Hurxley Corporation (7561) AI Stock Analysis

• Market Cap: ¥10.81B
• Dividend Yield: 4.19%
• Average Volume (3M): 27.00K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.61
• Revenue Growth: 6.45%
• EPS Growth: -19.71%
• Country: JP
• Employees: 646
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 19,050,064
• 10 Day Avg. Volume: 23,430
• 30 Day Avg. Volume: 27,003
• PEG Ratio: -0.41
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -3.40
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥780.00 ▲(19.82% Upside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

Hurxley Corporation's overall stock score is driven by a stable financial performance with challenges in revenue growth and cash flow management. The technical analysis suggests a neutral trend, while the valuation is attractive due to a reasonable P/E ratio and a strong dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Stable gross and EBITDA margins

Sustained gross and EBITDA margins indicate durable cost structure and pricing power in the restaurant operations. Even with top-line pressure, healthy margins support operating profitability, buffer against revenue volatility, and provide a foundation for reinvestment and steady cash generation over months.

Solid equity base

A one-third equity ratio signals a meaningful capital cushion versus assets, reducing insolvency risk. This structural strength supports borrowing capacity for strategic investments, helps absorb short-term shocks, and underpins long-term financial resilience despite cyclical restaurant demand.

Consistent ROE

A modest yet steady ROE reflects the company's ability to generate returns on shareholder capital over time. Consistency suggests operational competence and predictable profitability, which supports sustainable dividend policies and measured reinvestment without abrupt shifts to strategy.

Negative Factors

Severe free cash flow deterioration

A dramatic swing to negative free cash flow signals structural cash-generation weakness. Low operating cash conversion (OCF to net income 0.04) undermines the company's ability to fund capex, service debt, or maintain dividends without external financing, raising medium-term liquidity risk.

Declining revenue trend

Falling revenues erode scale economics in a low-margin restaurant sector. Continued top-line decline pressures margins, weakens bargaining power with suppliers, and limits the firm's ability to absorb fixed costs, making sustained profit and cash generation more challenging absent revenue initiatives.

Rising leverage risk

Moderate-to-high leverage reduces financial flexibility and increases interest burden. With weakened cash flow and falling revenue, higher debt amplifies refinancing and solvency risk, potentially constraining capital allocation and forcing defensive measures that hurt long-term growth prospects.

Hurxley Corporation Business Overview & Revenue Model

Company Description

Hurxley Corporation operates Hokka Hokka Tei franchise chain stores in Japan. Its stores offer take-out boxed lunch. The company was formerly known as Kansai Hokka-Hokka Tei Corp. and changed its name to Hurxley Corporation in July 1993. Hurxley Corporation was founded in 1980 and is headquartered in Osaka, Japan.

Hurxley Corporation Financial Statement Overview

Summary

Hurxley Corporation's financial statements present a mixed picture. While profitability margins remain stable, revenue growth has declined, and cash flow management poses challenges. The balance sheet is stable, but rising debt levels require careful monitoring. Overall, the company needs to focus on revitalizing revenue growth and improving cash flow efficiency to strengthen its financial position.

Income Statement

Hurxley Corporation's income statement shows a mixed performance. The company has experienced a decline in total revenue from ¥46.76 billion in 2024 to ¥45.18 billion in 2025, indicating a negative revenue growth rate. However, the gross profit margin remains strong at 32.07%, and the net profit margin is healthy at 2.67%. The EBIT and EBITDA margins are 4.28% and 8.08%, respectively, suggesting reasonable operational efficiency. Despite the revenue decline, profitability metrics are stable, but the company needs to address revenue growth challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.43, indicating moderate leverage. The return on equity (ROE) stands at 4.88%, which is modest but consistent. The equity ratio is 33.57%, showing a solid equity base relative to total assets. While the company has increased its total assets, the rise in total debt requires careful management to prevent excessive leverage. Overall, the balance sheet is stable, but attention to debt levels is necessary.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow from ¥209 million in 2024 to negative ¥3.64 billion in 2025, indicating a negative free cash flow growth rate. The operating cash flow to net income ratio is low at 0.04, suggesting potential issues in converting earnings into cash. The free cash flow to net income ratio is negative, highlighting cash flow pressures. The company needs to improve cash flow management to support operations and growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.40B	45.17B	46.76B	35.61B	31.72B	27.59B
Gross Profit	14.81B	14.49B	14.84B	12.16B	10.40B	9.49B
EBITDA	3.39B	3.52B	3.76B	2.51B	1.99B	1.47B
Net Income	878.00M	1.20B	1.60B	1.05B	978.00M	81.00M
Balance Sheet
Total Assets	73.14B	73.43B	64.40B	58.51B	48.16B	37.27B
Cash, Cash Equivalents and Short-Term Investments	12.14B	12.34B	14.61B	11.68B	11.59B	5.16B
Total Debt	35.38B	35.42B	26.85B	24.34B	16.82B	7.64B
Total Liabilities	48.68B	48.76B	40.24B	35.95B	26.54B	16.45B
Stockholders Equity	24.32B	24.66B	24.16B	22.56B	21.62B	20.82B
Cash Flow
Free Cash Flow	0.00	-3.64B	263.00M	-3.81B	1.39B	-5.23B
Operating Cash Flow	0.00	51.00M	7.03B	1.71B	2.71B	-2.14B
Investing Cash Flow	0.00	-6.89B	-6.26B	-8.08B	-5.41B	-2.22B
Financing Cash Flow	0.00	4.56B	2.07B	6.30B	9.03B	1.92B

Hurxley Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 651.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7561, the sentiment is Negative. The current price of 651 is below the 20-day moving average (MA) of 749.10, below the 50-day MA of 726.36, and below the 200-day MA of 653.50, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 28.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7561.

Hurxley Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7561	65 Neutral	¥10.81B	4.16	―	4.19%	6.45%	-19.71%
2764	65 Neutral	¥10.30B	4.48	―	―	-26.12%	-110.09%
3082	64 Neutral	¥10.21B	22.98	―	0.78%	10.30%	1.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3418	55 Neutral	¥11.63B	97.53	―	0.74%	6.26%	-4.84%
3053	48 Neutral	¥10.50B	36.57	―	―	1.54%	-18.59%
3175	40 Underperform	¥12.10B	6.57	―	―	3.90%	―

Hurxley Corporation Corporate Events

Hurxley Lifts Full-Year Outlook After Double-Digit Q3 Sales and Profit Growth

Hurxley Corporation reported strong consolidated results for the third quarter of the fiscal year ending March 31, 2026, with net sales up 18.8% year on year to ¥39.0 billion and substantial gains in EBITDA, operating profit and ordinary profit. Despite this topline and profit growth, profit attributable to owners of parent edged down 0.6% to ¥1.24 billion, while total assets and shareholders’ equity both increased, keeping the capital adequacy ratio above 34%.

The company maintained its dividend stance, having raised the interim dividend to ¥14 per share and forecasting a full-year payout of ¥28, alongside an upgraded full-year outlook calling for net sales of ¥51.0 billion and a 34.6% surge in operating profit. However, the revised forecast excludes potential fourth-quarter contributions from real estate sales in the Store Asset & Solutions business, signaling possible upside once those transactions are finalized and disclosed, with implications for earnings visibility and investor expectations.

The most recent analyst rating on (JP:7561) stock is a Hold with a Yen701.00 price target. To see the full list of analyst forecasts on Hurxley Corporation stock, see the JP:7561 Stock Forecast page.