Totenko Co., Ltd. (8181) AI Stock Analysis

• Market Cap: ¥2.73B
• Dividend Yield: 1.41%
• Average Volume (3M): 7.04K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.47
• Revenue Growth: 3.77%
• EPS Growth: 205.69%
• Country: JP
• Employees: 314
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): 58.56
• Shares Outstanding: 2,572,871
• 10 Day Avg. Volume: 5,440
• 30 Day Avg. Volume: 7,040
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥975.00
• Price Target Upside: -8.19% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥975.00 ▼(-8.19% Downside)

Totenko Co., Ltd. demonstrates strong financial performance with a positive turnaround, attractive valuation metrics, and moderate technical stability. The low P/E ratio and solid cash flow generation underscore its investment potential. Sustaining recent financial gains amidst market conditions is key for future success.

Positive Factors

Revenue Growth

The company's return to revenue growth indicates a recovery from previous declines, suggesting improved market positioning and customer engagement.

Margin Improvement

Enhanced profit margins reflect effective cost management and operational efficiency, which can support sustainable profitability and competitive advantage.

Cash Flow Generation

Strong cash flow generation provides a solid foundation for future investments, debt reduction, and financial flexibility, supporting long-term growth.

Negative Factors

Sustainability of Performance

While recent performance is strong, maintaining these gains in a competitive and changing market environment poses a challenge, impacting long-term stability.

Industry Challenges

The restaurant industry faces structural challenges such as changing consumer preferences and cost pressures, which could affect Totenko's ability to sustain growth.

Balance Sheet Risks

Despite a strong equity position, the ability to maintain financial performance trends is uncertain, posing risks to financial stability and growth potential.

Totenko Co., Ltd. Business Overview & Revenue Model

Company Description

Totenko Co., Ltd. (8181) is a Japanese company primarily engaged in the restaurant industry, with a focus on operating Chinese cuisine restaurants. The company is renowned for its traditional and authentic Chinese dishes, offering a wide range of menu items that cater to diverse customer preferences. Totenko Co., Ltd. strives to deliver high-quality food and exceptional dining experiences through its strategically located restaurants across Japan.

How the Company Makes Money

Totenko Co., Ltd. generates revenue primarily through its chain of Chinese cuisine restaurants. The company's main source of income is the sale of food and beverages to customers dining at their establishments. Totenko Co., Ltd. may also earn additional revenue through catering services, private dining events, and possibly through franchising opportunities if applicable. Significant partnerships with suppliers ensure the availability of fresh and authentic ingredients, contributing to the quality and appeal of their menu offerings. The company's earnings are influenced by factors such as location, brand reputation, customer loyalty, and seasonal dining trends.

Totenko Co., Ltd. Financial Statement Overview

Summary

Totenko Co., Ltd. has shown a commendable turnaround in its financial performance with solid revenue growth, improved margins, a stable balance sheet, and robust cash flow generation. The transition to profitability and effective management strategies are notable, though sustaining this performance amidst industry challenges remains crucial.

Income Statement

Totenko Co., Ltd. has demonstrated a strong recovery in its financial performance. The company reported a significant revenue growth rate of 0.67% in 2025 compared to 2024, recovering from prior years of declining revenue. Gross profit margin improved as well, reaching 55.38% in 2025. The net profit margin also turned positive at 9.13%, indicating profitability after multiple years of losses. The EBIT and EBITDA margins improved to 10.40% and 15.86%, respectively, showing effective cost management and operational efficiency.

Balance Sheet

The balance sheet displays moderate strength with a debt-to-equity ratio of 0.45 in 2025, indicating a reasonable level of leverage. Return on equity (ROE) improved to 6.43%, reflecting better utilization of shareholder funds compared to previous losses. The equity ratio stands at 61.38%, signifying a strong equity position relative to total assets, which supports financial stability. Despite improvements, potential risks include the company's ability to maintain this performance trend.

Cash Flow

Cash flow metrics reflect strong cash generation capabilities. Operating cash flow to net income ratio improved, indicating efficient conversion of profits into cash. The free cash flow growth rate was robust at 28.88%, driven by improved operational performance and disciplined capital expenditure. The free cash flow to net income ratio suggests strong cash generation relative to reported profits, providing a solid base for future investments or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.51B	4.71B	4.68B	3.70B	2.00B	1.61B
Gross Profit	2.63B	2.61B	2.61B	1.93B	919.99M	570.97M
EBITDA	-260.78M	746.76M	111.02M	-507.46M	-592.50M	-1.66B
Net Income	-515.04M	430.07M	-134.75M	-828.40M	-946.93M	-1.94B
Balance Sheet
Total Assets	10.49B	10.90B	10.51B	10.76B	11.22B	12.18B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.66B	1.22B	727.28M	549.52M	609.23M
Total Debt	3.22B	3.02B	3.19B	3.24B	2.72B	2.54B
Total Liabilities	4.44B	4.21B	4.31B	4.44B	4.09B	4.11B
Stockholders Equity	6.04B	6.69B	6.21B	6.32B	7.12B	8.07B
Cash Flow
Free Cash Flow	499.58M	633.90M	491.61M	-253.50M	-501.41M	-1.42B
Operating Cash Flow	499.58M	726.77M	522.76M	-252.47M	-497.44M	-1.33B
Investing Cash Flow	0.00	-111.66M	18.60M	-87.35M	260.23M	-178.78M
Financing Cash Flow	0.00	-177.53M	-47.28M	517.58M	177.50M	1.48B

Totenko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1062.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8181, the sentiment is Positive. The current price of 1062 is above the 20-day moving average (MA) of 1012.45, above the 50-day MA of 955.52, and above the 200-day MA of 887.15, indicating a bullish trend. The MACD of 27.73 indicates Negative momentum. The RSI at 69.72 is Neutral, neither overbought nor oversold. The STOCH value of 62.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8181.

Totenko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8181	75 Outperform	¥2.73B	5.92		1.41%	3.77%	205.69%
3223	75 Outperform	¥1.54B	12.14		―	2.16%	-18.26%
2789	73 Outperform	¥2.84B	8.59		1.06%	5.85%	-26.82%
3077	67 Neutral	¥2.42B	10.47		―	4.26%	73.63%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
3358	61 Neutral	¥3.36B	171.69		―	3.29%	-46.50%
2762	46 Neutral	¥3.77B	―		―	3.76%	3.77%