ASAKUMA CO.,LTD. (7678) AI Stock Analysis

• Market Cap: ¥25.90B
• Dividend Yield: N/A
• Average Volume (3M): 4.19K
• Price to Earnings (P/E): 76.4
• Beta (1Y): 0.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 107
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 5,385,020
• 10 Day Avg. Volume: 1,810
• 30 Day Avg. Volume: 4,193
• PEG Ratio: -1.79
• Price to Book (P/B): 7.32
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 46.68
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥5,173.00 ▲(6.33% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by improving fundamentals and low financial risk from a strengthened, near debt-free balance sheet and better cash generation. This is tempered by inconsistent margins/cash conversion and a demanding valuation (high P/E), while technicals are broadly neutral with mixed momentum.

Positive Factors

Accelerating revenue growth

A strong, accelerating top-line (33.2% in 2026) indicates durable recovery in demand and better market traction for the restaurant business. Sustained revenue momentum supports capacity utilization, supplier leverage and gives management room to invest in growth initiatives over the next 2–6 months and beyond.

Near debt-free balance sheet

A near zero debt position and growing equity materially lowers financial risk and enhances strategic flexibility. This durable capital structure reduces refinancing risk, supports investment or M&A optionality, and cushions the company against demand swings common in restaurants over the medium term.

Improving cash generation

Consistent positive operating cash flow and a notable 2026 step-up improve internal funding capacity and limit reliance on external capital. Stronger cash generation supports reinvestment in stores, working capital and potential shareholder returns, and is a durable pillar for operational stability.

Negative Factors

Volatile margins and earnings quality

Wide gap between gross and operating margins and historical volatility indicate weak cost control or high operating leverage. Such margin inconsistency undermines predictable profitability and free cash flow, complicating long-term planning, pricing strategy, and sustainable margin expansion in the restaurant sector.

Free cash flow inconsistency

A dramatic FCF decline in 2025 and weak cash conversion point to working-capital stress or one-off cash drains. This volatility reduces spare liquidity for capex or debt servicing in down cycles and raises execution risk on expansion or investor-return plans despite recent improvements.

Inconsistent historical returns

Past negative and very weak returns show the business has struggled to generate reliable shareholder returns across cycles. This persistent inconsistency raises concerns about operational resilience, strategy execution and the company’s ability to sustain improvements without structural changes.

ASAKUMA CO.,LTD. Business Overview & Revenue Model

Company Description

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.

ASAKUMA CO.,LTD. Financial Statement Overview

Summary

Strong recovery profile with accelerating revenue growth and improved profitability versus 2021–2023, supported by better operating cash flow in 2023–2026. Offsetting this, profitability and cash conversion have been volatile (notably weak FCF in 2025 and net income declining in 2026 despite higher sales), indicating margin/earnings consistency risk.

Income Statement

Revenue has rebounded strongly, accelerating from mid-teens growth in 2024–2025 to 33.2% in 2026 (annual). Profitability has also improved meaningfully versus the 2021–2023 period (including a net loss in 2023 and very weak results in 2021). However, margins appear volatile: 2025 shows healthy gross margin (~54%) but relatively thin operating and EBITDA margins (~1.3% and ~2.7%), and net income dropped in 2026 versus 2025 despite higher sales—suggesting cost pressure and less consistent earnings quality.

Balance Sheet

The balance sheet looks conservatively positioned and improving. Debt has been reduced steadily from 2021–2025 and is reported at zero in 2026 (annual), while equity has grown over time, indicating stronger capitalization. Prior years show very low leverage (debt-to-equity ~2.6% in 2025 and ~3.8% in 2024), which limits financial risk and provides flexibility. The main weakness is that returns have been inconsistent historically (negative in 2023 and very weak in 2021), though they improved materially by 2024–2025.

Cash Flow

Cash generation has improved versus the loss-making/negative cash flow period in 2021, with positive operating cash flow in 2023–2026 and a sharp step-up in 2026 (annual). Free cash flow is positive in most recent years, but volatility is notable: free cash flow fell sharply in 2025 (down ~91.5% year over year) and cash conversion in 2025 was relatively weak (operating cash flow was well below net income, and free cash flow was only a small portion of net income). The 2026 rebound is a clear positive, but consistency remains a key watch item.

Breakdown	TTM	Jan 2026	Jan 2025	Dec 2023	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.30B	10.05B	8.35B	7.32B	6.20B	5.25B
Gross Profit	4.62B	5.51B	4.51B	4.24B	3.68B	3.07B
EBITDA	255.68M	646.82M	291.11M	286.82M	154.77M	-187.06M
Net Income	375.10M	325.15M	567.97M	156.58M	-12.18M	60.12M
Balance Sheet
Total Assets	4.04B	4.95B	4.36B	3.76B	3.31B	3.88B
Cash, Cash Equivalents and Short-Term Investments	1.94B	2.44B	2.06B	2.05B	1.73B	2.00B
Total Debt	84.00M	0.00	80.35M	94.94M	105.20M	507.83M
Total Liabilities	1.18B	1.56B	1.29B	1.25B	934.73M	1.46B
Stockholders Equity	2.86B	3.40B	3.07B	2.50B	2.37B	2.41B
Cash Flow
Free Cash Flow	0.00	532.25M	34.59M	340.77M	159.04M	518.77M
Operating Cash Flow	0.00	877.76M	314.91M	484.52M	307.16M	609.13M
Investing Cash Flow	0.00	-417.65M	-288.00M	-156.87M	-140.87M	-102.37M
Financing Cash Flow	0.00	-80.73M	2.92M	-10.26M	-430.54M	-321.32M

ASAKUMA CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4865.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4718.75, above the 50-day MA of 4756.30, and above the 200-day MA of 4479.63, indicating a bullish trend. The MACD of 17.96 indicates Negative momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 95.04 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7678	66 Neutral	¥25.90B	76.41	―	―	―	―
7554	65 Neutral	¥22.43B	20.09	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3178	60 Neutral	¥25.45B	14.30	―	0.81%	0.32%	10.22%
2882	57 Neutral	¥22.26B	35.55	―	0.78%	8.86%	-17.71%
3068	54 Neutral	¥19.88B	14.00	―	0.54%	1.09%	-128.63%
9850	52 Neutral	¥22.53B	12.45	―	0.62%	7.64%	-65.84%