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

• Market Cap: ¥51.19B
• Dividend Yield: 0.6%
• Average Volume (3M): 68.33K
• Price to Earnings (P/E): 55.3
• Beta (1Y): 0.45
• Revenue Growth: 12.04%
• EPS Growth: -48.52%
• Country: JP
• Employees: 1,384
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Restaurants
• EPS (TTM): 22.39
• Shares Outstanding: 41,470,184
• 10 Day Avg. Volume: 107,060
• 30 Day Avg. Volume: 68,333
• PEG Ratio: -2.45
• Price to Book (P/B): 3.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,304.00 ▲(5.33%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 Japan-based company primarily engaged in the restaurant business. The company operates a variety of restaurant brands, focusing on providing high-quality food and dining experiences. Its portfolio includes a diverse range of restaurants that cater to different customer preferences, from casual dining to more specialized cuisines. SRS HOLDINGS aims to deliver value through its commitment to quality and customer satisfaction.

How the Company Makes Money

SRS HOLDINGS CO.,LTD. generates revenue primarily through its restaurant operations by offering a wide array of food and beverage services. The company earns money by serving meals and drinks to customers at its various restaurant outlets. Additionally, SRS HOLDINGS might have partnerships with suppliers to ensure quality ingredients, contributing to efficient operations and cost management. Its revenue streams are driven by customer footfall, menu pricing, and the overall dining experience, which help in maintaining its market presence and profitability.

SRS HOLDINGS CO.,LTD. Financial Statement Overview

Summary

SRS HOLDINGS CO.,LTD. is showing strong revenue growth and improving profitability, indicating a positive trajectory. The balance sheet is stable with manageable debt levels, although cash flow management needs attention. Continued focus on operational efficiency and cash flow generation will be crucial for sustaining growth and profitability.

Income Statement

SRS HOLDINGS CO.,LTD. has shown impressive revenue growth with a TTM revenue of ¥64.96 billion, up from ¥60.23 billion in the previous year, marking a growth rate of approximately 7.5%. The company has successfully increased its gross profit margin to 66.1% and its net profit margin to 2.76%, indicating a strong recovery from previous losses. However, the company has experienced fluctuations in EBIT and EBITDA margins, suggesting some operational challenges.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.05, showing an improvement from previous levels. The equity ratio stands at 35.9%, indicating a stable capital structure. Return on equity is relatively low at 10.7%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

The cash flow statements show a lack of reported free cash flow in the TTM, which raises concerns about cash management. Previously, the company had managed a free cash flow of ¥1.51 billion. The absence of operating cash flow data in the latest period makes it difficult to assess operational efficiency fully.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	64.96B	60.23B	54.51B	42.89B	43.71B	44.64B
Gross Profit	42.93B	39.44B	35.51B	27.72B	28.17B	29.12B
EBITDA	4.38B	3.86B	332.16M	3.88B	-2.21B	-94.90M
Net Income	1.79B	1.80B	-1.45B	1.57B	-4.07B	-2.49B
Balance Sheet
Total Assets	35.73B	35.73B	34.37B	35.49B	31.00B	32.92B
Cash, Cash Equivalents and Short-Term Investments	12.37B	12.37B	12.15B	12.83B	9.43B	8.88B
Total Debt	10.30B	10.30B	11.45B	12.65B	14.25B	12.06B
Total Liabilities	19.57B	19.57B	20.31B	21.10B	21.01B	20.12B
Stockholders Equity	15.74B	15.74B	13.72B	14.11B	9.79B	12.65B
Cash Flow
Free Cash Flow	0.00	1.51B	94.38M	2.82B	-4.68B	-1.23B
Operating Cash Flow	0.00	3.73B	2.08B	4.71B	-3.53B	1.24B
Investing Cash Flow	0.00	-2.29B	-2.80B	-1.86B	882.82M	-4.46B
Financing Cash Flow	0.00	-1.22B	-31.00M	550.28M	3.20B	2.75B

SRS HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1238.00
• 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:8163, the sentiment is Positive. The current price of 1238 is above the 20-day moving average (MA) of 1217.25, above the 50-day MA of 1204.62, and above the 200-day MA of 1185.01, indicating a bullish trend. The MACD of 9.08 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 86.16 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	72 Outperform	¥55.34B	17.85		0.11%	28.23%	67.30%
3198	70 Outperform	¥51.33B	34.54		1.16%	4.50%	-10.16%
8163	67 Neutral	¥51.19B	55.30		0.60%	12.04%	-48.52%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%
9900	60 Neutral	¥51.91B	38.14		0.58%	12.99%	49.09%
3196	58 Neutral	¥43.25B	33.92		0.65%	16.40%	-14.88%
3395	56 Neutral	¥50.68B	18.73		2.25%	9.82%	159.81%

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.