FOOD & LIFE COMPANIES (3563) AI Stock Analysis

• Market Cap: $913.50B
• Dividend Yield: 0.39%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 39.9
• Beta (1Y): 0.62
• Revenue Growth: 17.87%
• EPS Growth: 80.88%
• Country: JP
• Employees: 8,978
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): 54.83
• Shares Outstanding: 116,073,980
• 10 Day Avg. Volume: 1,537,720
• 30 Day Avg. Volume: 2,212,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 13.63
• 1Y Price Target: $9,000.44
• Price Target Upside: 16.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥9,425.00 ▲(21.80% Upside)

The stock's strong technical momentum and robust financial performance are the primary drivers of its score. However, high valuation metrics and debt levels are concerns that temper the overall outlook.

FOOD & LIFE COMPANIES Business Overview & Revenue Model

Company Description

FOOD & LIFE COMPANIES (3563) is a prominent player in the food service industry, primarily operating through a chain of sushi restaurants and related food service outlets. The company is renowned for its conveyor belt sushi restaurants, which have gained popularity for their unique dining experience. FOOD & LIFE COMPANIES focuses on delivering high-quality and affordable sushi, leveraging efficient logistics and supply chain management to maintain its competitive edge in the market.

How the Company Makes Money

FOOD & LIFE COMPANIES generates revenue primarily through its network of sushi restaurants. The company's revenue model is based on direct sales to customers who dine in their establishments. Key revenue streams include sales from sushi dishes, beverages, and other menu items offered at their locations. The company benefits from economies of scale due to its large number of outlets, which helps in optimizing operational costs and maximizing profit margins. Additionally, strategic partnerships with suppliers ensure a steady flow of high-quality ingredients at competitive prices, further enhancing profitability. The company's ability to attract a large customer base and maintain high customer turnover at its restaurants is a significant factor contributing to its earnings.

FOOD & LIFE COMPANIES Financial Statement Overview

Summary

The company demonstrates strong financial performance with consistent revenue growth and profitability. However, high debt levels pose a risk, and there is a slight decline in gross profit margin. Cash flow generation remains strong, supporting future growth initiatives.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	409.61B	361.13B	301.75B	281.30B	240.80B	204.96B
Gross Profit	216.57B	205.33B	167.52B	151.01B	130.23B	107.71B
EBITDA	71.47B	54.59B	37.96B	33.52B	41.52B	26.54B
Net Income	22.33B	14.63B	8.04B	3.61B	13.19B	6.46B
Balance Sheet
Total Assets	388.08B	365.15B	350.68B	331.98B	296.00B	237.26B
Cash, Cash Equivalents and Short-Term Investments	53.23B	51.63B	51.23B	50.64B	29.37B	12.66B
Total Debt	219.56B	216.88B	221.55B	214.21B	172.11B	136.36B
Total Liabilities	293.29B	287.32B	278.94B	266.85B	232.43B	186.34B
Stockholders Equity	92.34B	76.57B	71.36B	65.12B	63.57B	50.91B
Cash Flow
Free Cash Flow	37.05B	35.60B	25.65B	11.58B	18.08B	11.32B
Operating Cash Flow	61.26B	56.33B	42.36B	29.51B	31.68B	23.92B
Investing Cash Flow	-26.66B	-24.07B	-17.89B	-19.65B	-17.29B	-14.88B
Financing Cash Flow	-28.30B	-34.32B	-23.88B	10.54B	2.11B	-6.72B

FOOD & LIFE COMPANIES Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7738.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3563, the sentiment is Neutral. The current price of 7738 is below the 20-day moving average (MA) of 8287.25, below the 50-day MA of 7825.56, and above the 200-day MA of 5394.05, indicating a neutral trend. The MACD of 2.93 indicates Positive momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 8.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3563.

FOOD & LIFE COMPANIES Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3563	75 Outperform	$913.50B	39.87	27.08%	0.39%	17.87%	80.88%
9936	73 Outperform	¥228.13B	25.14		1.31%	10.74%	14.69%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
SZYCF	―	$1.70B	24.15	9.78%	―	―	―
2695	71 Outperform	¥158.03B	128.29		0.50%	4.82%	-79.12%
8153	70 Outperform	¥123.65B	35.06		0.74%	4.32%	29.02%
3387	66 Neutral	¥338.37B	57.80		0.53%	8.44%	22.79%

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.

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.