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Royal Holdings Co
(8179)
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Rating:65Neutral
Price Target:
¥1,422.00
▲(12.77% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by improving financial performance (strong revenue and operating-profit recovery with high gross margins), tempered by thin net margins and weaker cash conversion. Technicals are moderately constructive in the short term but not strong across longer-term averages. Valuation is a headwind with a ~22x P/E and only a ~1.3% dividend yield.
Positive Factors
High Gross Margin
A sustained ~70.9% gross margin indicates strong unit economics and pricing power versus peers. This large gross buffer supports operating leverage, helps absorb commodity or labor cost swings, and underpins durable profitability even if revenue growth moderates.
Negative Factors
Thin Net Margins
Despite strong gross and improving operating margins, a net margin of ~3.5% shows non‑operating costs, interest, taxes, or one-offs materially erode profitability. This limits retained earnings, reduces resilience to shocks, and constrains the firm's ability to fund growth or cushions.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin
A sustained ~70.9% gross margin indicates strong unit economics and pricing power versus peers. This large gross buffer supports operating leverage, helps absorb commodity or labor cost swings, and underpins durable profitability even if revenue growth moderates.
Read all positive factors
Royal Holdings Co (8179) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥127.08B
Dividend Yield1.34%
Average Volume (3M)96.63K
Price to Earnings (P/E)21.8
Beta (1Y)0.27
Revenue Growth6.72%
EPS Growth18.77%
CountryJP
Employees2,383
SectorGeneral
Sector StrengthN/A
IndustryRestaurants
Share Statistics
EPS (TTM)59.65
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., Ltd., a Tokyo-headquartered enterprise established in 1950, oversees an extensive hospitality and food service network across Japan via its various subsidiaries. The company's operations are divided into several key areas: rest...
How the Company Makes Money
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Royal Holdings Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 168.97B | 165.50B | 152.15B | 138.94B | 104.02B | 83.97B |
| Gross Profit | 119.80B | 109.80B | 100.31B | 90.90B | 69.38B | 53.61B |
| EBITDA | 22.35B | 15.95B | 14.12B | 12.29B | 7.04B | -2.14B |
| Net Income | 5.88B | 5.66B | 5.92B | 4.04B | 2.75B | -2.87B |
Balance Sheet | ||||||
| Total Assets | 133.76B | 139.76B | 127.74B | 125.87B | 123.57B | 109.77B |
| Cash, Cash Equivalents and Short-Term Investments | 15.44B | 19.55B | 19.36B | 26.39B | 25.65B | 23.11B |
| Total Debt | 47.01B | 53.46B | 49.98B | 51.20B | 55.42B | 59.03B |
| Total Liabilities | 76.97B | 84.28B | 77.26B | 78.05B | 78.76B | 75.76B |
| Stockholders Equity | 56.18B | 54.73B | 50.25B | 47.82B | 44.29B | 34.00B |
Cash Flow | ||||||
| Free Cash Flow | 6.68B | 6.02B | 3.22B | 7.46B | 5.38B | -3.91B |
| Operating Cash Flow | 15.21B | 15.78B | 10.36B | 12.54B | 7.39B | -1.89B |
| Investing Cash Flow | -15.61B | -16.66B | -9.84B | -6.59B | -8.55B | 2.06B |
| Financing Cash Flow | -12.94B | 774.00M | -7.74B | -5.20B | 3.70B | 9.07B |
Royal Holdings Co Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥366.03B | 30.48 | 9.75% | 0.55% | 16.06% | 12.26% | |
65 Neutral | ¥127.08B | 21.83 | 10.63% | 1.35% | 6.72% | 18.77% | |
62 Neutral | ¥351.92B | 68.04 | ― | 0.56% | 4.40% | -17.52% | |
61 Neutral | ¥741.20B | 38.90 | 9.69% | 0.78% | 11.29% | 22.50% | |
60 Neutral | ¥1.79T | 35.29 | 15.79% | 0.78% | 11.88% | 45.16% | |
60 Neutral | ¥218.89B | 108.34 | ― | 0.29% | 16.41% | 267.75% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:8179
Royal Holdings Co
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Royal Holdings Co Corporate Events
Royal Holdings Delivers Strong First-Half Earnings and Confirms Full-Year Outlook
Aug 7, 2026
Royal Holdings reported consolidated net sales of ¥82.3 billion for the six months ended June 30, 2026, up 4.4% year on year, with operating profit rising 3.8% to ¥3.3 billion and profit attributable to owners of parent climbing 10.8% to...
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...
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.