Saizeriya Co (7581) AI Stock Analysis

• Market Cap: ¥307.95B
• Dividend Yield: 0.55%
• Average Volume (3M): 414.97K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.52
• 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: ¥6,200.00
• Price Target Upside: -1.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥6,846.00 ▲(8.84% Upside)

Saizeriya Co's overall stock score is driven by its strong financial performance, characterized by consistent revenue growth and robust cash flow generation. The technical analysis suggests a neutral to slightly positive trend, while the valuation indicates the stock is fairly valued. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Low-cost, standardized operating model

Saizeriya’s standardized menu and low-cost model create durable unit economics: bulk purchasing and operational consistency reduce per-unit costs, enabling sustainable competitive pricing, repeatable margins, and scalable domestic/international expansion over the medium term.

Robust free cash flow generation

A near-3x increase in free cash flow and strong operating cash conversion provide lasting financial flexibility: funds for reinvestment, new openings, or debt reduction, improving resilience to shocks and supporting measured growth without dilutive financing.

Conservative balance sheet and low leverage

Low leverage and a high equity ratio signal durable financial stability, lowering refinancing and solvency risk. This capital structure supports counter-cyclical investment, smoother cashflow management, and capacity to fund strategic initiatives through cycles.

Negative Factors

Low net profitability

A sub-5% net margin constrains retained earnings and shareholder returns even with healthy revenue growth. Persistently low net profitability limits the company’s ability to convert top-line gains into durable earnings power and reinvestment capacity.

Large gap between gross and net margins

The wide gross-to-net margin spread implies significant operating expenses (labor, rent, SG&A). Structurally, this reduces leverage from sales growth, increases sensitivity to cost inflation, and constrains sustainable margin expansion absent structural cost changes.

Business model reliant on high transaction volume

Dependence on volume-driven, low-price sales means profitability is exposed to demand shocks, traffic declines, or rising per-transaction costs. Over the medium term, this model is vulnerable to structural shifts in consumer behaviour and cost inflation.

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

Saizeriya Co is performing well financially, with strong revenue growth and efficient operations reflected in the income statement. The balance sheet is solid with low leverage and a strong equity position. Cash flow metrics indicate robust cash generation capabilities, supporting the company's growth and stability. Saizeriya is well-positioned in the Restaurants & Bars industry, with opportunities for enhancing ROE to maximize shareholder value.

Income Statement

Saizeriya Co has shown a strong financial performance, with a significant revenue growth rate of 22.5% from the previous period, indicating robust growth. The gross profit margin stands at 58.8%, and the net profit margin is 3.6%, reflecting efficient cost management and profitability. The EBIT margin of 6.6% and EBITDA margin of 12.5% further highlight operational efficiency. Overall, the company demonstrates a solid growth trajectory and strong profitability metrics.

Balance Sheet

The balance sheet is healthy, with a low debt-to-equity ratio of 0.20, indicating conservative leverage. The company's return on equity (ROE) is 7.4%, showcasing moderate profitability relative to equity. The equity ratio of 65.9% suggests a strong capital structure with substantial equity financing. However, there is room for improvement in terms of increasing ROE for enhanced shareholder returns.

Cash Flow

Cash flow analysis shows a stable financial position, with a positive free cash flow of JPY 15.7 billion. The free cash flow to net income ratio is 1.93, indicating strong cash generation relative to profit. Operating cash flow to net income ratio is 2.96, reflecting efficient cash conversion. The free cash flow growth rate of 2.7% demonstrates consistent cash flow performance, supporting future growth opportunities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	249.61B	256.71B	224.54B	183.24B	144.28B	126.51B
Gross Profit	145.34B	149.08B	132.08B	110.50B	91.05B	80.15B
EBITDA	30.53B	32.38B	28.09B	19.75B	20.76B	13.71B
Net Income	10.76B	11.16B	8.15B	5.15B	5.66B	1.76B
Balance Sheet
Total Assets	175.52B	179.45B	168.14B	155.12B	147.93B	138.04B
Cash, Cash Equivalents and Short-Term Investments	67.78B	67.15B	71.95B	67.86B	60.27B	55.33B
Total Debt	24.57B	25.21B	22.68B	26.52B	27.52B	34.93B
Total Liabilities	61.67B	62.29B	57.33B	56.09B	53.41B	54.48B
Stockholders Equity	113.85B	117.16B	110.80B	99.03B	94.52B	83.57B
Cash Flow
Free Cash Flow	2.65B	7.67B	15.73B	15.31B	17.04B	4.01B
Operating Cash Flow	11.57B	26.28B	24.12B	20.80B	21.84B	12.19B
Investing Cash Flow	-9.33B	-18.74B	-8.87B	-5.91B	-2.46B	-11.05B
Financing Cash Flow	-6.00B	-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: Negative
• 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 above the 20-day moving average (MA) of 5770.50, above the 50-day MA of 5567.20, and above the 200-day MA of 5105.15, indicating a bullish trend. The MACD of 218.32 indicates Negative momentum. The RSI at 71.39 is Negative, neither overbought nor oversold. The STOCH value of 67.05 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
9936	69 Neutral	¥195.24B	22.07	―	1.65%	9.59%	8.08%
7581	67 Neutral	¥307.95B	26.70	9.66%	0.55%	14.33%	36.83%
7630	66 Neutral	¥146.37B	51.78	―	1.71%	9.51%	6.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3387	59 Neutral	¥331.18B	63.80	―	0.56%	9.28%	7.59%
7616	54 Neutral	¥189.72B	86.95	―	0.29%	8.99%	61.95%
9861	53 Neutral	¥196.91B	51.61	―	0.69%	10.75%	-14.28%

Saizeriya Co Corporate Events

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.