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FOOD & LIFE COMPANIES LTD. (JP:3563)
:3563
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FOOD & LIFE COMPANIES (3563) AI Stock Analysis

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JP:3563

FOOD & LIFE COMPANIES

(3563)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥6,521.00
▲(20.14% Upside)
Action:Upgraded
Date:08/11/26
The score is driven primarily by improving fundamentals and cash flow growth alongside clear bullish technical momentum. These positives are tempered by a leveraged balance sheet and a demanding valuation (high P/E with a low dividend yield), which increases sensitivity to any slowdown or margin pressure.
Positive Factors
Revenue and profitability improvement
Multi-year revenue growth to TTM 506.8B alongside net margin expansion to 6.2% and EBIT margin 9.7% signals durable scale gains and improving unit economics. Sustained top-line and margin progress strengthens long-term earnings power and funds reinvestment and margin defense over months.
Negative Factors
High absolute debt level
Nominal debt of ~228B TTM remains high despite lower D/E, creating refinancing and interest-rate exposure. High absolute leverage can constrain strategic choices, increase fixed costs, and heighten vulnerability if margins or cash flow deteriorate over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profitability improvement
Multi-year revenue growth to TTM 506.8B alongside net margin expansion to 6.2% and EBIT margin 9.7% signals durable scale gains and improving unit economics. Sustained top-line and margin progress strengthens long-term earnings power and funds reinvestment and margin defense over months.
Read all positive factors

FOOD & LIFE COMPANIES (3563) vs. iShares MSCI Japan ETF (EWJ)

FOOD & LIFE COMPANIES Business Overview & Revenue Model

Company Description
Food & Life Companies Ltd. is a major operator of sushi restaurant chains. By September 30, 2021, its expansive portfolio encompassed 610 domestic Sushiro locations, 39 Sugidama restaurants, 154 Kyotaru eateries, 106 Kaisen-Misakiko outlets, and 5...

FOOD & LIFE COMPANIES Financial Statement Overview

Summary
Strong multi-year revenue growth and improving profitability (TTM revenue 506.8B; net margin 6.2%; EBIT margin 9.7%) supported by rising operating and free cash flow (TTM OCF 81.5B; TTM FCF 51.3B). The main constraint is moderate financial risk from leverage: while D/E has improved to 1.83x (TTM), absolute debt is still high and rising (228.1B TTM) and cash conversion remains below net income (OCF/NI 0.84 TTM).
Income Statement
79
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue506.85B429.57B361.13B301.75B281.30B240.80B
Gross Profit246.51B209.27B174.61B140.97B128.19B111.70B
EBITDA90.96B72.27B54.59B37.96B31.47B40.98B
Net Income31.44B22.94B14.63B8.04B3.61B13.19B
Balance Sheet
Total Assets445.69B398.60B365.15B351.62B331.98B296.00B
Cash, Cash Equivalents and Short-Term Investments64.46B58.82B50.77B51.88B50.64B29.37B
Total Debt228.14B218.66B216.88B221.55B214.21B172.11B
Total Liabilities316.22B297.69B287.32B278.96B266.85B232.43B
Stockholders Equity124.58B97.87B76.57B72.27B65.12B63.57B
Cash Flow
Free Cash Flow51.30B39.25B36.80B26.61B13.42B18.41B
Operating Cash Flow81.51B64.43B56.33B42.36B29.51B31.68B
Investing Cash Flow-40.60B-25.47B-24.07B-17.89B-19.65B-17.27B
Financing Cash Flow-31.87B-29.20B-34.32B-23.88B10.54B2.09B

FOOD & LIFE COMPANIES Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5428.00
Price Trends
50DMA
5147.09
Positive
100DMA
5025.95
Positive
200DMA
4557.43
Positive
Market Momentum
MACD
207.33
Negative
RSI
64.57
Neutral
STOCH
60.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3563, the sentiment is Positive. The current price of 5428 is below the 20-day moving average (MA) of 5544.70, above the 50-day MA of 5147.09, and above the 200-day MA of 4557.43, indicating a bullish trend. The MACD of 207.33 indicates Negative momentum. The RSI at 64.57 is Neutral, neither overbought nor oversold. The STOCH value of 60.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3563.

FOOD & LIFE COMPANIES Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥1.07T28.6413.54%0.71%2.34%8.58%
70
Outperform
¥1.29T42.7828.19%0.32%23.74%40.37%
67
Neutral
¥384.08B31.229.75%0.55%16.06%12.26%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥719.59B41.219.69%0.78%12.02%20.18%
60
Neutral
¥1.65T36.0515.79%0.78%11.88%45.16%
50
Neutral
¥368.19B160.970.24%3.91%37.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3563
FOOD & LIFE COMPANIES
5,928.00
1,927.55
48.18%
JP:2702
Mcdonalds Holdings Company Japan
7,920.00
1,297.29
19.59%
JP:3197
Skylark Holdings Co
3,245.00
299.46
10.17%
JP:7581
Saizeriya Co
7,680.00
2,338.92
43.79%
JP:7550
Zensho Holdings Co
11,595.00
2,249.78
24.07%
JP:3397
TORIDOLL Holdings Corporation
4,261.00
-277.53
-6.11%

FOOD & LIFE COMPANIES Corporate Events

FOOD & LIFE COMPANIES Lifts FY26/9 Profit Forecast on Strong Sushiro Performance
Aug 7, 2026
FOOD LIFE COMPANIES has maintained its FY26/9 revenue forecast at 505 billion yen but raised profit guidance across all levels following stronger-than-expected performance, particularly from its International Sushiro segment. Adjusted EBITDA is n...
Food & Life to Sell KYOTARU to SRS Holdings, Refocus on Sushiro Core
Aug 7, 2026
Food Life Companies will transfer all shares of its specified subsidiary KYOTARU to SRS Holdings, exiting ownership of the well-known takeout and revolving-lane sushi operator it acquired in 2021. Management says the move will allow KYOTARU to pu...
Food & Life Companies Lifts Profit Outlook on Strong Sushiro Growth
Aug 7, 2026
Food Life Companies reported strong third-quarter results for fiscal 2026, with both its international and Japan Sushiro operations exceeding internal plans and showing solid expansion. The company continues to deepen its presence in the conveyor...
Food & Life Companies Lifts Earnings Forecast After Strong Nine-Month Results
Aug 7, 2026
Food Life Companies reported strong consolidated results for the nine months ended June 30, 2026, with revenue rising 24.7% year on year to ¥390.4 billion and operating profit jumping 43.9% to ¥42.0 billion. Profit attributable to owner...
FOOD & LIFE COMPANIES Forms Marine Resources Joint Venture with Kyoritsu
May 27, 2026
FOOD LIFE COMPANIES LTD. will establish a new joint venture, FOOD LIFE KYORITSU MARINE LTD., with KYORITSU Co., ltd. to support aquaculture production and enhance the stable use of marine resources. The venture, based in Mishima, Shizuoka and ca...
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: Aug 11, 2026