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Kourakuen Holdings Corporation
(7554)
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Rating:69Neutral
Price Target:
¥1,242.00
▲(10.40% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving financial performance, highlighted by the strong 2026 rebound in revenue/profitability and a significantly de-risked balance sheet. Technicals add support with price holding above major moving averages and neutral-to-positive momentum. Valuation is a mild headwind due to a mid-range P/E and a low dividend yield, and the recovery is tempered by still-thin margins and uneven free cash flow.
Positive Factors
Revenue and Profit Recovery
The sharp revenue rebound and return to positive operating profit and net income indicate stronger business activity and improved operating execution. If maintained, this recovery can provide a more durable earnings base over the next several quarters.
Negative Factors
Thin Profit Margins
Modest net margins leave limited protection against food, labor, rent, or utility cost inflation. The history of operating losses also suggests the current recovery may be vulnerable if sales weaken or restaurant-level costs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Recovery
The sharp revenue rebound and return to positive operating profit and net income indicate stronger business activity and improved operating execution. If maintained, this recovery can provide a more durable earnings base over the next several quarters.
Read all positive factors
Kourakuen Holdings Corporation (7554) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.69B
Dividend Yield0.88%
Average Volume (3M)53.88K
Price to Earnings (P/E)18.1
Beta (1Y)0.34
Revenue Growth42.20%
EPS GrowthN/A
CountryJP
Employees581
SectorGeneral
Sector StrengthN/A
IndustryRestaurants
Share Statistics
EPS (TTM)32.06
Shares Outstanding20,832,441
10 Day Avg. Volume46,200
30 Day Avg. Volume53,883
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)3.04
Price to Sales (P/S)0.74
P/FCF Ratio47.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kourakuen Holdings Corporation Business Overview & Revenue Model
Company Description
Kourakuen Holdings Corporation oversees a chain of restaurants throughout Japan, operating under the Korakuen brand. As of November 11, 2020, this extensive network included 456 dining establishments. The company, which was established in 1954, tr...
How the Company Makes Money
Kourakuen Holdings primarily makes money through its restaurant operations. Revenue is generated mainly from (1) sales of food and beverages to customers at company-operated restaurants (e.g., ramen, side dishes, and drinks), which is typically th...
Kourakuen Holdings Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.04B | 29.40B | 18.84B | 8.87B | 25.46B | 25.02B |
| Gross Profit | 9.85B | 19.72B | 10.11B | 1.40B | 18.41B | 17.98B |
| EBITDA | 915.68M | 2.26B | 915.99M | -383.54M | -464.39M | -747.58M |
| Net Income | 527.88M | 1.16B | 799.62M | -504.90M | -2.86B | 374.01M |
Balance Sheet | ||||||
| Total Assets | 11.15B | 13.45B | 12.54B | 9.14B | 10.80B | 14.20B |
| Cash, Cash Equivalents and Short-Term Investments | 3.53B | 4.67B | 4.72B | 1.09B | 1.29B | 1.18B |
| Total Debt | 223.38M | 1.34B | 1.79B | 4.12B | 5.65B | 5.88B |
| Total Liabilities | 5.01B | 6.26B | 6.55B | 7.29B | 9.93B | 10.59B |
| Stockholders Equity | 6.14B | 7.19B | 5.99B | 1.85B | 865.28M | 3.61B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 456.98M | 1.75B | 699.92M | -412.48M | -1.23B |
| Operating Cash Flow | 0.00 | 1.94B | 1.99B | 1.10B | 282.83M | -203.45M |
| Investing Cash Flow | 0.00 | -1.57B | 33.39M | 417.44M | 27.58M | -1.01B |
| Financing Cash Flow | 0.00 | -470.29M | 923.70M | -675.31M | -205.21M | -510.25M |
Kourakuen Holdings Corporation Technical Analysis
Positive
1125.00
Price Trends
1107.26
Positive
1107.89
Positive
1117.25
Positive
Market Momentum
4.97
Positive
56.22
Neutral
59.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7554, the sentiment is Positive. The current price of 1125 is below the 20-day moving average (MA) of 1130.50, above the 50-day MA of 1107.26, and above the 200-day MA of 1117.25, indicating a bullish trend. The MACD of 4.97 indicates Positive momentum. The RSI at 56.22 is Neutral, neither overbought nor oversold. The STOCH value of 59.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7554.
Kourakuen Holdings Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥21.69B | 18.13 | ― | ― | 42.20% | ― | |
68 Neutral | ¥173.88B | 23.92 | ― | 1.65% | 0.97% | -20.65% | |
64 Neutral | ¥244.38B | 42.63 | ― | 0.61% | 10.76% | 48.44% | |
62 Neutral | ¥58.74B | 33.93 | ― | 0.56% | 2.12% | 60.93% | |
57 Neutral | ¥104.58B | 25.82 | ― | 0.37% | 17.68% | 41.66% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥10.01B | 168.80 | ― | 0.59% | 7.12% | -67.41% |
* General Sector Average
JP:7554
Kourakuen Holdings Corporation
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Kourakuen Holdings Corporation Corporate Events
Kourakuen boosts Q1 profits and maintains upbeat full-year outlook
Aug 6, 2026
Kourakuen Corporation reported non-consolidated net sales of ¥7.59 billion for the three months ended June 30, 2026, up 9.8% year on year, with operating profit climbing 22.2% to ¥324 million and profit rising 30.3% to ¥175 million....
Kourakuen Posts Double-Digit Sales Growth at Directly Managed Stores in July
Aug 5, 2026
Kourakuen Corporation reported preliminary July sales trends for its directly managed domestic stores in the fiscal year ending March 2027, showing continued growth in both existing and total outlets. Existing stores posted year-on-year gains of 1...
Kourakuen Completes Treasury Stock Disposal for Director Restricted Share Pay
Jul 17, 2026
Kourakuen Corporation has completed the allocation procedures for the disposal of treasury stock used as restricted stock remuneration for its directors. The transaction, approved by the Board of Directors on June 18, 2026, involves 14,000 common ...
Kourakuen posts strong June sales growth at directly managed stores
Jul 3, 2026
Kourakuen Corporation reported that preliminary sales at its directly managed existing stores in Japan for June of the fiscal year ending March 2027 rose 7.9% year on year, supported by a 7.0% increase in customer numbers and a modest 0.9% rise in...
Kourakuen to Grant Treasury Shares as Restricted Stock to Directors
Jun 18, 2026
Kourakuen Corporation has approved the disposal of 14,000 treasury shares to seven internal directors as restricted stock compensation, scheduled for July 17, 2026. The shares will be granted without monetary consideration, valued using the prior ...
Kourakuen Revamps Executive Lineup After Shareholders Meeting
Jun 18, 2026
Kourakuen Corporation has approved a new executive structure following its 56th Annual General Meeting of Shareholders, with changes effective June 18, 2026. The company reaffirmed Tsutae Niida as representative director and chairman, promoted Mas...
Kourakuen Posts Double-Digit Sales Growth in May as Customer Traffic Climbs
Jun 3, 2026
Kourakuen Corporation reported strong preliminary sales trends for May 2026 at its directly managed domestic stores, with existing-store sales up 14.8% year on year, driven by a 12.9% increase in customer numbers and a modest rise in average spend...
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.