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

• Market Cap: ¥14.75B
• Dividend Yield: 0.73%
• Average Volume (3M): 796.00
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.19
• 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: ¥4,758.00 ▲(20.91% Upside)

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 recovery & growth

Tokyo Kaikan has shown a sustained revenue recovery since 2023 with notable growth into 2025, moving from losses to solid net profitability. Durable demand for banquets, weddings and contracted catering supports multi-quarter revenue visibility and scale benefits.

Improving margins

Consistent improvement in gross and operating margins signals better cost control and pricing discipline. Higher EBIT/EBITDA margins enhance operating leverage, supporting durable cash generation and resilience across business cycles in hospitality services.

Balance sheet stability

A stable equity base and improving debt-to-equity ratio indicate strengthening financial structure. Improved ROE suggests effective capital use, providing room to fund targeted investments, weather demand lulls, and maintain operational continuity without aggressive external funding.

Negative Factors

Free cash flow volatility

Volatile free cash flow, driven by varying capex, reduces predictability of internally funded growth, dividends or debt paydown. Inconsistent FCF weakens financial flexibility and increases reliance on timing of capital expenditures and working capital cycles.

EPS contraction

Material negative EPS growth highlights earnings volatility and potential margin pressure at the per-share level. Persistent EPS declines can impair reinvestment capacity and investor confidence, and may reflect one-offs, cost structure limits, or slower per-unit profitability.

Leverage reduction needed

Although leverage metrics are improving, the balance sheet commentary notes remaining leverage headroom to reduce. Elevated leverage limits strategic flexibility, raises interest sensitivity, and can constrain M&A, capex plans or dividend consistency in a rising rate environment.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 3935.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9701, the sentiment is Neutral. The current price of 3935 is below the 20-day moving average (MA) of 4449.50, below the 50-day MA of 4243.90, and below the 200-day MA of 3989.38, indicating a neutral trend. The MACD of 63.22 indicates Positive momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 8.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥14.75B	14.57	―	0.73%	3.35%	-41.97%
3082	64 Neutral	¥10.16B	26.84	―	0.78%	10.30%	1.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3547	60 Neutral	¥19.70B	22.46	―	0.75%	25.41%	77.18%
3418	56 Neutral	¥11.74B	25.58	―	0.74%	6.26%	-4.84%
3175	52 Neutral	¥12.51B	23.89	―	―	3.90%	―
3053	44 Neutral	¥10.32B	-85.34	―	―	1.54%	-18.59%