Kannanmaru Corporation (7585) AI Stock Analysis

• Market Cap: ¥1.64B
• Dividend Yield: N/A
• Average Volume (3M): 15.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 7.82%
• EPS Growth: -14.63%
• Country: JP
• Employees: 106
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -7.05
• Shares Outstanding: 4,351,308
• 10 Day Avg. Volume: 12,560
• 30 Day Avg. Volume: 15,503
• PEG Ratio: -1.24
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 0.83
• P/FCF Ratio: -9.33
• 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: 48 Neutral
• Price Target: ¥412.00 ▼(-0.96% Downside)

Kannanmaru Corporation's stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis provides a neutral outlook, while valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, supporting long-term business sustainability.

Product Innovation

Investment in R&D for innovative products enhances competitive advantage and allows for premium pricing, boosting profit margins.

Sustainability Focus

Focus on sustainability strengthens brand loyalty and positions the company well in a growing market for eco-friendly products.

Negative Factors

Profitability Challenges

Persistent profitability issues suggest structural inefficiencies, which could hinder long-term financial health and growth.

Cash Flow Issues

Poor cash flow management limits the company's ability to reinvest in growth opportunities and meet financial obligations.

Rising Leverage

Increased leverage can strain financial flexibility and increase risk, potentially impacting long-term stability and growth.

Kannanmaru Corporation Business Overview & Revenue Model

Company Description

Kan-Nanmaru Corporation operates in food and beverage business as a franchisee in Japan. It operates restaurants and bars under various brands, including Shoya, Nihon kaishoya, sing village, and Jinbee Taro, as well as a VANSAN. The company was formerly known as Inshoku Kigyo Co., Ltd. and changed its name to Kan-Nanmaru Corporation in February 1995. The company was incorporated in 1978 and is headquartered in Saitama, Japan.

How the Company Makes Money

Kannanmaru Corporation generates revenue through multiple streams, including the sale of its consumer goods in retail and online markets. The company leverages a robust distribution network to reach a wide customer base, enhancing its sales volume. Additionally, Kannanmaru partners with various retailers and e-commerce platforms to maximize product visibility and accessibility. The company also invests in research and development to create innovative products that command premium pricing, thereby increasing profit margins. Seasonal promotions and marketing strategies further contribute to revenue growth, driving sales during peak demand periods.

Kannanmaru Corporation Financial Statement Overview

Summary

Kannanmaru Corporation shows revenue growth but struggles with profitability and cash flow. Negative net profit margins, EBIT margins, and cash flows indicate operational inefficiencies and high costs. Increasing leverage and negative returns on equity are concerning.

Income Statement

Kannanmaru Corporation has shown a consistent increase in revenue over the years, with a notable growth rate of 13.4% from 2024 to 2025. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains relatively strong, but the persistent negative EBIT and net income suggest operational inefficiencies and high costs.

Balance Sheet

The company has a moderate debt-to-equity ratio, which has increased over the years, indicating rising leverage. The equity ratio has decreased, reflecting a reduction in stockholders' equity relative to total assets. Return on equity is negative, highlighting challenges in generating returns for shareholders.

Cash Flow

Kannanmaru Corporation faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating difficulties in converting earnings into cash. The company needs to improve its cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.65B	1.34B	596.16M	733.05M
Gross Profit	1.23B	1.14B	905.09M	402.32M	497.27M
EBITDA	-128.57M	-134.78M	-240.70M	44.63M	-449.10M
Net Income	-218.52M	-206.63M	-295.51M	-10.25M	-504.91M
Balance Sheet
Total Assets	1.54B	1.78B	1.68B	1.77B	1.81B
Cash, Cash Equivalents and Short-Term Investments	516.63M	717.54M	808.48M	949.36M	805.83M
Total Debt	745.25M	787.97M	523.80M	375.58M	364.68M
Total Liabilities	1.11B	1.13B	826.76M	601.43M	629.30M
Stockholders Equity	426.21M	649.87M	854.79M	1.17B	1.18B
Cash Flow
Free Cash Flow	-167.55M	-358.50M	-292.75M	28.36M	-473.07M
Operating Cash Flow	-53.14M	-88.88M	-223.14M	116.56M	-449.97M
Investing Cash Flow	-104.03M	-316.16M	172.81M	-69.23M	184.66M
Financing Cash Flow	-43.74M	264.10M	94.38M	44.53M	245.92M

Kannanmaru Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 416.00
• 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:7585, the sentiment is Positive. The current price of 416 is below the 20-day moving average (MA) of 422.40, below the 50-day MA of 418.10, and below the 200-day MA of 416.44, indicating a bullish trend. The MACD of 3.63 indicates Negative momentum. The RSI at 60.36 is Neutral, neither overbought nor oversold. The STOCH value of 39.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7585.

Kannanmaru Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8181	75 Outperform	¥2.89B	6.84	―	1.33%	5.03%	129.14%
2789	70 Neutral	¥2.93B	8.78	―	1.02%	5.70%	-12.36%
3077	67 Neutral	¥2.99B	8.76	―	―	6.16%	86.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3370	55 Neutral	¥1.15B	11.50	―	0.60%	4.19%	87.44%
7585	48 Neutral	¥1.64B	―	―	―	7.82%	-14.63%
8209	38 Underperform	¥855.59M	―	―	―	7.45%	-46.31%