FOOD & LIFE COMPANIES LTD. (JP:3563)
:3563
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FOOD & LIFE COMPANIES
(3563)
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Rating:65Neutral
Price Target:
¥11,073.00
▲(19.63% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improved profitability and strong free cash flow, but is capped by elevated leverage and a declining gross margin trend. Technically, the stock is in an uptrend but momentum indicators are mixed, and valuation is a headwind given the high P/E and very low dividend yield.
Positive Factors
Free cash flow generation
Sustained, sizable free cash flow and double-digit FCF growth underpin the company's ability to fund reinvestment, remodel stores, and service debt without dilutive financing. Over a multi-quarter horizon, strong cash conversion supports strategic flexibility and resilience to cyclical headwinds.
Negative Factors
Elevated financial leverage
A high debt-to-equity ratio leaves the company more exposed to interest-rate moves, refinancing risk, and cyclical downturns. Elevated leverage can constrain strategic choices, force prioritization of debt servicing over investment, and amplify earnings volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained, sizable free cash flow and double-digit FCF growth underpin the company's ability to fund reinvestment, remodel stores, and service debt without dilutive financing. Over a multi-quarter horizon, strong cash conversion supports strategic flexibility and resilience to cyclical headwinds.
Read all positive factors
FOOD & LIFE COMPANIES (3563) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.26T
Dividend Yield0.45%
Average Volume (3M)1.36M
Price to Earnings (P/E)28.5
Beta (1Y)0.83
Revenue Growth23.39%
EPS Growth50.12%
CountryJP
Employees8,978
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)254.60
Shares Outstanding116,069,180
10 Day Avg. Volume1,296,550
30 Day Avg. Volume1,359,913
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)8.95
Price to Sales (P/S)2.04
P/FCF Ratio22.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥11,712.50Price Target Upside26.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)273.02
Revenue Forecast (FY)¥512.49B
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...
How the Company Makes Money
null...
FOOD & LIFE COMPANIES Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 479.94B | 429.57B | 361.13B | 301.75B | 281.30B | 240.80B |
| Gross Profit | 232.77B | 209.27B | 174.61B | 140.97B | 128.19B | 111.70B |
| EBITDA | 83.83B | 72.15B | 56.24B | 41.67B | 35.89B | 33.36B |
| Net Income | 28.86B | 22.94B | 14.63B | 8.04B | 3.61B | 13.19B |
Balance Sheet | ||||||
| Total Assets | 429.70B | 398.60B | 365.15B | 351.62B | 331.98B | 296.00B |
| Cash, Cash Equivalents and Short-Term Investments | 62.40B | 58.82B | 50.77B | 51.88B | 50.64B | 29.37B |
| Total Debt | 225.50B | 218.66B | 216.88B | 221.55B | 214.21B | 172.11B |
| Total Liabilities | 310.81B | 297.69B | 287.32B | 278.96B | 266.85B | 232.43B |
| Stockholders Equity | 114.67B | 97.87B | 76.57B | 72.27B | 65.12B | 63.57B |
Cash Flow | ||||||
| Free Cash Flow | 50.95B | 39.25B | 36.80B | 26.61B | 13.42B | 18.41B |
| Operating Cash Flow | 78.76B | 64.43B | 56.33B | 42.36B | 29.51B | 31.68B |
| Investing Cash Flow | -34.56B | -25.47B | -24.07B | -17.89B | -19.65B | -17.27B |
| Financing Cash Flow | -30.81B | -29.20B | -34.32B | -23.88B | 10.54B | 2.09B |
FOOD & LIFE COMPANIES Technical Analysis
Positive
9256.00
Price Trends
9735.00
Positive
9280.77
Positive
8456.55
Positive
Market Momentum
304.69
Negative
52.39
Neutral
37.21
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 9256 is below the 20-day moving average (MA) of 9988.55, below the 50-day MA of 9735.00, and above the 200-day MA of 8456.55, indicating a bullish trend. The MACD of 304.69 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 37.21 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥1.08T | 24.95 | 13.08% | 0.76% | 3.46% | 13.52% | |
65 Neutral | ¥1.26T | 28.47 | 25.68% | 0.45% | 23.39% | 50.12% | |
65 Neutral | ¥257.19B | 33.85 | 9.66% | 0.55% | 15.12% | 18.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥643.94B | 35.05 | 9.53% | 0.55% | 12.02% | 20.18% | |
56 Neutral | ¥1.24T | 31.37 | 15.36% | 0.78% | 11.21% | 9.99% | |
50 Neutral | ¥338.81B | -15.10 | ― | 0.24% | 3.91% | 37.05% |
* Consumer Cyclical Sector Average
JP:3563
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FOOD & LIFE COMPANIES Corporate Events
Food & Life Companies Announces 2-for-1 Stock Split and Shareholder Benefit Changes
May 8, 2026
Food Life Companies will conduct a 2-for-1 stock split effective July 1, 2026, doubling outstanding shares to 232,138,368 to lower the minimum investment and improve liquidity for investors on the Tokyo Stock Exchange. In line with the split, the...
FOOD & LIFE COMPANIES Ups Earnings Outlook and Hikes Dividend Again
May 8, 2026
FOOD LIFE COMPANIES raised its FY26/9 consolidated earnings forecast after better-than-expected performance in the first half, driven mainly by strong profit growth in its international Sushiro segment. Revenue is now projected at 505 billion yen...
FOOD & LIFE COMPANIES Outlines FY26 First-Half Results and Outlook
May 8, 2026
FOOD LIFE COMPANIES has presented its financial results briefing for the first half of fiscal year 2026, covering the period from October 1, 2025 to March 31, 2026, along with a full-year forecast. The briefing outlines consolidated financial per...
Food & Life Companies Lifts Earnings Outlook and Plans Stock Split on Strong Half-Year Results
May 8, 2026
Food Life Companies reported strong interim results for the six months to March 31, 2026, with revenue climbing 24.7% year on year to ¥254.2 billion and operating profit surging 43.7% to ¥28.1 billion, as profitability metrics including...
Food & Life Companies Secures ¥20 Billion Commitment Line for Future Growth
Mar 26, 2026
Food Life Companies has secured a new commitment line agreement with Mizuho Bank and Sumitomo Mitsui Banking Corporation, establishing access to up to JPY 20 billion in uncollateralized financing. The facility, which runs for five years from Marc...
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.