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

• Market Cap: ¥18.90B
• Dividend Yield: 0.45%
• Average Volume (3M): 3.60K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.17
• Revenue Growth: 2.86%
• EPS Growth: -129.51%
• Country: JP
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 53.75
• Shares Outstanding: 5,616,940
• 10 Day Avg. Volume: 1,810
• 30 Day Avg. Volume: 3,596
• PEG Ratio: -1.75
• Price to Book (P/B): 4.23
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 18.47
• 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: 60 Neutral
• Price Target: ¥3,822.00 ▲(13.08% Upside)
• Action: Reiterated Date: 10/01/25
• Date: Action: Reiterated 10/01/25

UKAI CO.,LTD. demonstrates strong financial resilience and cash flow management, but faces challenges with profitability and valuation. Technical indicators suggest potential short-term weakness, and the stock appears overvalued with a high P/E ratio. The lack of earnings call data limits insights into future guidance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and attract more customers, which is crucial for long-term success in the competitive food service industry.

Cash Flow Generation

Strong cash flow generation enhances the company's ability to invest in growth opportunities, manage debt, and provide financial stability, supporting long-term operational and strategic initiatives.

Balance Sheet Health

A stable balance sheet with moderate leverage ensures financial flexibility and resilience, enabling the company to withstand economic fluctuations and invest in future growth.

Negative Factors

Profitability Challenges

Decreasing net profit margins indicate challenges in maintaining profitability, which could impact the company's ability to reinvest in its business and reward shareholders.

Return on Equity Decline

A decline in return on equity suggests inefficiencies in generating returns from shareholders' investments, potentially affecting investor confidence and long-term growth prospects.

High Valuation Concerns

High valuation levels can limit stock price appreciation potential and may deter new investors, impacting the company's ability to raise capital for future growth initiatives.

UKAI CO.,LTD. Business Overview & Revenue Model

Company Description

Ukai Co.,Ltd. engages in the operation of restaurants and museums in Japan. It operates in three segments: Restaurant Division, Product Sales Division, and Culture Division. The company operates Japanese and western food restaurants, as well as operates art museum exhibitions. It also manufactures and sells confectionery and food products. The company was founded in 1964 and is headquartered in Hachioji, Japan.

How the Company Makes Money

UKAI CO.,LTD. generates revenue through multiple streams, primarily from the sale of its electronic components and industrial machinery. The company has established long-term contracts with major clients in the automotive, telecommunications, and consumer electronics sectors, which provide a stable foundation for its revenue. Additionally, UKAI CO.,LTD. invests in research and development to create cutting-edge technologies, allowing it to offer premium products at competitive prices. Strategic partnerships with other tech companies and suppliers further enhance its market reach and operational efficiency, contributing significantly to its earnings.

UKAI CO.,LTD. Financial Statement Overview

Summary

UKAI CO.,LTD. has shown resilience with strong revenue growth and operational efficiency post-pandemic. However, profitability pressures are evident with a decrease in net profit margin and EBIT. The balance sheet is stable with moderate leverage, and cash flow generation is robust, supporting operational needs.

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	4.65B
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: Neutral
• Last Price: 3380.00
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 3380 is above the 20-day moving average (MA) of 3365.25, above the 50-day MA of 3364.50, and below the 200-day MA of 3513.25, indicating a neutral trend. The MACD of -2.43 indicates Positive momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7621.

UKAI CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9701	66 Neutral	¥15.48B	6.69	―	0.73%	3.35%	-41.97%
2764	65 Neutral	¥10.93B	4.48	―	―	-26.12%	-110.09%
3082	64 Neutral	¥10.28B	22.98	―	0.78%	10.30%	1.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7621	60 Neutral	¥18.90B	15.73	―	0.45%	2.86%	-129.51%
7616	59 Neutral	¥200.88B	19.69	―	0.29%	8.99%	61.95%
7604	40 Underperform	¥7.67B	-21.68	―	1.21%	0.13%	-175.61%