Kourakuen Holdings Corporation (JP:7554)
:7554
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Kourakuen Holdings Corporation
(7554)
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Rating:62Neutral
Price Target:
¥1,149.00
▲(2.13% Upside)
Action:Reiterated
Date:05/15/26
The score is driven mainly by improving financial performance, led by the 2026 profitability/revenue rebound and a notably strengthened balance sheet. This is tempered by weak technical momentum (below major moving averages with negative MACD) and only moderate valuation support (mid-range P/E and modest yield).
Positive Factors
De-risked Balance Sheet
The material reduction in debt-to-equity to 0.19x and a larger equity base materially reduces financial risk and interest burden. This stronger capital structure enhances resilience to demand swings, gives capacity for investment or M&A, and lowers refinancing pressure over the medium term.
Negative Factors
Modest net margins
A low net margin near 4% limits the company's buffer against cost inflation or demand softness. Even with rising revenue, modest margins constrain free cash flow upside and reduce resilience, meaning profitability gains must be sustained and expanded to support durable value creation.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked Balance Sheet
The material reduction in debt-to-equity to 0.19x and a larger equity base materially reduces financial risk and interest burden. This stronger capital structure enhances resilience to demand swings, gives capacity for investment or M&A, and lowers refinancing pressure over the medium term.
Read all positive factors
Kourakuen Holdings Corporation (7554) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥20.79B
Dividend YieldN/A
Average Volume (3M)53.88K
Price to Earnings (P/E)18.9
Beta (1Y)0.37
Revenue GrowthN/A
EPS GrowthN/A
CountryJP
Employees510
SectorConsumer Cyclical
Sector Strength84
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 operates a chain of restaurants under the Korakuen name in Japan. As of November 11, 2020, it operated 456 stores. The company was formerly known as Kourakuen Co., Ltd. and changed its name to Kourakuen Holdings Corp...
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
Negative
1125.00
Price Trends
1168.76
Negative
1146.01
Negative
1096.91
Positive
Market Momentum
-13.97
Positive
40.42
Neutral
26.88
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 1125 is below the 20-day moving average (MA) of 1147.59, below the 50-day MA of 1168.76, and above the 200-day MA of 1096.91, indicating a neutral trend. The MACD of -13.97 indicates Positive momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 26.88 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥170.98B | 27.13 | ― | 1.65% | 8.90% | 12.10% | |
62 Neutral | ¥20.79B | 18.94 | ― | ― | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥204.41B | 37.97 | ― | 0.69% | 10.09% | 22.64% | |
60 Neutral | ¥55.20B | 15.70 | ― | 0.56% | 2.94% | 78.37% | |
57 Neutral | ¥102.42B | 15.35 | ― | 0.37% | 20.01% | 38.88% | |
52 Neutral | ¥9.94B | -33.16 | ― | 0.59% | 4.99% | -74.64% |
* Consumer Cyclical Sector Average
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Kourakuen Holdings Corporation Corporate Events
Kourakuen Lifts Medium-Term Targets After Beating Initial Three-Year Plan
May 13, 2026
Kourakuen Corporation has revised its medium-term management plan after its performance for the fiscal year ended March 2026 largely met the original targets that had been set for the final year of the prior plan. The company is now targeting stro...
Kourakuen to Introduce Restricted Stock Plan for Directors
May 13, 2026
Kourakuen Corporation’s board has approved the introduction of a new restricted stock compensation plan for its internal directors, subject to shareholder approval at the June 18, 2026 annual meeting. The scheme aims to better align manageme...
Kourakuen Posts Strong Profit Rebound and Restores Dividend as Outlook Improves
May 13, 2026
Kourakuen Corporation reported a sharp rebound in earnings for the fiscal year ended March 31, 2026, with net sales surging 56.0% year on year to ¥29.4 billion and operating profit jumping 241.5% to ¥1.5 billion. Ordinary profit climbed ...
Kourakuen Lifts Medium-Term Targets After Beating Original Plan Benchmarks
May 13, 2026
Kourakuen Corporation has revised its medium-term management plan after results for the year ended March 2026 largely met targets that had originally been set for the plan’s final year. The updated framework, now covering fiscal 2027 to 2029...
Kourakuen to Tie Director Pay More Closely to Shares with New Restricted Stock Plan
May 13, 2026
Kourakuen Corporation’s board has approved the introduction of a new restricted stock compensation plan for internal directors, subject to shareholder approval at the June 18, 2026 annual meeting. The scheme is designed to better align manag...
Kourakuen Rebounds Strongly, Restores Dividend and Signals Further Growth
May 13, 2026
Kourakuen Corporation reported a sharp rebound in performance for the fiscal year ended March 31, 2026, with net sales surging 56% to ¥29.4 billion and operating profit more than tripling to ¥1.52 billion. Net assets rose to ¥7.19 b...
Kourakuen Posts 7% April Sales Gain on Higher Traffic and Spending
May 7, 2026
Kourakuen Corporation reported that April sales at its directly managed existing stores in Japan rose 7.4% year on year, driven by a 5.3% increase in customer numbers and a 2.0% rise in average spending. The company ended the month with 336 such o...
Kourakuen Overhauls Board, Elevates Haga to President and Adds Outside Director
Apr 22, 2026
Kourakuen Corporation has announced a new board lineup, including the promotion of Chairman and President Tsutae Niida to Representative Director, Chairman, and the elevation of Executive Managing Director Masahiko Haga to Representative Director,...
Kourakuen Reshapes Executive Roles to Sharpen Management Focus
Apr 22, 2026
Kourakuen Holdings Corporation announced changes to its executive lineup following a Board of Directors meeting held on April 22, 2026. The move reflects ongoing optimization of its management structure as the company seeks to maintain effective g...
Kourakuen Posts Solid FY2026 Sales Growth as Customer Traffic Rises
Apr 3, 2026
Kourakuen reported preliminary March sales trends for its directly managed domestic stores in the fiscal year ending March 2026, showing continued year-on-year growth despite a slightly softer pace than the prior year. Existing-store sales rose 5....
Kourakuen Posts Solid February Sales Gains Despite Smaller Store Network
Mar 4, 2026
Kourakuen Corporation reported preliminary February sales trends for its directly managed domestic stores in the fiscal year ending March 2026, showing continued year-on-year growth in both sales and customer numbers. Existing stores posted a 7.1%...
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.