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

• Market Cap: ¥21.03B
• Dividend Yield: 0.4%
• Average Volume (3M): 2.10K
• Price to Earnings (P/E): 3763.1
• Beta (1Y): 0.20
• Revenue Growth: 1.95%
• EPS Growth: -99.25%
• Country: JP
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Restaurants
• EPS (TTM): -4.20
• Shares Outstanding: 5,616,940
• 10 Day Avg. Volume: 2,770
• 30 Day Avg. Volume: 2,100
• 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: ¥3,837.00
• Price Target Upside: 2.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ¥3,837.00 ▲(2.46% Upside)

The overall stock score of 62 reflects UKAI CO.,LTD.'s strong financial performance and positive technical indicators, offset by a high P/E ratio suggesting overvaluation. The company's robust cash flow and stable balance sheet are significant strengths, but the high valuation and low dividend yield present risks. The absence of earnings call data and corporate events limits additional insights.

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 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: Positive
• Last Price: 3745.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 3745 is above the 20-day moving average (MA) of 3694.00, above the 50-day MA of 3619.20, and above the 200-day MA of 3583.22, indicating a bullish trend. The MACD of 38.80 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥21.41B	30.42		0.77%	5.86%	-23.12%
7678	65 Neutral	¥22.43B	37.73		―	―	―
9850	63 Neutral	¥22.87B	49.34		0.60%	10.90%	-63.26%
7621	62 Neutral	¥21.03B	3,763.06		0.40%	1.95%	-99.25%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
3068	59 Neutral	¥19.06B	119.87		0.56%	1.45%	-87.10%
7554	59 Neutral	¥19.78B	18.91		―	6.19%	―