SRS HOLDINGS CO.,LTD. (8163) AI Stock Analysis

• Market Cap: ¥53.26B
• Dividend Yield: 0.58%
• Average Volume (3M): 99.78K
• Price to Earnings (P/E): 57.5
• Beta (1Y): 0.45
• Revenue Growth: 12.04%
• EPS Growth: -48.52%
• Country: JP
• Employees: 1,384
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Restaurants
• EPS (TTM): 22.39
• Shares Outstanding: 41,470,184
• 10 Day Avg. Volume: 105,430
• 30 Day Avg. Volume: 99,780
• PEG Ratio: -1.13
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,304.00
• Price Target Upside: 1.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,304.00 ▲(1.24%Upside)

The company's stock score is bolstered by strong financial performance and favorable technical indicators. However, its high P/E ratio suggests overvaluation, which weighs down the overall score. Continued financial improvements and market momentum are positive, but valuation concerns remain significant.

SRS HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

SRS HOLDINGS CO.,LTD. (8163) is a Japanese company that operates primarily in the food service industry. The company is known for managing a variety of restaurant chains, which cater to diverse culinary preferences, including traditional Japanese cuisine. SRS HOLDINGS is recognized for its commitment to quality and customer satisfaction, aiming to deliver exceptional dining experiences across its establishments.

How the Company Makes Money

SRS HOLDINGS CO.,LTD. generates revenue primarily through its restaurant operations. The company owns and operates multiple restaurant brands, each with its unique menu offerings and target customer base. Revenue is generated from the sale of food and beverages at these locations. Additionally, the company may engage in franchising, licensing its brand names and operational techniques to third-party operators, which also contributes to its income. Strategic partnerships with suppliers and marketing initiatives are significant factors that enhance its profitability by ensuring quality inputs and broader customer reach.

SRS HOLDINGS CO.,LTD. Financial Statement Overview

Summary

The company has shown strong revenue growth and improved profit margins. The balance sheet indicates improved financial stability with decreasing debt-to-equity ratios. However, high total liabilities and past cash flow challenges indicate areas for continued focus.

Income Statement

The company has shown a strong revenue growth trajectory from 2020 to 2025, with notable increases each year. Gross and net profit margins have improved significantly, indicating enhanced operational efficiency. EBIT and EBITDA margins have also improved, reflecting better cost management. However, profitability metrics were negative in earlier years, suggesting past struggles with costs and revenue generation.

Balance Sheet

The balance sheet shows a positive trend in stockholders' equity and a decreasing debt-to-equity ratio, suggesting improved financial stability. The equity ratio has remained stable, reflecting a balanced approach to asset financing. However, total liabilities remain high, presenting a potential risk in terms of leverage.

Cash Flow

Cash flow has improved notably, with free cash flow turning positive and growing in recent years. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to earnings. However, historical negative free cash flow in earlier years indicates past challenges in cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	67.48B	60.23B	54.51B	42.89B	43.71B
Gross Profit	42.31B	39.44B	35.51B	27.72B	28.17B
EBITDA	4.01B	3.86B	332.16M	3.88B	-2.21B
Net Income	925.80M	1.80B	-1.45B	1.57B	-4.07B
Balance Sheet
Total Assets	45.94B	35.73B	34.37B	35.49B	31.00B
Cash, Cash Equivalents and Short-Term Investments	12.57B	12.37B	12.15B	12.83B	9.43B
Total Debt	17.78B	10.30B	11.45B	12.65B	14.25B
Total Liabilities	28.92B	19.57B	20.31B	21.10B	21.01B
Stockholders Equity	16.50B	15.74B	13.72B	14.11B	9.79B
Cash Flow
Free Cash Flow	1.48B	1.51B	94.38M	2.82B	-4.68B
Operating Cash Flow	3.68B	3.73B	2.08B	4.71B	-3.53B
Investing Cash Flow	-10.46B	-2.29B	-2.80B	-1.86B	882.82M
Financing Cash Flow	6.98B	-1.22B	-31.00M	550.28M	3.20B

SRS HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1288.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8163, the sentiment is Positive. The current price of 1288 is above the 20-day moving average (MA) of 1245.80, above the 50-day MA of 1220.44, and above the 200-day MA of 1187.65, indicating a bullish trend. The MACD of 18.07 indicates Negative momentum. The RSI at 71.38 is Negative, neither overbought nor oversold. The STOCH value of 93.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8163.

SRS HOLDINGS CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3399	78 Outperform	¥62.45B	20.14		0.10%	28.23%	67.30%
3198	70 Outperform	¥51.26B	36.68		1.16%	2.95%	-17.77%
8163	67 Neutral	¥53.26B	57.53		0.58%	12.04%	-48.52%
9900	67 Neutral	¥53.00B	38.94		0.57%	12.99%	49.09%
Sector *	65 Neutral	S$968.10M	37.96	5.70%	2.76%	6.06%	-25.02%
3395	60 Neutral	¥52.21B	19.30		2.18%	9.82%	159.81%
3196	58 Neutral	¥43.05B	33.77		0.65%	16.40%	-14.88%

SRS HOLDINGS CO.,LTD. Corporate Events

SRS HOLDINGS Announces Consistent Dividend Payout

SRS HOLDINGS CO., LTD. announced a resolution for dividends of surplus, maintaining a dividend of 7.50 yen per share for the fiscal year ended March 31, 2025. This decision aligns with the company’s policy to ensure a dividend payout ratio of 20% or more, reflecting their commitment to both corporate growth and shareholder returns while considering future business development and retained earnings.

SRS HOLDINGS Announces Board of Directors Candidates

SRS HOLDINGS CO., LTD. has announced its candidates for the Board of Directors, which includes both reappointments and outside directors. This decision, made at the recent Board of Directors meeting, will be proposed at the upcoming Ordinary Shareholders Meeting, potentially impacting the company’s governance and strategic direction.

SRS HOLDINGS Announces Organizational Reforms and Personnel Changes

SRS HOLDINGS CO., LTD. announced organizational reforms and personnel changes effective July 1, 2025, aimed at enhancing its digital transformation strategy. The establishment of the SRS Group Digital Transformation Development Division will drive initiatives to reform business processes and models, optimize information systems, and strengthen the company’s market position.

SRS HOLDINGS Reports Financial Adjustments Amid Strong Sales

SRS HOLDINGS CO., LTD. announced the recording of non-operating income and extraordinary losses for the fiscal year ended March 31, 2025. The company reversed an allowance for doubtful accounts due to improved performance of its subsidiary, KAZOKUTEI CO., LTD., resulting in non-operating income. However, impairment losses on goodwill and valuation losses on shares of another subsidiary, NIS CO., LTD., were recorded, impacting the financial results. Despite these extraordinary losses, the company’s net sales, operating profit, and ordinary profit exceeded forecasts due to strong demand in the dining sector, though profit attributable to owners fell short due to the recorded losses.

SRS HOLDINGS Unveils Ambitious ‘SRS VISION 2030’ Plan

SRS HOLDINGS CO., LTD. has announced its new Medium-term Business Plan, ‘SRS VISION 2030,’ aiming for significant growth over the next five years. The plan includes targets for increased net sales, profit, and store numbers, alongside strategies to enhance brand recognition and establish new revenue streams, positioning the company as a dominant player in the Japanese restaurant sector.

SRS HOLDINGS Unveils DX Promotion Strategy for 2030

SRS HOLDINGS CO., LTD. announced the formulation of the ‘SRS DX Promotion Declaration 2030’ as part of its strategy to achieve the goals of its ‘SRS VISION 2030’ plan. This initiative aims to address labor shortages and operational challenges in the food and beverage industry by leveraging AI and automation to enhance service quality and ensure sustainable business operations. The company seeks to strengthen its position as a vital social infrastructure for food by adopting digital transformation strategies to support significant business growth and establish a new earnings base.

SRS HOLDINGS Reports 2025 Financial Results and 2026 Forecast

SRS HOLDINGS CO., LTD. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 12% increase in net sales to 67,478 million yen. Despite this growth, the profit attributable to owners of the parent decreased by 48.5% to 925 million yen. The company also announced a forecast for the fiscal year ending March 31, 2026, expecting net sales to rise by 12.6% and a significant 72.8% increase in profit attributable to owners of the parent, indicating a positive outlook for future performance.