Kourakuen Holdings Corporation (7554) AI Stock Analysis

• Market Cap: ¥19.70B
• Dividend Yield: N/A
• Average Volume (3M): 53.88K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 510
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 23.54
• Shares Outstanding: 20,832,441
• 10 Day Avg. Volume: 46,200
• 30 Day Avg. Volume: 53,883
• PEG Ratio: 0.03
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 9.81
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,225.00 ▲(10.16% Upside)

Kourakuen Holdings' stock score is primarily driven by its financial recovery and strong technical momentum. While profitability and cash flow have improved, the stock's valuation is moderate, and the high RSI suggests caution due to potential overbought conditions.

Positive Factors

Profitability Improvement

Turning a profit margin positive indicates better cost management and operational efficiency, which can enhance long-term profitability and shareholder value.

Cash Flow Management

A strong free cash flow growth rate supports operational stability and provides the company with the flexibility to invest in growth opportunities or reduce debt.

Leverage Reduction

Reduced leverage improves financial stability and reduces risk, allowing the company to better withstand economic fluctuations and invest in strategic initiatives.

Negative Factors

Revenue Decline

A substantial revenue decline can hinder growth prospects and indicates potential challenges in maintaining market share or customer demand.

Low Return on Equity

A low return on equity suggests limited efficiency in generating profits from shareholders' investments, which may affect investor confidence and long-term growth.

Historical Cash Flow Volatility

Volatility in cash flow can impact the company's ability to consistently fund operations and growth initiatives, posing risks to financial stability.

Kourakuen Holdings Corporation Business Overview & Revenue Model

Company Description

Kourakuen Holdings Corporation (7554) is a prominent Japanese company primarily engaged in the food and beverage sector, specializing in the operation of ramen restaurants. The company operates a chain of dining establishments offering a diverse menu centered around ramen and related dishes, catering to both local and international markets. In addition to its restaurant operations, Kourakuen Holdings is involved in food product development and distribution, enhancing its brand presence in the food industry.

How the Company Makes Money

Kourakuen Holdings generates revenue primarily through its restaurant operations, which include the sale of food and beverages at its ramen outlets. The company benefits from a franchise model, allowing it to expand its brand presence while generating franchise fees and royalties from franchisees. Additionally, Kourakuen Holdings earns income from its food product sales, which involve distributing packaged ramen and related products to grocery stores and other retail channels. The company's strategic partnerships with suppliers and distributors also play a crucial role in ensuring a consistent supply chain, ultimately contributing to its earnings through cost management and product availability.

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 revenue decline, the company has improved its EBIT margin and turned its net income positive. The balance sheet shows a moderate financial structure with reduced leverage, and cash flow statements indicate robust free cash flow growth. However, revenue growth 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.04B	18.84B	8.87B	25.46B	25.02B	26.57B
Gross Profit	9.85B	10.11B	18.96B	18.41B	17.98B	18.91B
EBITDA	902.96M	1.69B	1.09B	-632.97M	2.75B	-127.43M
Net Income	527.89M	799.62M	94.26M	-2.86B	374.01M	-841.68M
Balance Sheet
Total Assets	11.15B	12.49B	10.47B	10.80B	14.14B	17.20B
Cash, Cash Equivalents and Short-Term Investments	3.53B	4.72B	1.09B	1.29B	1.18B	2.91B
Total Debt	223.38M	1.79B	4.30B	5.65B	5.88B	6.32B
Total Liabilities	5.01B	6.50B	8.76B	9.93B	10.54B	14.03B
Stockholders Equity	6.14B	5.99B	1.70B	865.28M	3.61B	3.16B
Cash Flow
Free Cash Flow	0.00	1.75B	689.08M	-412.80M	-1.28B	83.53M
Operating Cash Flow	0.00	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: Positive
• Last Price: 1112.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1112 is above the 20-day moving average (MA) of 1104.95, above the 50-day MA of 1085.84, and above the 200-day MA of 1058.14, indicating a bullish trend. The MACD of 18.65 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 72.31 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7554	65 Neutral	¥19.70B	18.83	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3329	61 Neutral	¥16.66B	22.79	―	0.97%	3.21%	1.96%
7621	60 Neutral	¥19.80B	3,542.00	―	0.43%	2.86%	-129.51%
7562	59 Neutral	¥16.68B	47.00	―	0.41%	0.55%	-62.17%
3075	58 Neutral	¥20.80B	29.54	―	0.78%	―	―
2694	45 Neutral	¥16.44B	-23.36	―	0.71%	2.26%	-335.39%

Kourakuen Holdings Corporation Corporate Events

Kourakuen Corporation Introduces Long-Term Shareholder Benefit Program

Kourakuen Corporation has announced the establishment of a new long-term shareholder benefit program, effective from March 2026. This program aims to reward shareholders who have held 100 or more shares for over a year with additional benefits, enhancing their engagement and support for the company’s future growth.

The most recent analyst rating on (JP:7554) stock is a Hold with a Yen1075.00 price target. To see the full list of analyst forecasts on Kourakuen Holdings Corporation stock, see the JP:7554 Stock Forecast page.

Kourakuen Corporation Revises Financial Forecasts Amid Strong First Half Performance

Kourakuen Corporation announced a notable difference between its forecasted and actual financial results for the first half of the fiscal year ending March 2026, with actual profits significantly exceeding expectations due to increased customer visits and effective cost control. The company has revised its full-year financial forecast upwards, anticipating continued growth driven by extended store hours, seasonal product sales, and strategic operational adjustments.

The most recent analyst rating on (JP:7554) stock is a Hold with a Yen1075.00 price target. To see the full list of analyst forecasts on Kourakuen Holdings Corporation stock, see the JP:7554 Stock Forecast page.

Kourakuen Holdings Reports Positive Financial Outlook Amidst Growth

Kourakuen Holdings Corporation reported its non-consolidated financial results for the six months ended September 30, 2025, showing net sales of 14,447 million yen and a profit of 584 million yen. The company also revised its financial forecast for the fiscal year ending March 31, 2026, anticipating significant growth in net sales and profits, which indicates a positive outlook for its future operations and potential benefits for stakeholders.

The most recent analyst rating on (JP:7554) stock is a Hold with a Yen1075.00 price target. To see the full list of analyst forecasts on Kourakuen Holdings Corporation stock, see the JP:7554 Stock Forecast page.

Kourakuen Holdings Reports Positive Sales Trends for October 2025

Kourakuen Holdings Corporation reported preliminary sales trends for October 2025, indicating a year-on-year increase in sales and customer numbers for its directly managed stores. The data suggests a steady growth trajectory, with a slight increase in average customer spending, reflecting positively on the company’s operational performance and market positioning.

The most recent analyst rating on (JP:7554) stock is a Hold with a Yen1075.00 price target. To see the full list of analyst forecasts on Kourakuen Holdings Corporation stock, see the JP:7554 Stock Forecast page.

Kourakuen Holdings Reports Strong August Sales Growth

Kourakuen Holdings Corporation reported its preliminary sales trends for August 2025, showing a positive year-on-year growth in sales and customer numbers for its directly managed stores. The sales for existing stores increased by 112.4% compared to the previous year, with a notable rise in the number of customers by 110.6%. This growth indicates a strong market position and suggests a successful strategy in attracting more customers, which could positively impact the company’s financial performance and stakeholder confidence.

The most recent analyst rating on (JP:7554) stock is a Hold with a Yen1093.00 price target. To see the full list of analyst forecasts on Kourakuen Holdings Corporation stock, see the JP:7554 Stock Forecast page.