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

• Market Cap: ¥19.75B
• Dividend Yield: 0.43%
• Average Volume (3M): 1.16K
• Price to Earnings (P/E): 144.2
• Beta (1Y): 0.20
• Revenue Growth: 1.03%
• EPS Growth: -84.27%
• Country: JP
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Restaurants
• EPS (TTM): 7.43
• Shares Outstanding: 5,611,540
• 10 Day Avg. Volume: 1,100
• 30 Day Avg. Volume: 1,160
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥3,717.00 ▲(5.60%Upside)

UKAI CO.,LTD.'s stock score is primarily supported by strong financial performance with robust revenue growth and cash flow management. However, high valuation and current technical indicators suggest caution, as the stock may be overvalued with potential short-term weakness.

UKAI CO.,LTD. Business Overview & Revenue Model

Company Description

UKAI CO., LTD. (7621) is a Japanese company primarily engaged in the restaurant industry. The company operates a chain of themed and specialty restaurants, offering a variety of dining experiences ranging from traditional Japanese cuisine to international dishes. UKAI is known for its emphasis on high-quality ingredients and unique dining environments that create memorable experiences for its customers.

How the Company Makes Money

UKAI CO., LTD. generates revenue primarily through its restaurant operations. The company earns money from direct sales of food and beverages across its various restaurant locations. Each restaurant has a distinct theme or specialty, attracting different customer segments and encouraging repeat visits. Additionally, UKAI may engage in partnerships with suppliers to ensure quality ingredients, potentially receiving favorable pricing or exclusive access to premium products, which can help manage costs and enhance profitability. The company's revenue is also influenced by its strategic locations, brand reputation, and customer loyalty programs that encourage frequent dining.

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
	EBIT
721.72M	890.20M	763.53M	-1.08B	-1.20B
	EBITDA
794.93M	1.29B	1.29B	-275.48M	-1.23B
	Net Income Common Stockholders
136.92M	870.08M	918.25M	-869.30M	-1.68B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.41B	1.82B	2.29B	1.87B	413.57M
	Total Assets
10.90B	10.76B	11.26B	10.98B	10.24B
	Total Debt
2.49B	2.97B	4.28B	5.18B	4.62B
	Net Debt
-2.93B	1.16B	1.99B	3.31B	4.20B
	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: 3520.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3520 is below the 20-day moving average (MA) of 3550.00, below the 50-day MA of 3550.70, and below the 200-day MA of 3637.38, indicating a bearish trend. The MACD of -11.09 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 17.63 is Positive, 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	78 Outperform	¥23.12B	38.90		―	―	―
3075	66 Neutral	¥20.66B	29.35		0.80%	5.86%	-23.12%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
7621	60 Neutral	¥19.75B	144.18		0.43%	1.03%	-84.27%
3068	55 Neutral	¥19.06B	20.23		0.56%	3.24%	-11.45%
7554	54 Neutral	¥19.76B	18.89		―	6.19%	―
9850	50 Neutral	¥22.19B	34.18		0.62%	13.61%	-40.79%