltd. shows a volatile revenue trend with recent declines, yet maintains strong gross and net profit margins. The recent annual revenue growth was negative, indicating potential market challenges. Despite this, the company sustains a competitive EBIT margin, signaling operational efficiency.

Balance Sheet

The company exhibits a robust balance sheet with a low debt-to-equity ratio, reflecting prudent leverage management. The equity ratio is healthy, supporting financial stability. Return on equity has shown some fluctuations but remains moderately strong, indicating effective use of equity capital.

Cash Flow

Free cash flow has been inconsistent, with a recent decline indicating cash generation challenges. The operating cash flow to net income ratio is concerning, showing inefficiencies in converting income to cash. However, the company has managed its capital expenditures prudently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.54B	26.07B	25.07B	22.63B	25.96B	27.80B
Gross Profit	7.30B	6.82B	6.87B	6.16B	7.48B	8.13B
EBITDA	2.10B	1.76B	1.96B	1.76B	2.79B	3.58B
Net Income	1.20B	997.44M	1.18B	1.05B	1.84B	2.31B
Balance Sheet
Total Assets	28.26B	28.84B	29.62B	26.19B	26.21B	26.56B
Cash, Cash Equivalents and Short-Term Investments	4.74B	4.80B	5.56B	5.99B	3.73B	4.38B
Total Debt	907.90M	500.87M	496.89M	501.03M	505.23M	601.72M
Total Liabilities	7.33B	7.59B	9.00B	6.63B	7.05B	8.45B
Stockholders Equity	20.93B	21.25B	20.62B	19.56B	19.14B	18.10B
Cash Flow
Free Cash Flow	0.00	-240.47M	-152.66M	3.09B	616.67M	376.62M
Operating Cash Flow	0.00	-85.46M	3.51M	3.75B	1.04B	583.97M
Investing Cash Flow	0.00	-429.00M	-263.90M	-958.12M	-1.02B	-465.91M
Financing Cash Flow	0.00	-446.25M	-371.54M	-520.90M	-693.60M	-612.16M

KFC,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1547.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3420, the sentiment is Negative. The current price of 1547 is below the 20-day moving average (MA) of 1563.05, below the 50-day MA of 1609.46, and above the 200-day MA of 1479.74, indicating a neutral trend. The MACD of -16.02 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 60.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3420.

KFC,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7795	73 Outperform	¥8.65B	7.27	―	4.00%	6.83%	41.94%
6554	72 Outperform	¥10.18B	11.86	―	3.99%	13.59%	52.99%
7670	71 Outperform	¥9.91B	5.49	―	4.50%	-5.07%	13.98%
3420	67 Neutral	¥11.56B	9.59	―	3.18%	3.06%	5.71%
5721	65 Neutral	¥22.80B	340.68	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7490	62 Neutral	¥8.68B	13.85	―	2.13%	3.47%	1062.58%