Kushikatsu Tanaka Holdings Co. (3547) AI Stock Analysis

• Market Cap: ¥19.70B
• Dividend Yield: 0.75%
• Average Volume (3M): 107.07K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.55
• Revenue Growth: 25.41%
• EPS Growth: 77.18%
• Country: JP
• Employees: 521
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -10.98
• Shares Outstanding: 11,061,399
• 10 Day Avg. Volume: 69,560
• 30 Day Avg. Volume: 107,073
• PEG Ratio: 0.27
• Price to Book (P/B): 4.68
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 16.13
• 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: 60 Neutral
• Price Target: ¥2,046.00 ▼(-9.11% Downside)

The score is primarily supported by improving fundamentals (strong revenue growth, return to profitability, and better leverage), but is held back by weak technical momentum (below key moving averages with negative MACD) and a valuation that appears relatively high versus still-thin margins and a low dividend yield.

Positive Factors

Multi-year revenue growth & profitability rebound

Revenue has recovered and grown consistently: FY2025 revenue +10.31% after +19.84% (FY2024) and +28.88% (FY2023). This sustained top-line momentum and return to operating profit indicate structural demand recovery and a scalable core restaurant business that supports durable earnings improvement.

Material improvement in leverage and ROE

Leverage has fallen materially and equity has grown, producing a healthy FY2025 ROE near 18%. A stronger balance sheet lowers refinancing and liquidity risk, improves credit capacity for measured expansion, and gives management flexibility to fund growth without immediate equity raises.

Franchise model provides low-capex scaling

A meaningful franchising channel delivers recurring royalty and fee income while enabling rapid store roll-out with limited company capital. This asset-light growth route supports margin upside over time and diversifies cash flows versus solely company-owned restaurant capex dependence.

Negative Factors

Thin net margins

Net margins remain modest (~3.5%) and have compressed from earlier highs, leaving limited buffer against cost inflation or traffic declines. Low margins constrain free-cash-flow generation and reduce the firm’s ability to self-fund expansion or absorb shocks without cutting costs or raising external capital.

Volatile cash-flow conversion

Although FY2025 delivered positive free cash flow, conversion has been inconsistent and only ~59% of net income. Working-capital swings and lumpy reinvestment needs create unpredictable cash availability, complicating reliable capex, franchising support, or steady shareholder returns over the medium term.

History of elevated leverage poses re-leveraging risk

The company’s track record of higher leverage in 2020–2021 shows management can revert to greater debt if growth is pursued aggressively or profits dip. Re-leveraging would raise interest costs, constrain flexibility, and increase refinancing and covenant risks during economic stress.

Kushikatsu Tanaka Holdings Co. Business Overview & Revenue Model

Company Description

Kushikatsu Tanaka Holdings Co. engages in the management of restaurant business. The company was founded in 1998 and is based in Tokyo, Japan.

How the Company Makes Money

Kushikatsu Tanaka generates revenue primarily through the sales of food and beverages at its restaurant locations. The company operates both company-owned and franchised outlets, with franchising being a significant revenue stream as it allows for rapid expansion with lower capital investment. Moreover, franchise fees and ongoing royalties from franchisees contribute to the company’s earnings. Additionally, the company may benefit from strategic partnerships, such as collaborations with suppliers and local businesses, which can enhance its brand presence and drive customer traffic. Seasonal promotions and limited-time offerings also help in boosting sales, making it an integral part of the company's revenue strategy.

Kushikatsu Tanaka Holdings Co. Financial Statement Overview

Summary

Strong multi-year revenue growth and a clear return to profitability support the score, alongside improved leverage and solid FY2025 ROE. Offsetting factors are still-thin net margins (~3.53%) and uneven cash-flow consistency despite FY2025’s positive free cash flow rebound.

Income Statement

Revenue growth has been strong in recent years (up 10.31% in FY2025, following 19.84% in FY2024 and 28.88% in FY2023), showing continued demand recovery and expansion. Profitability has also improved versus the loss-making 2020–2021 period, with FY2025 generating positive operating profit and net income. That said, current bottom-line profitability remains modest for the sector (FY2025 net margin ~3.53%), and margins have compressed versus the unusually high FY2022 level, indicating higher costs and/or pricing pressure.

Balance Sheet

Leverage has improved materially, with debt-to-equity down to ~0.46 in FY2025 from ~0.87 in FY2024 and meaningfully lower than the highly levered 2020–2021 period. Equity has grown and the company is generating healthy returns on equity (FY2025 ROE ~18.19%), supporting balance-sheet strength. The main watch item is that the business has operated with elevated leverage in prior years, which can re-emerge if profitability softens or expansion is debt-funded.

Cash Flow

Cash generation improved sharply in FY2025, with operating cash flow of ~¥2.01B and positive free cash flow of ~¥1.19B, a clear rebound from FY2024 when free cash flow was negative. However, cash-flow performance has been volatile across years, and recent cash conversion is not consistently strong (FY2025 free cash flow is ~59% of net income), which suggests working-capital swings and/or reinvestment needs can meaningfully affect cash outcomes.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.12B	21.09B	16.86B	14.07B	10.92B	4.98B
Gross Profit	11.06B	12.28B	10.10B	8.71B	7.00B	3.00B
EBITDA	1.35B	1.42B	1.19B	1.06B	1.63B	-388.12M
Net Income	713.10M	744.59M	380.37M	357.89M	743.09M	-577.18M
Balance Sheet
Total Assets	8.46B	9.69B	7.35B	7.01B	7.60B	6.72B
Cash, Cash Equivalents and Short-Term Investments	2.28B	3.35B	1.80B	2.09B	3.12B	2.10B
Total Debt	2.34B	1.88B	2.14B	1.95B	3.00B	3.65B
Total Liabilities	5.48B	5.57B	4.86B	4.79B	5.66B	5.55B
Stockholders Equity	2.96B	4.09B	2.47B	2.21B	1.94B	1.18B
Cash Flow
Free Cash Flow	0.00	1.19B	-388.76M	342.69M	2.05B	-1.07B
Operating Cash Flow	0.00	2.01B	714.50M	860.40M	2.60B	-222.57M
Investing Cash Flow	0.00	-1.06B	-1.05B	-767.18M	-412.38M	-1.10B
Financing Cash Flow	0.00	618.48M	69.97M	-1.14B	-741.09M	-1.02B

Kushikatsu Tanaka Holdings Co. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2251.00
• 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:3547, the sentiment is Negative. The current price of 2251 is above the 20-day moving average (MA) of 1906.70, above the 50-day MA of 1992.38, and above the 200-day MA of 1927.02, indicating a bearish trend. The MACD of -54.94 indicates Positive momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 21.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3547.

Kushikatsu Tanaka Holdings Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3082	64 Neutral	¥10.16B	26.84	―	0.78%	10.30%	1.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3547	60 Neutral	¥19.70B	22.46	―	0.75%	25.41%	77.18%
3418	56 Neutral	¥11.74B	25.58	―	0.74%	6.26%	-4.84%
2764	54 Neutral	¥8.69B	-50.19	―	―	-26.12%	-110.09%
3175	52 Neutral	¥12.51B	23.82	―	―	3.90%	―
3053	44 Neutral	¥10.32B	-85.85	―	―	1.54%	-18.59%