FOOD & LIFE COMPANIES (3563) AI Stock Analysis

• Market Cap: $869.36B
• Dividend Yield: 0.46%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.66
• Revenue Growth: 18.95%
• EPS Growth: 58.91%
• Country: JP
• Employees: 8,978
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 42.97
• Shares Outstanding: 116,069,180
• 10 Day Avg. Volume: 1,296,550
• 30 Day Avg. Volume: 1,359,913
• PEG Ratio: 0.27
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 9.28
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 13.63
• 1Y Price Target: $7,997.20
• Price Target Upside: 4.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥8,241.00 ▲(7.30% Upside)

FOOD & LIFE COMPANIES shows strong financial performance with improving profitability and effective cost management. However, high leverage and a relatively high P/E ratio pose risks. The technical indicators suggest short-term bullish momentum, but caution is advised due to overbought signals. The low dividend yield limits income potential for dividend-focused investors.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a robust market position and effective strategies in expanding its customer base and product offerings.

Cash Generation

Strong cash generation supports reinvestment in business operations and provides a buffer against economic downturns, enhancing financial resilience.

Operational Efficiency

Improved margins indicate effective cost management and operational efficiency, which can lead to sustained profitability and competitive advantage.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility in capital allocation, potentially impacting long-term growth and stability.

Gross Margin Pressure

Decreasing gross margins suggest rising costs or pricing pressures, which could erode profitability if not managed effectively.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially affecting stock attractiveness and investor base diversification.

FOOD & LIFE COMPANIES Business Overview & Revenue Model

Company Description

Food & Life Companies Ltd. operates a chain of Sushi restaurants. As of September 30, 2021, it operated 610 restaurants in domestic Sushiro; 39 restaurants in Sugidama; 154 restaurants in Kyotaru; 106 in Kaisen-Misakiko; 59 restaurants in overseas Sushiro brand; and 31 restaurants in other areas. The company was formerly known as Sushiro Global Holdings Ltd. and changed its name to Food & Life Companies Ltd. in April 2021. Food & Life Companies Ltd. was founded in 1975 and is headquartered in Suita, Japan.

How the Company Makes Money

FOOD & LIFE COMPANIES generates revenue through multiple key streams, primarily from the sale of its food products in both domestic and international markets. The company leverages a strong distribution network that includes partnerships with major retailers, wholesalers, and e-commerce platforms to reach a wide customer base. Additionally, the company invests in marketing strategies to enhance brand visibility and consumer engagement. Significant partnerships with suppliers enable cost-effective sourcing of raw materials, further contributing to profitability. Moreover, FOOD & LIFE COMPANIES may also explore opportunities in private label products and collaborations with food service providers, expanding its revenue potential.

FOOD & LIFE COMPANIES Financial Statement Overview

Summary

The company demonstrates strong financial performance with consistent revenue growth and profitability. Despite high debt levels, effective equity management and strong cash flow generation support future growth. Focus on cost management and leverage reduction is advised.

Income Statement

The company exhibits strong revenue growth with a 5.31% increase in TTM, supported by healthy gross and net profit margins of 55.20% and 4.94% respectively. The EBIT and EBITDA margins also show improvement, indicating efficient operational management. However, the slight decline in gross profit margin compared to the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.53, which is a concern for financial stability. However, the company has improved its return on equity to 24.17%, indicating effective use of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 19.62%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.70, reflecting efficient cash management. However, the free cash flow to net income ratio has slightly decreased, suggesting increased capital expenditures or other cash outflows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	409.61B	429.57B	361.13B	301.75B	281.30B	240.80B
Gross Profit	216.57B	209.31B	205.33B	167.52B	151.01B	130.23B
EBITDA	71.47B	72.28B	54.59B	37.96B	33.52B	41.52B
Net Income	22.33B	22.94B	14.63B	8.04B	3.61B	13.19B
Balance Sheet
Total Assets	388.08B	398.60B	365.15B	350.68B	331.98B	296.00B
Cash, Cash Equivalents and Short-Term Investments	53.23B	58.82B	51.63B	51.23B	50.64B	29.37B
Total Debt	219.56B	218.66B	216.88B	221.55B	214.21B	172.11B
Total Liabilities	293.29B	297.69B	287.32B	278.94B	266.85B	232.43B
Stockholders Equity	92.34B	97.87B	76.57B	71.36B	65.12B	63.57B
Cash Flow
Free Cash Flow	37.05B	39.25B	35.60B	25.65B	11.58B	18.08B
Operating Cash Flow	61.26B	64.43B	56.33B	42.36B	29.51B	31.68B
Investing Cash Flow	-26.66B	-25.44B	-24.07B	-17.89B	-19.65B	-17.29B
Financing Cash Flow	-28.30B	-29.23B	-34.32B	-23.88B	10.54B	2.11B

FOOD & LIFE COMPANIES Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7680.00
• 50DMA: Positive
• 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:3563, the sentiment is Positive. The current price of 7680 is above the 20-day moving average (MA) of 7338.95, above the 50-day MA of 7319.52, and above the 200-day MA of 6649.95, indicating a bullish trend. The MACD of 78.84 indicates Negative momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 28.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8153	70 Outperform	¥130.58B	31.10	―	0.71%	5.15%	47.13%
9936	69 Neutral	¥192.83B	21.79	―	1.64%	9.59%	8.08%
3563	67 Neutral	$869.36B	36.95	25.68%	0.46%	18.95%	58.91%
7581	67 Neutral	¥259.15B	23.35	9.66%	0.56%	14.33%	36.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2695	58 Neutral	¥124.72B	34.66	―	0.62%	4.32%	11.78%
3387	58 Neutral	¥321.88B	57.28	―	0.56%	9.28%	7.59%

FOOD & LIFE COMPANIES Corporate Events

FOOD & LIFE COMPANIES Revises FY25 Earnings Forecast Upwards

FOOD & LIFE COMPANIES LTD. has revised its earnings forecast for the fiscal year ending September 30, 2025, showing an increase in expected revenue and profit due to strong performance in its sushi business segments. Despite anticipating rising costs in raw materials and labor, the company has raised its full-year consolidated earnings forecast based on robust results up to the third quarter.

The most recent analyst rating on (JP:3563) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on FOOD & LIFE COMPANIES stock, see the JP:3563 Stock Forecast page.

FOOD & LIFE COMPANIES Reports Strong Financial Growth and Revises Forecasts

FOOD & LIFE COMPANIES LTD. reported significant growth in its financial results for the nine months ended June 30, 2025, with a notable increase in revenue and operating profit compared to the previous year. The company also revised its earnings forecasts for the fiscal year ending September 30, 2025, indicating positive expectations for continued growth.

The most recent analyst rating on (JP:3563) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on FOOD & LIFE COMPANIES stock, see the JP:3563 Stock Forecast page.