Umenohana Co., Ltd. (7604) AI Stock Analysis

• Market Cap: ¥7.24B
• Dividend Yield: 1.22%
• Average Volume (3M): 11.18K
• Price to Earnings (P/E): 20.6
• Beta (1Y): <0.01
• Revenue Growth: -0.72%
• EPS Growth: -166.59%
• Country: JP
• Employees: 657
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -13.51
• Shares Outstanding: 9,029,200
• 10 Day Avg. Volume: 20,540
• 30 Day Avg. Volume: 11,183
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥774.00
• Price Target Upside: -5.61% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: ¥774.00 ▼(-5.61% Downside)

Umenohana Co., Ltd. is facing significant financial instability, with high leverage and negative profitability metrics being the most impactful factors. The technical analysis indicates a bearish trend, and the negative P/E ratio further highlights the company's financial difficulties. The modest dividend yield does little to offset these challenges.

Umenohana Co., Ltd. Business Overview & Revenue Model

Company Description

UMENOHANA Co., Ltd. engages in the restaurant business in Japan. It operates through three segments: Restaurant, Takeout, and Outside Sale. The company offers processed marine products, such as oyster products; Furuichian rolled sushi, inari sushi, oshizushi, assorted sushi, omusubi, steamed rice, etc.; take-out bento, Japanese side dishes, new year dishes, tofu and other processed soybean products, and frozen side dishes; and gift items, as well as perishables. It also provides Yuba and Tofu Shop Ume no Hana, Japanese nabedokoro sushihan hot pot dishes, sushi, rice bowls, set meals, drinks, take-out lunch boxes, seafood izakaya sakura suisan fish dishes, grilled chicken, a la carte dishes, drinks, and other food and drink products. It offers its products under the Ume-no-Hana and Furuichian brand names. The company was formerly known as K.K. Ume Corporation and changed its name to UMENOHANA Co., Ltd. in October 1997. UMENOHANA Co., Ltd. was founded in 1979 and is based in Kurume, Japan.

How the Company Makes Money

Umenohana Co., Ltd. generates revenue primarily through its chain of restaurants located across Japan. The company makes money by serving high-quality traditional Japanese dishes, which attract a wide range of customers. Revenue streams include dine-in services, takeout options, and special event catering. Additionally, Umenohana capitalizes on seasonal menus and limited-time offerings to boost sales, while maintaining a focus on customer satisfaction and repeat business. Partnerships with local suppliers ensure a steady supply of fresh ingredients, further enhancing the quality and appeal of their culinary offerings.

Umenohana Co., Ltd. Financial Statement Overview

Summary

Umenohana Co., Ltd. faces significant financial challenges, with declining revenues, negative net income, and high leverage. The company has a negative net profit margin and a high debt-to-equity ratio, indicating financial instability. Despite strong gross profit margins, cash flow issues and negative profitability metrics pose substantial risks.

Income Statement

Umenohana Co., Ltd. has experienced a decline in revenue, with a negative revenue growth rate of 1.26% from 2024 to 2025. The company has a negative net profit margin of -1.30% for 2025, indicating losses. However, the gross profit margin remains strong at approximately 65.04%, showing operational efficiency in generating profit from sales. EBIT and EBITDA margins are low, at 1.87% and 2.98% respectively, reflecting challenges in covering operating expenses.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 9.06 for 2025, posing a risk due to significant leverage. The return on equity is negative, at -20.95%, indicating inefficiency in generating returns on shareholder investments. The equity ratio is low at 7.97%, suggesting a limited buffer for absorbing financial shocks. These factors highlight financial instability and potential difficulties in meeting long-term obligations.

Cash Flow

The cash flow statement for Umenohana Co., Ltd. shows a negative free cash flow of -175.3 million JPY in 2025, indicating less cash available for reinvestment and potential cash constraints. The operating cash flow to net income ratio is -1.89, suggesting inefficiencies in converting net income into cash flow. The free cash flow to net income ratio is also negative, highlighting challenges in liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.64B	29.44B	29.82B	27.46B	22.59B	21.60B
Gross Profit	19.36B	19.15B	19.52B	17.65B	14.59B	14.22B
EBITDA	1.13B	878.17M	1.89B	421.50M	1.33B	-1.23B
Net Income	409.76M	-383.55M	1.02B	-440.82M	217.18M	-1.92B
Balance Sheet
Total Assets	24.21B	22.95B	25.11B	25.30B	28.70B	28.16B
Cash, Cash Equivalents and Short-Term Investments	2.95B	2.08B	2.76B	3.66B	6.50B	5.55B
Total Debt	17.53B	16.58B	16.86B	17.57B	20.40B	21.52B
Total Liabilities	21.85B	21.13B	21.73B	22.76B	25.57B	26.97B
Stockholders Equity	2.35B	1.83B	3.36B	2.51B	2.99B	1.00B
Cash Flow
Free Cash Flow	0.00	-175.29M	-85.92M	156.30M	-88.04M	-396.05M
Operating Cash Flow	0.00	725.24M	690.54M	956.42M	369.55M	-59.33M
Investing Cash Flow	0.00	-676.55M	-132.91M	-844.46M	-222.74M	242.35M
Financing Cash Flow	0.00	-1.00B	-934.66M	-2.95B	780.56M	2.85B

Umenohana Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 820.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7604, the sentiment is Negative. The current price of 820 is below the 20-day moving average (MA) of 822.00, below the 50-day MA of 822.36, and below the 200-day MA of 843.89, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 2.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7604.

Umenohana Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3077	67 Neutral	2.49B	10.80	0.00%	―	4.26%	73.63%
3063	62 Neutral	9.39B	21.34	23.98%	0.52%	14.85%	16.65%
7682	52 Neutral	8.55B	104.90	0.00%	0.38%	5.50%	-30.59%
3069	49 Neutral	7.57B	46.12	8.95%	―	-4.41%	0.03%
7918	42 Neutral	5.15B	-281.44	-1.64%	―	1.18%	-105.13%
7604	39 Underperform	¥7.24B	20.56		1.22%	-0.72%	-166.59%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%