CHIKARANOMOTO HOLDINGS Co (3561) AI Stock Analysis

• Market Cap: ¥46.49B
• Dividend Yield: 1.37%
• Average Volume (3M): 77.28K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.72
• 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: ¥1,660.00 ▲(14.40% 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

Sustained Revenue Growth

Meaningful multi-year revenue expansion indicates durable demand for the company's restaurant concepts and successful geographic or channel expansion. This scale helps absorb fixed costs, enables investment in brand/IPPUDO growth, and supports longer-term margin improvement and reinvestment capacity.

Positive Free Cash Flow

A structural shift to positive free cash flow strengthens the firm's ability to fund openings, franchise support, and product development from operations rather than external financing. Consistent FCF reduces refinancing risk and enables disciplined capital allocation over the medium term.

Improved Balance Sheet Metrics

Lower leverage and a higher equity ratio enhance financial resilience versus prior periods, providing capacity to withstand restaurant-sector cyclicality. Improved solvency also lowers interest burden and preserves strategic flexibility for M&A, franchising support, or weathering downturns.

Negative Factors

Remaining Liabilities

Despite improved ratios, material outstanding liabilities can constrain cash available for growth and raise vulnerability to shocks. In the restaurant industry, obligations (rent, lease liabilities, supplier terms) can become binding during traffic or margin pressure, limiting nimble reinvestment.

Recent EBIT Margin Decline

A drop in operating margin signals rising operating costs or mix shifts that could erode sustainable profitability. If structural (higher rents, labor, input costs or lower store productivity), this trend can weaken free cash flow durability and require either price increases or efficiency investments to restore margins.

Moderate Earnings Momentum

Modest top-line and EPS growth rates imply slower earnings acceleration than peers expanding aggressively. In a capital‑intensive restaurant model, tepid EPS growth can limit ability to self-fund rapid expansion and may require careful prioritization of openings, franchising, or margin improvement initiatives to sustain medium-term competitiveness.

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

The company primarily makes money by selling food and beverages through ramen restaurant operations. Revenue is generated from company-owned stores (directly operated restaurants), where sales are recognized from dine-in and other customer transactions. It also earns income from franchising its restaurant brands, which typically includes initial franchise fees and ongoing royalties based on franchisee sales (specific terms vary by contract; if details are not publicly available, they are not stated here). In addition, the company generates revenue from other related food-business activities linked to its brands and restaurant operations (e.g., product development or other ancillary food-related services), but a precise breakdown of these streams is null if not disclosed in the source information.

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	18.75B	17.42B	17.66B	15.64B	15.88B
Cash, Cash Equivalents and Short-Term Investments	6.73B	7.90B	6.72B	6.74B	4.77B	3.97B
Total Debt	2.32B	2.61B	2.72B	5.44B	7.38B	9.15B
Total Liabilities	7.34B	8.09B	8.15B	10.02B	11.84B	14.56B
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: Negative
• RSI: Neutral
• STOCH: Negative

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 1511.45, below the 50-day MA of 1481.22, and above the 200-day MA of 1431.01, indicating a bullish trend. The MACD of 15.87 indicates Negative momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 92.08 is Negative, 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
2705	66 Neutral	¥50.32B	39.57	―	0.17%	15.53%	-26.93%
3561	66 Neutral	¥46.49B	18.76	17.09%	1.37%	4.01%	3.32%
7554	65 Neutral	¥22.43B	20.09	―	―	―	―
9828	64 Neutral	¥51.64B	11.04	―	2.41%	6.49%	4.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8200	59 Neutral	¥57.41B	52.27	―	0.56%	7.52%	3.37%
3196	46 Neutral	¥42.83B	76.37	―	0.62%	13.05%	-29.04%

CHIKARANOMOTO HOLDINGS Co Corporate Events

Chikaranomoto Holdings to Book ¥300 Million Dividend From Subsidiary

Chikaranomoto Holdings Co., Ltd. has resolved at its board meeting on March 16, 2026 to receive a ¥300 million surplus dividend from its consolidated subsidiary, Chikaranomoto Co., Ltd. The dividend is scheduled to be received on March 30, 2026, reflecting internal capital flows within the group.

The company will recognize this ¥300 million dividend as operating revenue in its non-consolidated financial statements for the fiscal year ending March 2026. However, because the payment comes from a consolidated subsidiary, management expects no impact on the group’s consolidated financial results for the same fiscal year.

The most recent analyst rating on (JP:3561) stock is a Hold with a Yen1661.00 price target. To see the full list of analyst forecasts on CHIKARANOMOTO HOLDINGS Co stock, see the JP:3561 Stock Forecast page.

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.