FOOD & LIFE COMPANIES (3563) AI Stock Analysis

• Market Cap: $880.88B
• Dividend Yield: 0.39%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 44.8
• Beta (1Y): 0.66
• Revenue Growth: 16.30%
• EPS Growth: 69.81%
• Country: JP
• Employees: 8,978
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Restaurants
• EPS (TTM): 50.73
• Shares Outstanding: 116,073,980
• 10 Day Avg. Volume: 1,443,420
• 30 Day Avg. Volume: 1,639,826
• PEG Ratio: 3.96
• Price to Book (P/B): 9.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.69
• 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: $7,785.22
• Price Target Upside: 2.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: ¥8,200.00 ▲(8.05%Upside)

FOOD & LIFE COMPANIES scores well on financial performance due to robust revenue growth and cash flow generation, despite high leverage. Technical analysis reflects strong bullish trends, though overbought indicators suggest caution. Valuation suggests potential overvaluation, impacting the overall score.

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

FOOD & LIFE COMPANIES displays strong financial performance with impressive revenue growth and operational efficiency. The income statement reflects strong margins, though net profit margin suggests potential for improvement. The balance sheet indicates significant leverage which could pose risks, but robust cash flow generation supports future growth and debt servicing.

Income Statement

FOOD & LIFE COMPANIES demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) total revenue of ¥388,954 billion, up from ¥361,129 billion the previous year. Gross profit margin remains healthy at 55.2%, and the net profit margin improved to 4.9% in the TTM. Notably, EBIT and EBITDA margins have shown consistent growth, reflecting operational efficiency. However, the net profit margin remains relatively modest, suggesting room for improvement in cost management.

Balance Sheet

The company's balance sheet shows a solid equity position with a stockholders' equity of ¥85,584 billion, although the debt-to-equity ratio is relatively high at 2.53, indicating significant leverage. The equity ratio stands at 22.9%, which is moderate, highlighting a balanced approach to financing. While the return on equity has improved to 22.5%, the high leverage could pose risks if earnings volatility arises.

Cash Flow

FOOD & LIFE COMPANIES has demonstrated a positive cash flow trajectory, with a free cash flow of ¥30,973 billion, recovering from ¥35,600 billion the previous year. The operating cash flow to net income ratio is robust at 2.8, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 1.6 reinforces the company's ability to generate surplus cash, supporting future growth initiatives and debt servicing.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	361.13B	301.75B	281.30B	240.80B	204.96B
Gross Profit	205.33B	167.52B	151.01B	130.23B	107.71B
EBITDA	54.59B	37.96B	33.52B	41.52B	26.54B
Net Income	14.63B	8.04B	3.61B	13.19B	6.46B
Balance Sheet
Total Assets	365.15B	350.68B	331.98B	296.00B	237.26B
Cash, Cash Equivalents and Short-Term Investments	51.63B	51.23B	51.09B	29.81B	12.96B
Total Debt	216.88B	221.55B	214.21B	172.11B	136.36B
Total Liabilities	287.32B	278.94B	266.85B	232.43B	186.34B
Stockholders Equity	76.57B	71.36B	65.12B	63.57B	50.91B
Cash Flow
Free Cash Flow	35.60B	25.65B	11.58B	18.08B	11.32B
Operating Cash Flow	56.33B	42.36B	29.51B	31.68B	23.92B
Investing Cash Flow	-24.07B	-17.89B	-19.65B	-17.29B	-14.88B
Financing Cash Flow	-34.32B	-23.88B	10.54B	2.11B	-6.72B

FOOD & LIFE COMPANIES Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7589.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 7589 is above the 20-day moving average (MA) of 7352.00, above the 50-day MA of 6900.90, and above the 200-day MA of 4666.37, indicating a bullish trend. The MACD of 158.18 indicates Positive momentum. The RSI at 60.40 is Neutral, neither overbought nor oversold. The STOCH value of 93.09 is Negative, 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
3563	76 Outperform	$880.88B	44.75	23.28%	0.39%	16.30%	69.81%
7581	74 Outperform	¥261.59B	24.46	9.78%	0.47%	16.42%	39.76%
2695	71 Outperform	¥165.37B	134.42		0.48%	4.82%	-79.12%
8153	70 Outperform	¥120.56B	38.30		0.79%	3.36%	22.37%
3387	68 Neutral	¥331.62B	57.00		0.51%	8.44%	22.79%
Sector *	67 Neutral	¥266.96B	13.51	6.51%	2.53%	5.16%	-13.66%
9936	67 Neutral	¥231.45B	25.24		1.36%	10.74%	14.69%

FOOD & LIFE COMPANIES Corporate Events

FOOD & LIFE COMPANIES Enhances Shareholder Benefits Program

FOOD & LIFE COMPANIES LTD. announced changes to its shareholder benefits program, aiming to increase convenience and environmental friendliness. The new program allows gift coupons to be used in increments of 1 yen and introduces a barcode system for easier redemption, enhancing shareholder engagement and potentially improving investment attractiveness.

FOOD & LIFE COMPANIES Boosts Earnings and Dividend Forecasts Amid Strong Sushiro Performance

FOOD & LIFE COMPANIES LTD. has revised its earnings and dividend forecasts for the fiscal year ending September 30, 2025, reflecting a positive outlook driven by strong performance in its domestic and international Sushiro businesses. Despite anticipated challenges such as rising raw material and labor costs, the company expects significant improvements in revenue and profits, leading to an increased year-end dividend per share, aligning with its policy of returning profits to shareholders.

FOOD & LIFE COMPANIES Reports Robust Financial Growth and Positive Outlook

FOOD & LIFE COMPANIES LTD. reported significant financial growth for the six months ending March 31, 2025, with a 15.8% increase in revenue and a 58.9% rise in operating profit compared to the previous year. The company also revised its earnings forecasts for the fiscal year ending September 30, 2025, indicating a positive outlook with expected revenue growth of 15.2% and a 39% increase in operating profit, reflecting strong market positioning and potential benefits for stakeholders.