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

• Market Cap: ¥7.25B
• Dividend Yield: 1.22%
• Average Volume (3M): 6.78K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.02
• Revenue Growth: -1.26%
• EPS Growth: -137.16%
• Country: JP
• Employees: 657
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Restaurants
• EPS (TTM): -51.13
• Shares Outstanding: 9,029,200
• 10 Day Avg. Volume: 4,640
• 30 Day Avg. Volume: 6,776
• PEG Ratio: -0.19
• Price to Book (P/B): -8.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 40 Underperform
• Price Target: ¥781.00 ▼(-4.87%Downside)

Umenohana Co., Ltd. faces significant financial risks due to high leverage and negative profitability, which are the primary factors driving the low stock score. Technical indicators reflect a bearish trend, further emphasizing the company's challenges. The dividend yield provides some positive aspect but is insufficient to offset the overall negative outlook.

Umenohana Co., Ltd. Business Overview & Revenue Model

Company Description

Umenohana Co., Ltd. (7604) is a Japanese company primarily engaged in the operation of restaurants and food services. The company specializes in traditional Japanese cuisine, offering a wide range of dishes that highlight kaiseki, a traditional multi-course Japanese meal. Umenohana is renowned for its commitment to quality ingredients and authentic culinary techniques, making it a popular choice for both locals and tourists seeking an authentic Japanese dining experience.

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, including a decline in revenue, negative net income, and high leverage, with a debt-to-equity ratio of 9.06. Despite a strong gross profit margin of 65.04%, the company's negative profitability metrics and cash flow issues indicate potential liquidity constraints and financial instability.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
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: 821.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 821 is below the 20-day moving average (MA) of 823.05, below the 50-day MA of 829.34, and below the 200-day MA of 864.41, indicating a bearish trend. The MACD of -2.73 indicates Negative momentum. The RSI at 36.86 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 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	¥1.87B	10.28		―	2.45%	95.38%
3063	67 Neutral	¥9.20B	20.84		0.53%	14.85%	16.65%
Sector *	63 Neutral	kr10.72B	19.19	4.75%	2.95%	1.65%	-11.04%
7682	62 Neutral	¥8.93B	88.45		0.24%	4.58%	161.79%
3069	61 Neutral	¥8.15B	12.69		―	-3.97%	―
7918	45 Neutral	¥5.47B	23.54		―	2.31%	-107.45%
7604	40 Underperform	¥7.25B	20.56		1.22%	-1.26%	-137.16%