Tokyo Kaikan Co., Ltd. (9701) AI Stock Analysis

• Market Cap: ¥15.22B
• Dividend Yield: 0.73%
• Average Volume (3M): 796.00
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.21
• Revenue Growth: 3.35%
• EPS Growth: -41.97%
• Country: JP
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 157.80
• Shares Outstanding: 3,463,943
• 10 Day Avg. Volume: 800
• 30 Day Avg. Volume: 796
• PEG Ratio: -0.35
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 8.58
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥4,942.00 ▲(25.59% Upside)
• Action: Reiterated Date: 08/08/25
• Date: Action: Reiterated 08/08/25

Tokyo Kaikan Co., Ltd. benefits from strong financial performance with robust revenue growth and profitability. Technical indicators are neutral, and valuation metrics suggest a fair market price. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Sustained revenue recovery from 2023–2025 indicates demand resilience for banquet, wedding and catering services. Durable top-line growth supports capacity utilization, margin leverage and reinvestment in venues, underpinning multi-quarter operating stability and organic expansion.

Improving Profitability

Consistent improvement in gross and net margins shows effective cost control and pricing power in core hospitality operations. Higher margins create durable earnings power, enabling reinvestment, dividend capacity and cushioning against cyclical demand swings over the next several quarters.

Balanced Capital Structure

An improving debt-to-equity profile and stable equity base enhance financial flexibility for capital projects and seasonal working capital. This structural improvement lowers refinancing risk and supports measured strategic investments in facilities and service offerings.

Negative Factors

Free Cash Flow Volatility

Volatile free cash flow tied to uneven capex cycles can constrain discretionary spending and limit the firm's ability to consistently fund store upgrades or new venues without tapping financing. This variability raises execution risk for multi-quarter strategic plans.

Earnings Per Share Decline

A material EPS contraction reflects earnings volatility and potential sensitivity to cost or demand shocks. Continued EPS weakness would limit retained earnings accumulation and could reduce strategic flexibility for M&A, capex or shareholder returns over a medium-term horizon.

Limited Liquidity

Low average trading volume suggests limited market liquidity, which can deter large institutional investors and make equity raises or secondary offerings more difficult. Reduced liquidity also raises transaction costs and can complicate timely capital allocation decisions.

Tokyo Kaikan Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyo Kaikan Co., Ltd. (9701) is a prominent company based in Japan, primarily operating in the hospitality and event management sectors. The company focuses on providing high-quality banquet services, dining experiences, and various event venues, catering to both corporate and private clients. With a strong emphasis on customer satisfaction and premium service, Tokyo Kaikan has established itself as a key player in the Japanese hospitality industry.

How the Company Makes Money

Tokyo Kaikan generates revenue through several key streams: primarily, it earns income from hosting events, such as weddings, corporate meetings, and private parties, at its various banquet facilities. Additionally, the company profits from its dining services, offering fine dining experiences to guests. The company may also engage in partnerships with businesses and organizations for co-hosted events, which can provide additional income. Moreover, Tokyo Kaikan could benefit from seasonal promotions and packages that attract a larger clientele, enhancing its overall revenue generation.

Tokyo Kaikan Co., Ltd. Financial Statement Overview

Summary

Tokyo Kaikan Co., Ltd. demonstrates strong revenue growth and profitability improvements, with effective cost management and operational efficiency. The balance sheet is stable with improving leverage ratios, though cash flow consistency could be enhanced.

Income Statement

Tokyo Kaikan Co., Ltd. shows a strong recovery in revenue with a significant growth rate in recent years, especially from 2023 to 2025. The gross profit margin has consistently improved, indicating better cost management. Net profit margin has also shown a positive trend, recovering from losses to solid profitability. EBIT and EBITDA margins are robust, reflecting efficient operational performance.

Balance Sheet

The company's balance sheet displays a stable equity base, with an improving debt-to-equity ratio over time. The return on equity has improved significantly, indicating effective use of shareholder funds. The equity ratio suggests a balanced structure between equity and debt, although there is room for reducing leverage further.

Cash Flow

Cash flow statements reveal a positive trajectory in operating cash flow, with a strong operating cash flow to net income ratio. However, free cash flow growth is volatile, reflecting varying capital expenditures. The free cash flow to net income ratio is healthy, but consistency in free cash flow generation would enhance financial stability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.27B	14.88B	12.89B	8.40B	4.03B
Gross Profit	2.18B	1.92B	1.02B	-930.87M	-2.64B
EBITDA	2.18B	1.76B	1.21B	1.98B	-2.16B
Net Income	889.49M	1.54B	249.54M	844.66M	-3.22B
Balance Sheet
Total Assets	27.50B	26.43B	25.22B	24.94B	23.25B
Cash, Cash Equivalents and Short-Term Investments	6.71B	6.01B	4.72B	4.44B	2.40B
Total Debt	12.63B	12.96B	13.43B	13.89B	11.66B
Total Liabilities	16.54B	16.83B	17.69B	17.82B	16.98B
Stockholders Equity	10.96B	9.60B	7.53B	7.12B	6.27B
Cash Flow
Free Cash Flow	1.52B	1.79B	1.03B	-2.14B	-1.29B
Operating Cash Flow	1.57B	1.94B	1.07B	-2.01B	-1.26B
Investing Cash Flow	-1.88B	-624.79M	-333.60M	1.81B	2.23B
Financing Cash Flow	-796.42M	-517.37M	-465.25M	2.24B	-286.45M

Tokyo Kaikan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3935.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9701, the sentiment is Positive. The current price of 3935 is below the 20-day moving average (MA) of 4547.25, below the 50-day MA of 4417.60, and below the 200-day MA of 4050.60, indicating a bullish trend. The MACD of 50.44 indicates Positive momentum. The RSI at 55.88 is Neutral, neither overbought nor oversold. The STOCH value of 49.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9701.

Tokyo Kaikan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9701	66 Neutral	¥15.22B	15.03	―	0.73%	3.35%	-41.97%
3082	64 Neutral	¥10.17B	36.80	―	0.78%	10.30%	1.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3547	60 Neutral	¥22.30B	25.43	―	0.75%	25.41%	77.18%
3418	56 Neutral	¥11.86B	25.84	―	0.74%	6.26%	-4.84%
3175	52 Neutral	¥12.61B	17.01	―	―	3.90%	―
3053	48 Neutral	¥11.12B	-94.72	―	―	1.54%	-18.59%