FOOD & LIFE COMPANIES (3563) AI Stock Analysis

• Market Cap: ¥983.22B
• Dividend Yield: 0.45%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 41.8
• Beta (1Y): 0.65
• 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: 0.65
• Price to Book (P/B): 8.95
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 22.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥9,404.00
• Price Target Upside: 7.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥9,191.00 ▲(5.14% 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

Consistent Revenue Growth

Sustained top-line growth indicates durable demand for the company’s restaurants and services, supporting economies of scale and reinvestment. Over multiple years this trend underpins capacity expansion, franchise strength and resilience to single-period volatility.

Strong Cash Generation

Reliable free cash flow growth and healthy operating cash conversion provide long-term funding for capex, debt repayments and strategic initiatives. This cash generation capacity supports financial flexibility and reduces reliance on external financing over cycles.

Improved Return on Equity

Elevated ROE signals effective use of shareholder capital and operational efficiency gains. Over the medium term, higher ROE supports continued reinvestment and attractive returns on growth initiatives, helping sustain shareholder value if maintained.

Negative Factors

High Leverage

A debt-to-equity ratio above 2x creates structural financial risk, raising interest and refinancing exposure. During downturns this leverage can strain cash flow, constrain strategic flexibility and increase default risk, making capital structure management critical.

Gross Margin Compression

Material decline in gross margins suggests rising input costs or competitive pricing pressure. If sustained, margin erosion will limit operating leverage benefits, reduce free cash flow potential and force either price increases or cost restructuring to restore profitability.

Low Dividend Yield

A very low dividend yield reduces appeal to income-focused investors and limits immediate cash returns. Structurally, unless payout policy changes, low yield may pressure total-return expectations and make the stock less attractive to dividend-oriented holders.

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

FOOD & LIFE COMPANIES demonstrates strong revenue growth and improving profitability, with effective cost management and operational efficiency. However, the high leverage poses a potential risk, though it is mitigated by strong cash flow generation and improved return on equity. Overall, the company is on a positive financial trajectory, but should monitor its debt levels closely.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase of 4.87% in the latest year. Gross profit margins have slightly decreased from 56.86% to 48.73%, indicating some pressure on cost management. However, net profit margins have improved to 5.34%, reflecting better profitability. The EBIT and EBITDA margins have also improved, suggesting efficient operational management.

Balance Sheet

The company has a high debt-to-equity ratio of 2.23, which indicates significant leverage and potential financial risk. However, the return on equity has improved to 19.11%, showing effective use of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow has grown by 5.94%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.76, showing healthy cash flow relative to earnings. The free cash flow to net income ratio of 0.61 reflects a solid ability to convert earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	429.57B	429.57B	361.13B	301.75B	281.30B	240.80B
Gross Profit	217.75B	209.31B	205.33B	167.52B	151.01B	130.23B
EBITDA	71.90B	72.28B	54.59B	37.96B	33.52B	41.52B
Net Income	22.94B	22.94B	14.63B	8.04B	3.61B	13.19B
Balance Sheet
Total Assets	398.60B	398.60B	365.15B	350.68B	331.98B	296.00B
Cash, Cash Equivalents and Short-Term Investments	58.82B	58.82B	51.63B	51.23B	50.64B	29.37B
Total Debt	218.66B	218.66B	216.88B	221.55B	214.21B	172.11B
Total Liabilities	297.69B	297.69B	287.32B	278.94B	266.85B	232.43B
Stockholders Equity	97.87B	97.87B	76.57B	71.36B	65.12B	63.57B
Cash Flow
Free Cash Flow	39.25B	39.25B	35.60B	25.65B	11.58B	18.08B
Operating Cash Flow	64.43B	64.43B	56.33B	42.36B	29.51B	31.68B
Investing Cash Flow	-25.44B	-25.44B	-24.07B	-17.89B	-19.65B	-17.29B
Financing Cash Flow	-29.23B	-29.23B	-34.32B	-23.88B	10.54B	2.11B

FOOD & LIFE COMPANIES Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8742.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 8742 is above the 20-day moving average (MA) of 8620.80, above the 50-day MA of 7944.62, and above the 200-day MA of 7247.89, indicating a neutral trend. The MACD of 200.34 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 34.97 is Neutral, 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
8153	70 Outperform	¥129.97B	30.95	―	0.70%	5.15%	47.13%
3563	67 Neutral	¥983.22B	41.79	25.68%	0.45%	18.95%	58.91%
7581	67 Neutral	¥306.00B	26.53	9.66%	0.55%	14.33%	36.83%
9936	66 Neutral	¥190.11B	21.20	―	1.65%	9.59%	8.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3387	59 Neutral	¥313.42B	60.38	―	0.56%	9.28%	7.59%
2695	58 Neutral	¥135.03B	37.53	―	0.63%	4.32%	11.78%

FOOD & LIFE COMPANIES Corporate Events

FOOD & LIFE COMPANIES Finalizes Terms of Performance-Linked Stock Options for Management

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 533 share acquisition rights to one internal director (excluding audit and outside directors) and 15 corporate officers, with the exercisable portion tied to position-based minimum vesting rates ranging from 16.6% to 19.6% and option values determined via Monte Carlo simulation. Monetary compensation equal to the payment required for these options will be granted to the recipients and offset against their payment obligations, effectively aligning executive and officer incentives with the company’s stock performance and reinforcing performance-based governance practices.

The most recent analyst rating on (JP:3563) stock is a Buy with a Yen8582.00 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 Finalizes Details of Broad Employee Stock Option Issuance

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 the parent company, receiving 378 units, and 791 employees at subsidiaries, receiving 857 units, with the move designed to extend equity-based incentives broadly across its workforce and strengthen alignment between employees and shareholders ahead of future business development.

The most recent analyst rating on (JP:3563) stock is a Buy with a Yen8582.00 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 Grants New Stock Options to Align Employees With Shareholder Value

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 scheme. By tying employee compensation more closely to business performance and share price, with options exercisable between December 2027 and December 2035 at an exercise price of ¥7,637 per share, the company aims to strengthen alignment between staff and shareholders, promote sustainable enhancement of corporate value, and support continued growth across its group operations.

The most recent analyst rating on (JP:3563) stock is a Hold with a Yen8241.00 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 Introduces Long-Term Stock Option Plan for Executives

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, business performance, and share price. The 28th series of share acquisition rights will total 602 units, each corresponding to 400 common shares at an exercise price of 1 yen per share, and can be exercised between January 15, 2026, and January 14, 2066, subject to tenure-based and performance-linked vesting tied to relative total shareholder return, underscoring the company’s emphasis on long-term value creation and alignment with shareholders.

The most recent analyst rating on (JP:3563) stock is a Hold with a Yen8241.00 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 Weighs Cutting Investment Unit to Boost Liquidity

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 will continue to study lowering the minimum investment amount to under ¥500,000, taking into account market conditions, its share price level, liquidity, and changes in shareholder composition, signaling a potential move to make its stock more accessible and to broaden its investor base over time.

The most recent analyst rating on (JP:3563) stock is a Hold with a Yen8241.00 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 LTD. Increases Year-End Dividend for FY25/9

FOOD & LIFE COMPANIES LTD. announced an increase in its year-end dividend for FY25/9 to 35.0 JPY per share, up from the previous 30.0 JPY. This decision reflects the company’s commitment to profit distribution and is based on its performance results, aligning with its policy of maintaining stable dividends.

The most recent analyst rating on (JP:3563) stock is a Hold with a Yen7668.00 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 Dividend Increase

FOOD & LIFE COMPANIES LTD. reported significant financial growth for the fiscal year ending September 30, 2025, with a 19% increase in revenue and a 54.4% rise in operating profit. The company also announced a dividend increase, reflecting its robust financial performance and commitment to shareholder returns.

The most recent analyst rating on (JP:3563) stock is a Hold with a Yen7668.00 price target. To see the full list of analyst forecasts on FOOD & LIFE COMPANIES stock, see the JP:3563 Stock Forecast page.