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

• Market Cap: ¥19.94B
• Dividend Yield: 0.42%
• Average Volume (3M): 3.60K
• Price to Earnings (P/E): 3567.1
• Beta (1Y): 0.18
• Revenue Growth: 1.95%
• EPS Growth: -99.25%
• Country: JP
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -4.20
• Shares Outstanding: 5,616,940
• 10 Day Avg. Volume: 1,810
• 30 Day Avg. Volume: 3,596
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥3,822.00 ▲(7.06% Upside)

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.

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 demonstrated resilience and recovery in its financial performance post-pandemic. The company has shown revenue growth and operational efficiency, although profitability has faced some pressure. The balance sheet reflects a stable financial position with a moderate leverage profile. Cash flow generation has been robust, supporting operational and investment 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 3570.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 3570 is below the 20-day moving average (MA) of 3611.75, below the 50-day MA of 3702.20, and below the 200-day MA of 3597.77, indicating a bearish trend. The MACD of -47.27 indicates Negative momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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
7678	65 Neutral	¥22.94B	67.51	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7621	60 Neutral	¥19.94B	3,567.12	―	0.42%	1.95%	-99.25%
7554	59 Neutral	¥20.29B	19.40	―	―	―	―
3068	59 Neutral	¥19.06B	119.87	―	0.57%	1.45%	-87.10%
3075	58 Neutral	¥20.97B	29.84	―	0.78%	5.86%	-23.12%
9850	52 Neutral	¥22.10B	47.66	―	0.62%	10.90%	-63.26%