Royal Holdings Co Ltd (JP:8179)
:8179
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Royal Holdings Co
(8179)
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Rating:58Neutral
Price Target:
¥1,426.00
▼(-47.13% Downside)
Action:Reiterated
Date:05/15/26
The score is primarily driven by mixed financial performance: profitability has improved and the recovery is evident, but leverage remains meaningful and free-cash-flow conversion/coverage is weak. Technical indicators are notably bearish with the price below key moving averages and negative MACD, which weighs on the rating. Valuation is reasonable (mid-teens P/E) with a modest dividend yield, providing some support but not enough to offset the weaker technicals and cash-flow quality.
Positive Factors
High gross margins
Sustained gross margins near the high 60s–70s percent indicate robust unit economics and pricing power at the product or menu level. This structural margin cushion helps absorb labor and commodity cost pressures, supports store-level profitability and funds reinvestment even if top-line growth softens.
Negative Factors
Meaningful leverage
Debt near parity with equity leaves the company exposed to higher interest costs or revenue shocks; it constrains strategic flexibility for M&A or rapid store rollouts. In a sector sensitive to traffic and input-cost swings, this capital structure raises the risk of constrained financial maneuverability through cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near the high 60s–70s percent indicate robust unit economics and pricing power at the product or menu level. This structural margin cushion helps absorb labor and commodity cost pressures, supports store-level profitability and funds reinvestment even if top-line growth softens.
Read all positive factors
Royal Holdings Co (8179) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥128.54B
Dividend Yield1.17%
Average Volume (3M)96.63K
Price to Earnings (P/E)38.6
Beta (1Y)0.38
Revenue Growth8.30%
EPS Growth5.03%
CountryJP
Employees2,056
SectorServices
Sector StrengthN/A
IndustryRestaurants
Share Statistics
EPS (TTM)57.18
Shares Outstanding99,723,724
10 Day Avg. Volume97,880
30 Day Avg. Volume96,630
Financial Highlights & Ratios
PEG Ratio-5.06
Price to Book (P/B)2.37
Price to Sales (P/S)0.78
P/FCF Ratio21.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)58.4
Revenue Forecast (FY)¥174.65B
Royal Holdings Co Business Overview & Revenue Model
Company Description
Royal Holdings Co (8179) is a diversified investment company based in Japan, primarily engaged in real estate development, property management, and investment activities. The company operates across various sectors, including residential, commerci...
How the Company Makes Money
Royal Holdings Co primarily makes money by generating sales from its restaurant operations, including dine-in and other food service channels operated under its brands. Revenue is driven by customer spending on meals and beverages, with performanc...
Royal Holdings Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 167.73B | 165.50B | 152.15B | 138.94B | 104.02B | 83.97B |
| Gross Profit | 118.96B | 109.80B | 100.31B | 90.90B | 69.38B | 53.61B |
| EBITDA | 21.94B | 15.95B | 14.12B | 12.29B | 7.04B | -2.14B |
| Net Income | 5.63B | 5.66B | 5.92B | 4.04B | 2.75B | -2.87B |
Balance Sheet | ||||||
| Total Assets | 132.79B | 139.76B | 127.74B | 125.87B | 123.57B | 109.77B |
| Cash, Cash Equivalents and Short-Term Investments | 14.46B | 19.55B | 19.36B | 26.39B | 25.65B | 23.11B |
| Total Debt | 47.38B | 53.46B | 49.98B | 51.20B | 55.42B | 59.03B |
| Total Liabilities | 78.00B | 84.28B | 77.26B | 78.05B | 78.76B | 75.76B |
| Stockholders Equity | 54.29B | 54.73B | 50.25B | 47.82B | 44.29B | 34.00B |
Cash Flow | ||||||
| Free Cash Flow | 5.30B | 6.02B | 3.22B | 7.46B | 5.38B | -3.91B |
| Operating Cash Flow | 14.07B | 15.78B | 10.36B | 12.54B | 7.39B | -1.89B |
| Investing Cash Flow | -15.70B | -16.66B | -9.84B | -6.59B | -8.55B | 2.06B |
| Financing Cash Flow | -8.27B | 774.00M | -7.74B | -5.20B | 3.70B | 9.07B |
Royal Holdings Co Technical Analysis
Neutral
2697.00
Price Trends
1465.62
Negative
1401.41
Positive
1362.47
Positive
Market Momentum
-3.97
Positive
45.11
Neutral
15.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8179, the sentiment is Neutral. The current price of 2697 is above the 20-day moving average (MA) of 1461.55, above the 50-day MA of 1465.62, and above the 200-day MA of 1362.47, indicating a neutral trend. The MACD of -3.97 indicates Positive momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 15.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8179.
Royal Holdings Co Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | ¥250.36B | 33.85 | 9.66% | 0.55% | 15.12% | 18.16% | |
64 Neutral | ¥198.27B | 86.37 | ― | 0.29% | 11.49% | 50.64% | |
61 Neutral | ¥656.23B | 35.05 | 9.53% | 0.55% | 12.02% | 20.18% | |
58 Neutral | ¥128.54B | 38.61 | 9.66% | 1.17% | 8.30% | 5.03% | |
56 Neutral | ¥1.22T | 31.37 | 15.36% | 0.78% | 11.21% | 9.99% | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% | |
55 Neutral | ¥307.07B | 212.33 | ― | 0.56% | 5.82% | -16.39% |
* Services Sector Average
JP:8179
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Royal Holdings Co Corporate Events
Royal Holdings Posts Higher Sales but Softer Profits, Affirms 2026 Growth Outlook
May 14, 2026
Royal Holdings reported a 5.8% year-on-year rise in net sales to ¥40.6 billion for the quarter ended 31 March 2026, but operating profit edged down 1.8% to ¥1.57 billion and ordinary profit fell 11.3%, leaving profit attributable to owne...
Royal Holdings Posts Higher Q1 Sales but Softer Profits, Affirms 2026 Outlook
May 14, 2026
Royal Holdings reported consolidated net sales of ¥40.6 billion for the first quarter ended March 31, 2026, up 5.8% year on year, while operating profit edged down 1.8% to ¥1.57 billion and profit attributable to owners of parent slipped...
Royal Holdings Details Governance and Alliance Structure with Major Shareholder Sojitz
Mar 19, 2026
Royal Holdings has detailed its relationship with Sojitz Corporation, which owns 19.9% of its voting rights and is classified as an other affiliated company and largest shareholder. Under a capital and business alliance, Sojitz positions Royal Hol...
Royal Holdings revamps board, adds Sojitz executive as outside director
Feb 16, 2026
Royal Holdings Co., Ltd. has announced a series of leadership changes, including the retirement of Representative Director and Chairperson Tadao Kikuchi from his representative role, after which he will serve as Chairman of the Board without repre...
Royal Holdings Lifts 2025 Dividend, Affirms Stable Payout Post Stock Split
Feb 16, 2026
Royal Holdings will raise its year-end dividend for the fiscal year ended December 31, 2025 to 35 yen per common share, up from both the prior-year level and its earlier forecast, resulting in a total payout of 1,740 million yen from retained earn...
Royal Holdings Boosts Core Income but Net Profit Drops on Lapsed One-Off Gain
Feb 16, 2026
Royal Holdings reported a sharp rise in non-consolidated operating revenue and profits for the fiscal year ended December 31, 2025, driven mainly by higher dividend income from consolidated subsidiaries and increased royalty income. Operating reve...
Royal Holdings Unveils 2025 Results and 2026 Forecast
Feb 16, 2026
Royal Holdings Co., Ltd. has released its financial results for the fiscal year ended December 31, 2025, outlining the performance of its food and hospitality operations. The company also presented its earnings forecast for the 2026 fiscal year, g...
Royal Holdings lifts sales and dividend, eyes profit growth after stock split
Feb 16, 2026
Royal Holdings Co., Ltd. reported consolidated net sales of ¥165.5 billion for the fiscal year ended December 31, 2025, an 8.8% increase year on year, with operating profit up 4.3% to ¥7.7 billion and ordinary profit up 8.2% to ¥7.9...
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.