UKAI CO.,LTD. (7621) AI Stock Analysis

• Market Cap: ¥20.11B
• Dividend Yield: 0.42%
• Average Volume (3M): 966.00
• Price to Earnings (P/E): 146.8
• Beta (1Y): 0.20
• Revenue Growth: 1.03%
• EPS Growth: -84.27%
• Country: JP
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Restaurants
• EPS (TTM): 7.43
• Shares Outstanding: 5,611,540
• 10 Day Avg. Volume: 730
• 30 Day Avg. Volume: 966
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: ¥3,717.00
• Price Target Upside: 3.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥3,772.00 ▲(5.22%Upside)

UKAI CO.,LTD.'s overall score is driven by solid financial performance with revenue growth and strong cash flows, despite challenges in profitability and valuation concerns. Technical analysis indicates a neutral trend with limited short-term momentum. The high P/E ratio poses a significant valuation risk, impacting the overall score.

UKAI CO.,LTD. Business Overview & Revenue Model

Company Description

UKAI CO.,LTD. (7621) is a Japanese company primarily engaged in the food service industry. The company operates a chain of restaurants, offering a variety of dining experiences that include traditional Japanese cuisine, Western cuisine, and other specialty dining options. It is known for its quality ingredients and customer-focused service, catering to a diverse clientele seeking both casual and fine dining experiences.

How the Company Makes Money

UKAI CO.,LTD. generates revenue primarily through the operation of its restaurant chains. The company's income is derived from the sales of food and beverages to customers dining in their establishments. Key revenue streams include sales from its various themed restaurants, which attract different segments of the market. Additionally, the company may engage in partnerships with suppliers to ensure high-quality ingredients and maintain competitive pricing, contributing to its profitability. Seasonal promotions and exclusive menu offerings may also play a role in driving sales and increasing customer visits.

UKAI CO.,LTD. Financial Statement Overview

Summary

UKAI CO.,LTD. has shown strong revenue growth and operational efficiency, although profitability faces pressure. The balance sheet is stable with moderate leverage, and cash flow generation is robust, supporting operations and investments.

Income Statement

UKAI CO.,LTD. has shown a strong recovery in revenue, with a consistent growth trend over the past years, rebounding from the pandemic impact in 2021. The company achieved a robust gross profit margin of 54.4% in 2025, although the net profit margin decreased to 1.02% due to reduced net income. Despite this, the EBIT and EBITDA margins remain healthy at 5.36% and 5.91%, respectively, indicating operational efficiency. However, the decrease in EBIT and net income from the previous year suggests some challenges in maintaining profitability.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.52, indicating moderate leverage. The equity ratio is strong at 43.7%, reflecting a sound financial structure. Return on equity has dropped to 2.87% in 2025, suggesting a need for improved profitability to enhance shareholder returns. The company has a good liquidity position, with substantial cash reserves.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow, with a 12.08% growth from 2024 to 2025, indicating effective cash management. The operating cash flow to net income ratio stands at 9.03, suggesting strong operational cash flow relative to net income. The free cash flow to net income ratio of 7.97 supports the company's ability to generate cash beyond its earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.46B	13.33B	12.65B	9.82B	8.58B
Gross Profit	7.33B	7.43B	6.98B	4.79B	4.14B
EBITDA	794.93M	1.29B	1.29B	-275.48M	-1.23B
Net Income	136.92M	870.08M	918.25M	-869.30M	-1.68B
Balance Sheet
Total Assets	10.90B	10.76B	11.26B	10.98B	10.24B
Cash, Cash Equivalents and Short-Term Investments	5.41B	1.82B	2.29B	1.87B	413.57M
Total Debt	2.49B	2.97B	4.28B	5.18B	4.62B
Total Liabilities	6.13B	6.06B	7.36B	8.00B	7.38B
Stockholders Equity	4.77B	4.70B	3.90B	2.98B	2.86B
Cash Flow
Free Cash Flow	1.09B	974.34M	1.34B	98.69M	-1.20B
Operating Cash Flow	1.24B	1.17B	1.47B	159.47M	-909.21M
Investing Cash Flow	2.90B	-239.51M	-127.79M	-109.61M	-303.36M
Financing Cash Flow	-540.64M	-1.41B	-921.25M	1.40B	1.25B

UKAI CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7621, the sentiment is Negative. The current price of 3585 is above the 20-day moving average (MA) of 3582.00, above the 50-day MA of 3557.90, and below the 200-day MA of 3586.38, indicating a neutral trend. The MACD of 8.03 indicates Positive momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7621.

UKAI CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3075	67 Neutral	¥21.51B	30.56		0.77%	5.86%	-23.12%
Sector *	62 Neutral	$17.13B	10.11	-8.47%	3.27%	1.63%	-24.01%
7621	61 Neutral	¥20.11B	146.84		0.42%	1.03%	-84.27%
7554	61 Neutral	¥19.59B	18.72		―	6.19%	―
3068	60 Neutral	¥19.06B	20.23		0.56%	3.24%	-11.39%
7678	60 Neutral	¥22.94B	37.60		―	―	―
9850	50 Neutral	¥22.37B	34.46		0.62%	13.61%	-40.79%