Kourakuen Holdings Corporation (7554) AI Stock Analysis

• Market Cap: ¥19.55B
• Dividend Yield: N/A
• Average Volume (3M): 43.09K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.34
• Revenue Growth: 6.19%
• EPS Growth: N/A
• Country: JP
• Employees: 510
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): 7.49
• Shares Outstanding: 20,832,441
• 10 Day Avg. Volume: 42,290
• 30 Day Avg. Volume: 43,086
• PEG Ratio: <0.01
• Price to Book (P/B): 18.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -37.91
• 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: 7.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥1,092.00 ▲(6.74%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 (7554) is a prominent player in the Japanese food service industry, primarily known for its extensive chain of ramen restaurants. The company specializes in providing affordable and high-quality ramen dishes to a broad customer base across Japan. Kourakuen Holdings Corporation operates a network of restaurants under the Kourakuen brand, focusing on delivering traditional Japanese ramen with a modern twist, catering to both local tastes and international visitors.

How the Company Makes Money

Kourakuen Holdings Corporation generates revenue primarily through its restaurant operations, with a significant portion of income derived from sales of ramen and other related menu items. The company operates numerous locations that attract a steady flow of customers, allowing it to capitalize on high volume sales. In addition to direct restaurant sales, Kourakuen Holdings may also engage in franchising agreements, expanding its brand presence and revenue potential. Partnerships with food suppliers and distributors ensure cost-effective sourcing of ingredients, which helps maintain competitive pricing and profit margins. The company may also explore collaborations and marketing campaigns to enhance brand visibility and attract a diverse customer base.

Kourakuen Holdings Corporation Financial Statement Overview

Summary

Kourakuen Holdings is showing signs of recovery and financial improvement, particularly in profitability and cash flow management. Despite a significant revenue decline, the company has improved its net profit margin and reduced leverage, indicating better cost control and financial health.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.45B	18.84B	26.80B	25.46B	25.02B	26.57B
Gross Profit	19.35B	10.11B	18.96B	18.41B	17.98B	18.91B
EBITDA	1.21B	1.69B	1.09B	-591.95M	2.76B	-127.43M
Net Income	860.14M	799.62M	94.26M	-2.86B	374.01M	-841.68M
Balance Sheet
Total Assets	10.01B	12.49B	10.47B	10.80B	14.14B	17.20B
Cash, Cash Equivalents and Short-Term Investments	2.04B	4.72B	2.13B	1.29B	1.18B	2.91B
Total Debt	2.78B	1.79B	4.30B	5.65B	5.88B	6.32B
Total Liabilities	7.79B	6.50B	8.76B	9.93B	10.54B	14.03B
Stockholders Equity	2.22B	5.99B	1.70B	865.28M	3.61B	3.16B
Cash Flow
Free Cash Flow	500.26M	1.75B	689.08M	-412.80M	-1.28B	83.53M
Operating Cash Flow	500.26M	1.99B	1.10B	282.83M	-203.45M	797.10M
Investing Cash Flow	0.00	33.39M	417.44M	27.58M	-1.01B	-550.66M
Financing Cash Flow	0.00	923.70M	-675.31M	-205.21M	-510.25M	1.02B

Kourakuen Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1023.00
• 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 1023 is below the 20-day moving average (MA) of 1034.25, below the 50-day MA of 1032.60, and below the 200-day MA of 1114.64, indicating a bearish trend. The MACD of -1.84 indicates Positive momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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	¥16.70B	28.32		0.41%	0.31%	-41.46%
3329	68 Neutral	¥16.87B	23.41		0.96%	3.48%	2.31%
3075	67 Neutral	¥20.77B	29.50		0.79%	5.86%	-23.12%
7621	67 Neutral	¥20.06B	146.43		0.42%	1.03%	-84.27%
Sector *	63 Neutral	$16.62B	10.98	-6.98%	2.96%	1.73%	-24.23%
7554	61 Neutral	¥19.55B	18.76		―	6.19%	―
2694	53 Neutral	¥16.67B	44.38		0.70%	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.

Kourakuen Corporation Announces Changes in Leadership

Kourakuen Corporation announced changes in its board of directors, which will be finalized at the upcoming shareholders meeting in June 2025. These changes include the promotion of Masahiko Haga to Executive Managing Director and the appointment of Masahiko Kano as a new Director, highlighting the company’s strategic focus on strengthening its leadership team.