FOOD & LIFE COMPANIES LTD. (JP:3563)
:3563
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FOOD & LIFE COMPANIES
(3563)
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Rating:66Neutral
Price Target:
¥10,199.00
▲(6.37% Upside)
Action:DowngradedDate:02/08/26
The score is driven primarily by improving financial performance and solid cash generation, tempered by balance-sheet leverage. Technicals are a meaningful positive with strong uptrend and momentum, but the overall score is held back by expensive valuation (high P/E and low dividend yield).
Positive Factors
Strong free cash flow generation
Consistent and growing free cash flow (~¥44.9B, +14.5%) with conversion near 63% provides durable internal funding for store reinvestment, capex and deleveraging. This strengthens long-term liquidity and strategic optionality versus reliance on external financing.
Negative Factors
Elevated financial leverage
Leverage at ~3.3x equity materially increases interest and refinancing sensitivity, reducing flexibility for M&A or downturns. Persistent high debt levels heighten solvency risk and could force defensive actions if cash flow weakens or rates rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent and growing free cash flow (~¥44.9B, +14.5%) with conversion near 63% provides durable internal funding for store reinvestment, capex and deleveraging. This strengthens long-term liquidity and strategic optionality versus reliance on external financing.
Read all positive factors
FOOD & LIFE COMPANIES (3563) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.11T
Dividend Yield0.45%
Average Volume (3M)1.36M
Price to Earnings (P/E)26.2
Beta (1Y)0.82
Revenue Growth18.95%
EPS Growth58.91%
CountryJP
Employees8,978
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)75.42
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
¥10,742.57Price Target Upside12.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)254.75
Revenue Forecast (FY)¥502.45B
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
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 majo...
FOOD & LIFE COMPANIES Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
54
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 453.09B | 429.57B | 361.13B | 301.75B | 281.30B | 240.80B |
| Gross Profit | 220.59B | 209.27B | 174.61B | 140.97B | 128.19B | 111.70B |
| EBITDA | 77.69B | 72.15B | 56.24B | 41.67B | 35.89B | 33.36B |
| Net Income | 25.35B | 22.94B | 14.63B | 8.04B | 3.61B | 13.19B |
Balance Sheet | ||||||
| Total Assets | 414.65B | 398.60B | 365.15B | 351.62B | 331.98B | 296.00B |
| Cash, Cash Equivalents and Short-Term Investments | 56.35B | 58.82B | 50.77B | 51.88B | 50.64B | 29.37B |
| Total Debt | 224.19B | 218.66B | 216.88B | 221.55B | 214.21B | 172.11B |
| Total Liabilities | 306.24B | 297.69B | 287.32B | 278.96B | 266.85B | 232.43B |
| Stockholders Equity | 104.61B | 97.87B | 76.57B | 72.27B | 65.12B | 63.57B |
Cash Flow | ||||||
| Free Cash Flow | 44.93B | 39.25B | 36.80B | 26.61B | 13.42B | 18.41B |
| Operating Cash Flow | 71.04B | 64.43B | 56.33B | 42.36B | 29.51B | 31.68B |
| Investing Cash Flow | -28.18B | -25.47B | -24.07B | -17.89B | -19.65B | -17.27B |
| Financing Cash Flow | -30.25B | -29.20B | -34.32B | -23.88B | 10.54B | 2.09B |
FOOD & LIFE COMPANIES Technical Analysis
Positive
9588.00
Price Trends
9391.56
Positive
8598.50
Positive
8084.35
Positive
Market Momentum
42.00
Positive
51.00
Neutral
47.86
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 9588 is below the 20-day moving average (MA) of 9621.45, above the 50-day MA of 9391.56, and above the 200-day MA of 8084.35, indicating a neutral trend. The MACD of 42.00 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 47.86 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 | ¥1.10T | 25.06 | 13.08% | 0.76% | 2.73% | 18.30% | |
66 Neutral | ¥1.11T | 26.23 | 25.68% | 0.45% | 18.95% | 58.91% | |
65 Neutral | ¥273.30B | 33.85 | 9.66% | 0.55% | 14.33% | 36.83% | |
63 Neutral | ¥735.06B | 45.71 | 9.53% | 0.55% | 15.58% | 60.90% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥1.39T | 28.68 | 15.36% | 0.78% | 11.29% | -4.88% | |
53 Neutral | ¥377.21B | 34.66 | ― | 0.24% | 9.19% | 43.90% |
* Consumer Cyclical Sector Average
JP:3563
FOOD & LIFE COMPANIES
9,588.00
4,850.20
102.37%
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FOOD & LIFE COMPANIES Corporate Events
FOOD & LIFE COMPANIES Delivers Strong Q1 FY2026 Results and Confirms Double‑Digit Growth Outlook
Feb 6, 2026
FOOD LIFE COMPANIES reported strong consolidated results for the three months ended December 31, 2025, with revenue rising 23.7% year on year to ¥122.7 billion and operating profit jumping 40.5%, while profit attributable to owners of the pa...
FOOD & LIFE COMPANIES Finalizes Terms of Performance-Linked Stock Options for Management
Jan 15, 2026
FOOD LIFE COMPANIES has finalized the specific terms of a new stock option plan that provides share-linked remuneration with stock price conditions for its management, following an earlier board resolution in December 2025. The company will issue...
FOOD & LIFE COMPANIES Finalizes Details of Broad Employee Stock Option Issuance
Jan 14, 2026
FOOD LIFE COMPANIES LTD. has finalized the key details of an employee stock option program previously approved by its board, determining that it will issue 1,235 share acquisition rights in total. The options will be allocated to 219 employees at...
FOOD & LIFE COMPANIES Grants New Stock Options to Align Employees With Shareholder Value
Dec 23, 2025
FOOD LIFE COMPANIES has approved the 29th issuance of share acquisition rights as stock options for 1,237 units, to be allotted to 1,017 employees across the parent company and its subsidiaries, as a medium‑ to long‑term incentive sch...
FOOD & LIFE COMPANIES Introduces Long-Term Stock Option Plan for Executives
Dec 23, 2025
FOOD LIFE COMPANIES has approved the issuance of stock options with stock price conditions as a new share-linked remuneration scheme for one internal director and 15 corporate officers, aiming to strengthen the link between executive compensation...
FOOD & LIFE COMPANIES Weighs Cutting Investment Unit to Boost Liquidity
Dec 23, 2025
FOOD LIFE COMPANIES has stated that it views a reduction in its investment unit as an effective way to invigorate trading in its shares by attracting more investors, particularly individuals, and enhancing share liquidity. The company says it wil...
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.