Revenue GrowthA 15.8% top-line increase year-over-year indicates durable demand for core products and successful market penetration. Sustained revenue growth supports economies of scale, funds product development and marketing, and underpins longer-term expansion into new channels and geographies.

High Gross Profit MarginA 54% gross margin signals strong product-level profitability and potential pricing power or favorable input economics. This structural margin buffer helps absorb SG&A and investment spending, supporting margin sustainability and resilience to moderate cost inflation.

Strong Balance Sheet / Low LeverageVery high equity ratio and minimal leverage provide financial flexibility and reduce default risk. This strong capital structure enables strategic investments, opportunistic M&A, or cyclical resilience without near-term refinancing pressure, strengthening long-term stability.

Bears Say

Plunging Free Cash FlowA 91.5% fall in free cash flow is a structural red flag for funding capacity; it can constrain capex, working-capital needs, and shareholder returns. If persistent, weak FCF undermines reinvestment, forces reliance on financing, and limits the company’s strategic optionality.

Low Cash ConversionSubpar cash conversion (0.55 OCF/NI and 0.06 FCF/NI) suggests earnings are not translating into cash, perhaps due to working-capital drag or non-cash items. Persistently weak conversion raises liquidity risk and can impair the company’s ability to self-fund growth or absorb shocks.

Low Operating MarginsDespite high gross margins, single-digit EBIT/EBITDA margins indicate elevated SG&A or fixed costs and limited operating leverage. This structural margin compression reduces profitability sensitivity to revenue growth and increases vulnerability to cost inflation or competitive pricing pressure.

7678 FAQ

What was ASAKUMA CO.,LTD.’s price range in the past 12 months?

ASAKUMA CO.,LTD. lowest stock price was ¥3510.00 and its highest was ¥4945.00 in the past 12 months.

What is ASAKUMA CO.,LTD.’s market cap?

ASAKUMA CO.,LTD.’s market cap is ¥25.07B.

When is ASAKUMA CO.,LTD.’s upcoming earnings report date?

ASAKUMA CO.,LTD.’s upcoming earnings report date is May 08, 2026 which is in 60 days.

How were ASAKUMA CO.,LTD.’s earnings last quarter?

Currently, no data Available

Is ASAKUMA CO.,LTD. overvalued?

According to Wall Street analysts ASAKUMA CO.,LTD.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does ASAKUMA CO.,LTD. pay dividends?

ASAKUMA CO.,LTD. pays a Semiannually dividend of ¥5 which represents an annual dividend yield of N/A. See more information on ASAKUMA CO.,LTD. dividends here

What is ASAKUMA CO.,LTD.’s EPS estimate?

ASAKUMA CO.,LTD.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does ASAKUMA CO.,LTD. have?

ASAKUMA CO.,LTD. has 5,385,020 shares outstanding.

What happened to ASAKUMA CO.,LTD.’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of ASAKUMA CO.,LTD.?

Currently, no hedge funds are holding shares in JP:7678

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

ASAKUMA CO.,LTD.

Asakuma Co.,Ltd, together with its subsidiary Asakuma Succession Co., Ltd., engages in the restaurant management and franchise business in Japan. It operates restaurants under the Steak no Asakuma name; Motsuyaki Izakaya under the Ebisu San name; Indonesian cuisine restaurant under the Surabaya name; and the Indonesian style Izakaya under the Wayambari name. The company was incorporated in 1948 and is based in Nagoya, Japan. Asakuma Co.,Ltd operates as a subsidiary of Tempos Holdings Co., Ltd.