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ASAKUMA CO.,LTD. (JP:7678)
:7678
Japanese Market
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ASAKUMA CO.,LTD. (7678) AI Stock Analysis

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JP:7678

ASAKUMA CO.,LTD.

(7678)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥3,217.00
▼(-33.87% Downside)
Action:Downgraded
Date:07/31/26
The score is driven primarily by strong financial positioning (debt reduced to zero and solid revenue rebound) but is meaningfully capped by inconsistent profitability/cash conversion and a very high P/E valuation. Technicals add some caution in the near term as the stock trades below key short- and mid-term moving averages, despite remaining above the 200-day average.
Positive Factors
Zero net debt / conservative balance sheet
The balance sheet shows debt reduced steadily to zero by 2026 and growing equity, creating low financial risk and high flexibility. This durable capital structure supports investment, weathering downturns, and lowers default and refinancing risk over the next several months.
Negative Factors
Thin, volatile margins
Operating and EBITDA margins remain thin and volatile (operating ~1.3%, EBITDA ~2.7% in 2025), limiting sustainable earnings power. Thin margins make profits sensitive to cost inflation or revenue mix shifts and raise execution risk for consistent net income growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Zero net debt / conservative balance sheet
The balance sheet shows debt reduced steadily to zero by 2026 and growing equity, creating low financial risk and high flexibility. This durable capital structure supports investment, weathering downturns, and lowers default and refinancing risk over the next several months.
Read all positive factors

ASAKUMA CO.,LTD. (7678) vs. iShares MSCI Japan ETF (EWJ)

ASAKUMA CO.,LTD. Business Overview & Revenue Model

Company Description
Asakuma Co.,Ltd, alongside its affiliate Asakuma Succession Co., Ltd., is actively involved in the restaurant management and franchising industry across Japan. The company oversees a diverse range of culinary establishments, featuring steak restau...
How the Company Makes Money
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ASAKUMA CO.,LTD. Financial Statement Overview

Summary
Strong recovery with accelerating revenue growth (33.2% in 2026) and a materially improved, low-risk balance sheet (debt reduced to zero in 2026). Offsetting this strength, profitability and cash-flow quality have been volatile: thin operating/EBITDA margins in 2025 and net income falling in 2026 despite higher sales, plus uneven free cash flow (notably the sharp dip in 2025).
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
76
Positive
BreakdownTTMJan 2026Jan 2025Dec 2023Mar 2023Mar 2022
Income Statement
Total Revenue8.30B10.05B8.35B7.32B6.20B5.25B
Gross Profit4.62B5.51B4.51B4.24B3.68B3.07B
EBITDA271.95M636.07M221.32M257.00M88.87M348.88M
Net Income375.10M325.15M567.97M156.58M-12.18M60.12M
Balance Sheet
Total Assets4.04B4.95B4.36B3.76B3.31B3.88B
Cash, Cash Equivalents and Short-Term Investments1.94B2.44B2.06B2.05B1.73B2.00B
Total Debt84.00M0.0080.35M94.94M105.20M507.83M
Total Liabilities1.18B1.56B1.29B1.25B934.73M1.46B
Stockholders Equity2.86B3.40B3.07B2.50B2.37B2.41B
Cash Flow
Free Cash Flow0.00532.25M34.59M340.77M159.04M518.77M
Operating Cash Flow0.00877.76M314.91M484.52M307.16M609.13M
Investing Cash Flow0.00-417.65M-288.00M-156.87M-140.87M-102.37M
Financing Cash Flow0.00-80.73M2.92M-10.26M-430.54M-321.32M

ASAKUMA CO.,LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4865.00
Price Trends
50DMA
3171.96
Negative
100DMA
2991.38
Positive
200DMA
2650.63
Positive
Market Momentum
MACD
-34.03
Positive
RSI
50.04
Neutral
STOCH
64.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7678, the sentiment is Positive. The current price of 4865 is above the 20-day moving average (MA) of 3174.65, above the 50-day MA of 3171.96, and above the 200-day MA of 2650.63, indicating a neutral trend. The MACD of -34.03 indicates Positive momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7678.

ASAKUMA CO.,LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
¥32.05B111.4624.73%-51.87%
62
Neutral
¥21.52B18.62
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
¥23.16B42.670.78%6.26%58.91%
53
Neutral
¥22.37B99.290.62%4.79%-65.31%
50
Neutral
¥22.13B43.850.81%0.56%-53.12%
44
Neutral
¥18.99B79.740.54%8.03%-74.75%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7678
ASAKUMA CO.,LTD.
3,145.00
1,022.50
48.17%
JP:2882
EAT&HOLDINGS Co., Ltd.
2,057.00
-26.07
-1.25%
JP:3068
WDI Corporation
3,005.00
1.51
0.05%
JP:3178
CHIMNEY CO LTD
1,141.00
-131.06
-10.30%
JP:7554
Kourakuen Holdings Corporation
1,123.00
71.76
6.83%
JP:9850
GOURMET KINEYA CO., LTD.
972.00
-27.90
-2.79%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2026