Saizeriya Co (7581) AI Stock Analysis

• Market Cap: ¥338.21B
• Dividend Yield: 0.55%
• Average Volume (3M): 414.97K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.53
• Revenue Growth: 14.33%
• EPS Growth: 36.83%
• Country: JP
• Employees: 4,504
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 62.95
• Shares Outstanding: 52,272,343
• 10 Day Avg. Volume: 760,320
• 30 Day Avg. Volume: 414,970
• PEG Ratio: 0.62
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 33.49
• 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: ¥7,280.00
• Price Target Upside: 15.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 262.61
• Revenue Forecast (FY): ¥284.93B

• Rating: 72 Outperform
• Price Target: ¥7,726.00 ▲(22.83% Upside)
• Action: Upgraded Date: 02/21/26
• Date: Action: Upgraded 02/21/26

The score is supported primarily by strong financial health (robust cash flow growth and low leverage) and positive technical momentum with an established uptrend. This is tempered by a relatively expensive valuation (high P/E and low dividend yield) and overbought technical readings that increase near-term risk.

Positive Factors

Low leverage and strong capital structure

Very low debt-to-equity and a high equity ratio provide financial flexibility and resilience. This durable capital structure reduces refinancing risk, supports steady expansion or share-holder returns, and gives capacity to absorb cyclical revenue shocks over the medium term.

Robust free cash flow growth

A near-200% rise in free cash flow demonstrates meaningful cash generation improvement, enabling reinvestment in stores, maintenance capex, and debt reduction. Sustainable FCF growth underpins long-term strategic initiatives and reduces reliance on external financing.

High gross margin and steady revenue trends

A high gross margin indicates strong unit economics from standardized menus and bulk purchasing. Combined with consistent revenue growth, this supports durable operating leverage: incremental sales can flow to profits if overhead is kept stable, aiding long-term margin sustainability.

Negative Factors

Low net profit margin

Despite healthy gross margins, the thin net margin constrains retained earnings and buffers against input cost inflation. Over the medium term this reduces flexibility for investment or payouts and makes results more sensitive to rising SG&A or commodity cost pressures.

Weak free cash flow conversion

Only about 29% of accounting profits becoming free cash flow limits the company's ability to self-fund expansion, dividends, or debt paydown despite profit growth. Structurally, this can constrain strategic options unless cash conversion improves.

Operating cash below reported earnings

Operating cash generation trailing net income raises questions about earnings quality and working-capital demands. For a high-volume restaurant chain, persistent cash conversion gaps could require more external working-capital financing during expansion phases.

Saizeriya Co Business Overview & Revenue Model

Company Description

Saizeriya Co.,Ltd. operates in the restaurant business. As of August 31, 2021, it operated 1,553 restaurants, including 1,089 restaurants in Japan and 464 restaurants internationally. The company was incorporated in 1973 and is headquartered in Yoshikawa, Japan.

How the Company Makes Money

Saizeriya Co., Ltd. generates revenue primarily through its chain of casual dining restaurants, which focus on providing budget-friendly Italian cuisine. The company's revenue streams include sales from food and beverages served at its establishments, as well as takeaway options. Saizeriya benefits from high customer turnover due to its competitive pricing strategy, which attracts a wide range of customers looking for affordable dining options. Additionally, the company may engage in strategic partnerships or collaborations to enhance its market reach and operational efficiency, although specific partnerships are not detailed in available data. By optimizing its supply chain and maintaining cost-effective operations, Saizeriya is able to sustain profitability while expanding its restaurant network both domestically and internationally.

Saizeriya Co Financial Statement Overview

Summary

Solid fundamentals driven by strong free cash flow growth and low leverage (debt-to-equity 0.22). Revenue growth is steady and gross margin is healthy (58.07%), but the net profit margin remains modest (4.35%), limiting the score.

Income Statement

Saizeriya Co has demonstrated consistent revenue growth over the past few years, with a notable increase of 2.85% in the latest year. The company maintains a healthy gross profit margin of 58.07%, indicating efficient cost management. However, the net profit margin is relatively low at 4.35%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position with a debt-to-equity ratio of 0.22, indicating low leverage and financial stability. The return on equity is improving, currently at 9.53%, which is a positive sign of profitability. The equity ratio stands at 65.31%, highlighting a solid capital structure.

Cash Flow

Saizeriya Co has shown impressive growth in free cash flow, with a significant increase of 189.25% in the latest year. The operating cash flow to net income ratio is 0.74, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 0.29, suggesting efficient cash management and potential for reinvestment.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	256.71B	224.54B	183.24B	144.28B	126.51B
Gross Profit	149.08B	132.08B	110.50B	91.05B	80.15B
EBITDA	32.38B	28.09B	19.75B	20.76B	13.71B
Net Income	11.16B	8.15B	5.15B	5.66B	1.76B
Balance Sheet
Total Assets	179.45B	168.14B	155.12B	147.93B	138.04B
Cash, Cash Equivalents and Short-Term Investments	67.15B	71.95B	67.86B	60.27B	55.33B
Total Debt	25.21B	22.68B	26.52B	27.52B	34.93B
Total Liabilities	62.29B	57.33B	56.09B	53.41B	54.48B
Stockholders Equity	117.16B	110.80B	99.03B	94.52B	83.57B
Cash Flow
Free Cash Flow	7.67B	15.73B	15.31B	17.04B	4.01B
Operating Cash Flow	26.28B	24.12B	20.80B	21.84B	12.19B
Investing Cash Flow	-18.74B	-8.87B	-5.91B	-2.46B	-11.05B
Financing Cash Flow	-10.05B	-14.84B	-8.16B	-16.47B	7.43B

Saizeriya Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6290.00
• 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:7581, the sentiment is Positive. The current price of 6290 is below the 20-day moving average (MA) of 6738.00, above the 50-day MA of 6253.60, and above the 200-day MA of 5445.20, indicating a bullish trend. The MACD of 224.60 indicates Negative momentum. The RSI at 68.64 is Neutral, neither overbought nor oversold. The STOCH value of 78.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7581.

Saizeriya Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7581	72 Outperform	¥338.21B	29.66	9.66%	0.55%	14.33%	36.83%
8179	66 Neutral	¥149.04B	26.66	9.66%	1.17%	8.16%	-6.01%
3197	63 Neutral	¥805.13B	48.82	9.53%	0.55%	15.58%	60.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7550	59 Neutral	¥1.56T	38.22	15.82%	0.78%	11.29%	-4.88%
2695	58 Neutral	¥145.54B	41.16	―	0.63%	4.32%	11.78%
9861	53 Neutral	¥200.21B	52.43	―	0.69%	10.75%	-14.28%

Saizeriya Co Corporate Events

Saizeriya Completes ¥314 Million Share Buyback Under Board-Approved Program

Saizeriya has completed a share repurchase program authorized by its board on January 14, 2026, acquiring 48,100 shares of its common stock on the Tokyo Stock Exchange between February 1 and February 12 for a total of ¥314.48 million. The buyback, executed as market purchases within an overall framework of up to 200,000 shares and ¥1 billion, signals ongoing capital management efforts that may support shareholder value and adjust the company’s capital structure.

While the final cumulative totals under the full authorization were not fully disclosed in this notice, the completion of this tranche confirms management’s commitment to returning capital through treasury share accumulation. Such repurchases can improve per-share metrics, potentially enhance the stock’s appeal to investors, and reflect confidence in the company’s medium-term prospects and market positioning in the competitive Japanese restaurant sector.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen7158.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.

Saizeriya Completes Share Buyback Under January 2026 Board Authorization

Saizeriya Co., Ltd. has completed a share repurchase program authorized by its board on January 14, 2026, acquiring its own common stock through market purchases on the Tokyo Stock Exchange. The move reflects an active capital management policy that may support shareholder value by reducing the free float and signaling management’s confidence in the company’s prospects.

Between February 1 and February 12, 2026, the company bought back 48,100 shares at a total cost of ¥314,476,996, within an overall framework allowing purchases of up to 200,000 shares or ¥1 billion. The completion of the repurchase under the set authorization underscores Saizeriya’s disciplined use of buybacks as part of its financial strategy, with potential implications for earnings per share and the ownership structure of its listed equity.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen7158.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.

Saizeriya Reports Progress on ¥1 Billion Share Buyback Program

Saizeriya has disclosed the status of its latest share repurchase program, confirming that it bought back 109,100 shares of its common stock for a total of ¥685,249,997 on the Tokyo Stock Exchange between January 15 and January 31, 2026. The buyback forms part of a Board-approved authorization from January 14, 2026 to repurchase up to 200,000 shares for as much as ¥1 billion by February 2026, signaling an ongoing capital management effort that may support shareholder returns and indicate management’s confidence in the company’s valuation.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen6709.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.

Saizeriya Finalizes Terms of New Employee Stock Option Program

Saizeriya has finalized the key terms of a new stock option program (Stock Acquisition Rights No. 18-2) for its employees, following a board resolution earlier in January 2026. The company will issue 3,393 stock acquisition rights to 2,045 employees, with each right corresponding to 100 shares and requiring no monetary payment upon allocation, while the exercise price has been set at ¥628,000 per right (¥6,280 per share). This move is likely aimed at strengthening employee incentives and aligning staff interests with shareholder value, potentially supporting Saizeriya’s long-term operational performance and market competitiveness in the highly competitive casual dining sector.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen6784.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.

Saizeriya Issues Employee Stock Options to Bolster Performance and Corporate Value

Saizeriya Co., Ltd. has resolved at its January 14, 2026 board meeting to issue stock acquisition rights as stock options to 2,045 company employees, aiming to strengthen motivation, improve business performance, and enhance corporate value. The plan covers 3,393 stock acquisition rights, each linked to 100 shares of common stock, with the exercise price set based on recent Tokyo Stock Exchange market prices and subject to adjustment for future stock splits, reverse splits, or corporate actions, signaling a continued use of equity-based compensation to align employees’ interests with shareholders and support the company’s long-term growth strategy.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen5714.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.

Saizeriya Launches ¥1 Billion Share Buyback to Bolster Capital Flexibility

Saizeriya’s board has approved a market buyback of its own common shares as part of a flexible capital policy aimed at proactively responding to changes in the business environment. The company plans to repurchase up to 200,000 shares, representing about 0.4% of its outstanding stock excluding treasury shares, for a total of up to 1 billion yen via market purchases on the Tokyo Stock Exchange between January 15 and February 12, 2026, a move that may support shareholder value and signal confidence in its financial position.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen5714.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.

Saizeriya Delivers Double-Digit Profit Growth and Confirms Dividend Outlook for FY2026

Saizeriya reported solid growth for the three months ended November 30, 2025, with net sales rising 14.7% year on year to ¥70.3 billion and profit attributable to owners of the parent climbing 16.4% to ¥3.1 billion, reflecting improved operating efficiency and higher earnings per share. The company maintained a strong financial position with an equity ratio of 64.5% and raised first-half and full-year forecasts for fiscal 2026 that point to continued gains in sales and double-digit profit growth, while keeping its annual dividend plan unchanged at ¥30 per share, signaling confidence in earnings stability and shareholder returns.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen5714.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.

Saizeriya Completes Treasury Stock Disposal for Restricted Stock Unit Compensation

Saizeriya Co., Ltd. has completed the payment procedures for a previously approved disposal of treasury shares to be used as restricted stock units, finalizing a board decision made on November 26, 2025. The company disposed of 41,000 shares of its common stock at 5,400 yen per share, for total proceeds of approximately 221.4 million yen, allocating the shares to selected internal directors (excluding outside and certain committee directors) and executive officers as part of its equity-based compensation, a move likely aimed at strengthening management incentives and aligning executives’ interests with those of shareholders.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen5794.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.

Saizeriya Co. Announces Disposal of Treasury Stock for Executive Incentive Plan

Saizeriya Co., Ltd. announced the disposal of 41,000 shares of treasury stock as part of a restricted stock unit plan aimed at incentivizing its directors and executive officers. This move is intended to align the interests of the company’s leadership with those of its shareholders by promoting a continuous increase in enterprise value. The plan involves a transfer restriction period of two years, during which the shares will be managed to prevent unauthorized transfers.

The most recent analyst rating on (JP:7581) stock is a Hold with a Yen5425.00 price target. To see the full list of analyst forecasts on Saizeriya Co stock, see the JP:7581 Stock Forecast page.