Kourakuen Holdings Corporation (7554) AI Stock Analysis

• Market Cap: ¥19.38B
• Dividend Yield: N/A
• Average Volume (3M): 42.57K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.33
• Revenue Growth: 6.19%
• EPS Growth: N/A
• Country: JP
• Employees: 510
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Restaurants
• EPS (TTM): 7.49
• Shares Outstanding: 20,832,441
• 10 Day Avg. Volume: 42,360
• 30 Day Avg. Volume: 42,566
• PEG Ratio: N/A
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.77
• 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: ¥1,100.00
• Price Target Upside: 8.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥1,092.00 ▲(7.69%Upside)

The overall stock score of 60.75 reflects strong financial recovery and stable technical indicators. The company's improved profitability and cash flow management are significant strengths, though the drop in revenue and lack of dividend yield are concerns. The valuation score indicates a fair market price, balancing the company's potential and risks.

Kourakuen Holdings Corporation Business Overview & Revenue Model

Company Description

Kourakuen Holdings Corporation, listed under the ticker 7554, is a prominent Japanese company primarily operating in the restaurant industry. It is renowned for its extensive chain of ramen restaurants, which are highly popular across Japan. The company focuses on providing high-quality, affordable ramen dishes alongside other Japanese cuisine, catering to a broad customer base seeking convenient and satisfying dining experiences.

How the Company Makes Money

Kourakuen Holdings Corporation generates its revenue mainly through the operation of its chain of ramen restaurants. The primary revenue stream is the sale of ramen dishes and other menu items to customers dining in their establishments. Additionally, the company may earn income from take-out and delivery services, which cater to the growing demand for convenient food options. Kourakuen may also engage in partnerships with suppliers to ensure cost-effective sourcing of ingredients, contributing to the company's profitability. The company leverages its brand reputation and extensive network of locations to attract a steady flow of customers, ensuring consistent revenue generation.

Kourakuen Holdings Corporation Financial Statement Overview

Summary

Kourakuen Holdings is showing signs of recovery with improved profitability and cash flow management. The positive net profit margin and the decrease in leverage are highlights, although the significant drop in revenue remains a concern.

Income Statement

Kourakuen Holdings has shown improvements in profitability with a rising net profit margin from a negative position in previous years to a positive 4.24% in the latest annual report. Despite a decline in total revenue from 2024 to 2025, the company managed to improve its EBIT margin to 13.66%, indicating better cost control. However, the revenue growth remains a concern, with a significant drop of approximately 29.7% from 2024 to 2025.

Balance Sheet

The balance sheet reflects a moderate financial structure with a debt-to-equity ratio of 0.30, showing a decrease in leverage compared to previous years. The equity ratio of 47.94% indicates substantial equity backing. However, the return on equity is relatively low at 13.34%, limiting shareholder value creation. The improvement in equity position is a positive sign of strengthening financial health.

Cash Flow

The cash flow statements indicate a robust free cash flow growth rate of 153.78% from 2024 to 2025, coupled with a healthy operating cash flow to net income ratio of 2.49. The company has improved its cash flow from operations, which supports its operational stability. However, the historical volatility in free cash flow raises concerns about the sustainability of these improvements.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.84B	26.80B	25.46B	25.02B	26.57B
Gross Profit	10.11B	18.96B	18.41B	17.98B	18.91B
EBITDA	1.69B	1.09B	-591.95M	2.76B	-127.43M
Net Income	799.62M	94.26M	-2.86B	374.01M	-841.68M
Balance Sheet
Total Assets	12.49B	10.47B	10.80B	14.14B	17.20B
Cash, Cash Equivalents and Short-Term Investments	4.72B	2.13B	1.29B	1.18B	2.91B
Total Debt	1.79B	4.30B	5.65B	5.88B	6.32B
Total Liabilities	6.50B	8.76B	9.93B	10.54B	14.03B
Stockholders Equity	5.99B	1.70B	865.28M	3.61B	3.16B
Cash Flow
Free Cash Flow	1.75B	689.08M	-412.80M	-1.28B	83.53M
Operating Cash Flow	1.99B	1.10B	282.83M	-203.45M	797.10M
Investing Cash Flow	33.39M	417.44M	27.58M	-1.01B	-550.66M
Financing Cash Flow	923.70M	-675.31M	-205.21M	-510.25M	1.02B

Kourakuen Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1014.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7554, the sentiment is Negative. The current price of 1014 is below the 20-day moving average (MA) of 1021.20, below the 50-day MA of 1025.58, and below the 200-day MA of 1101.94, indicating a bearish trend. The MACD of -4.17 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 42.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7554.

Kourakuen Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7562	70 Outperform	¥16.91B	28.67		0.41%	0.31%	-41.46%
3329	68 Neutral	¥16.95B	23.52		0.95%	3.48%	2.31%
3075	67 Neutral	¥21.23B	30.17		0.77%	5.86%	-23.12%
7621	67 Neutral	¥20.17B	147.25		0.42%	1.03%	-84.27%
Sector *	61 Neutral	C$5.24B	8.14	20.23%	3.75%	3.11%	8.11%
7554	61 Neutral	¥19.38B	18.60		―	6.19%	―
2694	52 Neutral	¥16.90B	44.38		0.69%	3.14%	-359.89%

Kourakuen Holdings Corporation Corporate Events

Kourakuen Corporation Reports June 2025 Sales Trends

Kourakuen Corporation reported preliminary sales trends for June 2025, indicating a year-on-year increase in sales and customer numbers for its directly managed stores. However, the average customer spending showed a slight decrease compared to the previous year. The company has slightly reduced the number of stores compared to the previous fiscal year, which may impact its market presence.

Kourakuen Holdings Announces New Board Members

Kourakuen Holdings Corporation has announced a new management structure following its 55th Annual General Meeting of Shareholders. The reappointments and promotions within the board are expected to strengthen the company’s leadership, potentially impacting its strategic direction and operational efficiency.

Kourakuen Holdings Reports Strong May Sales Growth

Kourakuen Holdings Corporation reported preliminary sales trends for May 2025, indicating a year-over-year sales increase of 111.4% for directly managed existing stores. Despite a slight decrease in average customer spending, the number of customers increased by 112.6%, reflecting a positive trend in customer visits. The company maintained the number of stores at 342, suggesting stability in its operations. These figures highlight a robust performance in the domestic market, potentially strengthening Kourakuen’s industry positioning and signaling positive implications for stakeholders.

Kourakuen Corporation Adopts New Medium-Term Management Plan

Kourakuen Corporation, a company listed on the Tokyo Stock Exchange Prime Market, has announced the adoption of a medium-term management plan spanning three years from fiscal year 2026 to 2028. This strategic plan, approved by the Board of Directors, aims to guide the company’s growth and operations over the specified period, potentially impacting its market positioning and stakeholder interests.

Kourakuen Corporation Reports Impairment Loss in Q4

Kourakuen Corporation announced an impairment loss of 256 million yen recorded as an extraordinary loss in the fourth quarter of the fiscal year ending March 31, 2025. This financial adjustment reflects the company’s reassessment of the recoverability of certain fixed assets, impacting its financial results for the year.

Kourakuen Corporation Announces Director Changes

Kourakuen Corporation has announced changes in its board of directors, with the appointment of Masahiro Hoshino as a new outside director. This decision, made at the board meeting on May 12, 2025, will be finalized at the upcoming Ordinary General Meeting of Shareholders on June 19, 2025. The changes in the directorate are part of the company’s ongoing efforts to strengthen its governance and strategic direction.

Kourakuen Corporation Reports April Sales Growth Amid Store Reduction

Kourakuen Corporation reported preliminary sales trends for April 2025, indicating a year-over-year sales increase of 112.1% for directly managed existing stores. The number of customers also rose by 111.3%, while average customer spending increased by 0.8%. However, the total number of stores decreased from 362 to 346, reflecting a 95.6% change. These figures suggest a positive growth trend in customer base and sales, despite a reduction in the number of operational stores, which may impact the company’s market positioning and operational strategy.