CHIKARANOMOTO HOLDINGS Co (3561) AI Stock Analysis

• Market Cap: ¥45.34B
• Dividend Yield: 1.37%
• Average Volume (3M): 77.28K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.77
• Revenue Growth: 4.01%
• EPS Growth: 3.32%
• Country: JP
• Employees: 581
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 18.81
• Shares Outstanding: 30,318,000
• 10 Day Avg. Volume: 105,930
• 30 Day Avg. Volume: 77,283
• PEG Ratio: -1.19
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 23.12
• 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): 62.8
• Revenue Forecast (FY): ¥37.20B

• Rating: 66 Neutral
• Price Target: ¥1,662.00 ▲(14.54% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Chikaranomoto Holdings' overall stock score is driven primarily by its strong financial performance, characterized by revenue growth and improved cash flow management. However, technical indicators suggest bearish momentum, and the valuation is moderate, which tempers the overall score.

Positive Factors

Revenue Growth

Sustained top-line growth from ¥19.4bn to ¥34.2bn over five years shows durable demand for the company's restaurant concepts and scale gains. This long-term revenue expansion supports reinvestment, franchise rollouts, and absorption of fixed costs, bolstering structural competitiveness.

Free Cash Flow Generation

A move to consistently positive free cash flow reflects strong operating cash conversion and disciplined working capital. Durable FCF improves funding for expansion, reduces reliance on external financing, and enables maintenance capex and franchise support without eroding shareholder capital over months to years.

Recognized Brand & Franchise Model

Owning the IPPUDO brand and a franchising model provides recurring fee streams and international growth optionality. Brand recognition supports customer loyalty and franchisee interest, creating a structural advantage for scalable unit growth and diversified geographic revenue over the medium term.

Negative Factors

Operating Profitability Pressure

A falling EBIT margin signals rising operating cost pressure or weaker operating leverage despite revenue gains. If structural (e.g., higher input, labor, or operating mix shifts), it can erode earnings resilience and limit the company's ability to convert revenue growth into durable profit improvements.

Material Liabilities Remain

Although equity and debt ratios improved, meaningful remaining liabilities constrain financial flexibility. In a capital-intensive restaurant model, elevated liabilities increase refinancing and liquidity risk, reducing buffer against downturns and limiting capacity for opportunistic investment over the coming months.

Modest EPS Growth

EPS growth near 2.3% is modest relative to revenue expansion, suggesting limited per-share earnings improvement. Persistently slow EPS gains may reflect dilution, margin pressure, or incremental costs of growth and can reduce shareholder return potential absent sustained margin recovery or faster profit leverage.

CHIKARANOMOTO HOLDINGS Co Business Overview & Revenue Model

Company Description

Chikaranomoto Holdings Co.,Ltd. operates restaurants in Japan. North America, Europe, rest of Asia, and Oceania. It operates restaurants under the Ippudo, IPPUDO RAMEN EXPRESS, Nashimatei, and Inaba Udon brand names. The company manufactures and sells noodles; and soups, soup stock, and seasonings; and operates brewery. It operates through a network of 277 stores. The company was founded in 1979 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

CHIKARANOMOTO HOLDINGS generates revenue through multiple key streams, including the sale of processed food products and beverages, which are distributed to supermarkets, restaurants, and food service providers. The company also engages in strategic partnerships with retailers and food distributors, enhancing its market reach and distribution efficiency. Additionally, CHIKARANOMOTO may earn income through brand licensing and collaborations with other food brands, leveraging its reputation for quality to expand its product offerings. The emphasis on sustainability may attract environmentally conscious consumers, potentially increasing sales and market share.

CHIKARANOMOTO HOLDINGS Co Financial Statement Overview

Summary

Chikaranomoto Holdings displays solid financial performance with strong revenue growth, improved profitability, and enhanced balance sheet strength. The company has effectively managed its cash flows, transitioning to positive free cash flow. However, attention should be paid to the operating profitability and debt management to sustain long-term growth.

Income Statement

Chikaranomoto Holdings has shown strong revenue growth, with a notable increase from 19.4 billion to 34.2 billion over five years. Gross and net profit margins have also improved, highlighting effective cost management and operational efficiency. However, the decline in EBIT margin from 2024 to 2025 indicates potential pressure on operating profitability.

Balance Sheet

The company's financial position has strengthened, with a reduction in total debt and an increase in stockholders' equity, leading to an improved debt-to-equity ratio. The equity ratio has increased, reflecting enhanced financial stability. However, the company still maintains a significant level of liabilities, which could pose risks if not managed carefully.

Cash Flow

Chikaranomoto Holdings demonstrates robust cash flow management, with consistent operating cash flow and improving free cash flow over the years. The company has successfully transitioned from negative to positive free cash flow, supporting growth and investment opportunities. The strong free cash flow to net income ratio underscores efficient cash utilization.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.50B	34.17B	31.78B	26.12B	19.40B	16.54B
Gross Profit	24.20B	23.99B	22.41B	18.37B	13.74B	11.47B
EBITDA	3.46B	3.63B	4.03B	2.86B	1.91B	-1.42B
Net Income	1.95B	1.76B	2.19B	1.63B	923.75M	-2.39B
Balance Sheet
Total Assets	18.20B	18.54B	17.23B	17.48B	15.27B	15.67B
Cash, Cash Equivalents and Short-Term Investments	6.73B	7.15B	5.92B	6.74B	4.77B	3.97B
Total Debt	2.32B	2.61B	2.72B	5.44B	7.38B	9.15B
Total Liabilities	7.34B	7.88B	7.96B	9.84B	11.47B	14.36B
Stockholders Equity	10.86B	10.66B	9.27B	7.64B	3.80B	1.31B
Cash Flow
Free Cash Flow	0.00	1.80B	2.74B	1.99B	799.58M	-1.71B
Operating Cash Flow	0.00	3.08B	3.93B	2.85B	1.70B	-651.76M
Investing Cash Flow	0.00	-1.59B	-2.41B	-968.00M	-923.11M	-1.25B
Financing Cash Flow	0.00	-828.96M	-3.56B	-71.85M	-167.19M	2.05B

CHIKARANOMOTO HOLDINGS Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1451.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3561, the sentiment is Positive. The current price of 1451 is below the 20-day moving average (MA) of 1501.95, below the 50-day MA of 1452.94, and above the 200-day MA of 1420.09, indicating a bullish trend. The MACD of 23.60 indicates Positive momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3561.

CHIKARANOMOTO HOLDINGS Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9828	72 Outperform	¥52.26B	11.26	―	2.41%	6.49%	4.27%
2705	66 Neutral	¥54.39B	45.33	―	0.17%	15.53%	-26.93%
3561	66 Neutral	¥45.34B	24.01	18.06%	1.37%	4.01%	3.32%
7554	65 Neutral	¥23.06B	23.61	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8200	59 Neutral	¥57.26B	53.91	―	0.56%	7.52%	3.37%
3196	46 Neutral	¥41.86B	102.38	―	0.62%	13.05%	-29.04%

CHIKARANOMOTO HOLDINGS Co Corporate Events

Chikaranomoto Outlines FY2025-26 Results and Multi-Year Growth Vision

Chikaranomoto Holdings has released materials for its FY2025-26 third-quarter financial results briefing, outlining recent performance and its current financial standing. The presentation also previews the company’s full-year FY2025-26 financial plan and a vision for FY2027-28, indicating a structured medium-term roadmap that may shape operational priorities and strategic growth initiatives.

The disclosure of both near-term plans and longer-term vision suggests management is aiming to communicate stability and direction to investors amid a competitive food service landscape. By framing its outlook around high-density BRIX ramen and laying out a multi-year vision, the company appears to be reinforcing its brand focus while signaling efforts to enhance visibility and confidence among stakeholders.

The most recent analyst rating on (JP:3561) stock is a Hold with a Yen1534.00 price target. To see the full list of analyst forecasts on CHIKARANOMOTO HOLDINGS Co stock, see the JP:3561 Stock Forecast page.

Chikaranomoto Posts Higher Q3 Sales but Lower Operating Profit, Keeps Full-Year Outlook

Chikaranomoto Holdings reported consolidated revenue of ¥26.89 billion for the nine months ended December 31, 2025, up 5.9% year on year, while operating income fell 17.2% to ¥1.71 billion and ordinary income declined 10.8%, with net income attributable to the company rising 10% to ¥1.57 billion. The company’s financial position strengthened as total assets increased to ¥19.90 billion and equity ratio improved to 58.4%, and it maintained its dividend policy with a planned annual payout of ¥20 per share, while keeping its full-year forecast unchanged and projecting 9.1% revenue growth and a 24.4% rise in net income, signaling confidence in earnings recovery despite recent margin pressure.

The group also reported modest growth in earnings per share to ¥52.31 for the third quarter period, reflecting improved profitability per share despite lower operating margins. Stable capital structure, no major changes in consolidation scope or accounting policies, and continued share-based employee and board incentive programs indicate management’s focus on shareholder returns and governance as it pursues steady expansion in the restaurant market.

The most recent analyst rating on (JP:3561) stock is a Hold with a Yen1534.00 price target. To see the full list of analyst forecasts on CHIKARANOMOTO HOLDINGS Co stock, see the JP:3561 Stock Forecast page.