Genki Sushi Co., Ltd. (9828) AI Stock Analysis

• Market Cap: ¥54.90B
• Dividend Yield: 2.41%
• Average Volume (3M): 41.84K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.69
• Revenue Growth: 6.49%
• EPS Growth: 4.27%
• Country: JP
• Employees: 595
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 17,765,816
• 10 Day Avg. Volume: 35,350
• 30 Day Avg. Volume: 41,840
• PEG Ratio: 0.23
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 12.16
• 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): 271.8
• Revenue Forecast (FY): ¥72.50B

• Rating: 72 Outperform
• Price Target: ¥3,424.00 ▲(9.22% Upside)

Genki Sushi Co., Ltd. demonstrates strong financial performance, particularly in revenue growth and profitability, which is the most significant factor. The technical analysis indicates mild bullish momentum, while the valuation suggests the stock is reasonably priced. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand and effective market penetration, supporting long-term business expansion and competitive positioning.

Profitability

Strong profit margins reflect efficient cost management and pricing strategy, which can sustain profitability and provide a buffer against economic fluctuations.

Balance Sheet Health

Improved leverage and a solid equity position enhance financial stability and flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow may limit the company's ability to fund new projects or expand operations, potentially hindering long-term growth prospects.

Operational Efficiency Pressure

Decreasing operational efficiency could signal rising costs or competitive pressures, which may affect profitability if not addressed.

Historical High Leverage Risk

Past high leverage levels can indicate potential financial risk, requiring vigilant management to prevent future financial strain.

Genki Sushi Co., Ltd. Business Overview & Revenue Model

Company Description

Genki Sushi Co., Ltd. (9828) is a Japan-based company that specializes in the sushi and Japanese cuisine sector. The company operates a chain of conveyor belt sushi restaurants, providing a unique dining experience where customers can select dishes as they pass by on a conveyor belt. Genki Sushi is known for its focus on fresh, high-quality ingredients and innovative technology in food delivery, appealing to a broad customer base seeking affordable yet authentic sushi dining options.

How the Company Makes Money

Genki Sushi generates revenue primarily through the sale of food and beverages in its restaurants. The company's business model is centered around its conveyor belt sushi concept, which allows for a high turnover of customers and efficient service. Key revenue streams include dine-in sales, takeout orders, and catering services. Additionally, Genki Sushi may benefit from partnerships with suppliers for sourcing fresh seafood and ingredients, which can help manage costs and maintain quality. Marketing campaigns and loyalty programs also contribute to customer retention and increased sales, driving overall profitability.

Genki Sushi Co., Ltd. Financial Statement Overview

Summary

Genki Sushi Co., Ltd. exhibits strong financial health with robust revenue and profit growth, efficient operations, and a stable balance sheet. While the company has managed its leverage well, continued focus on cash flow management and debt reduction will be crucial for sustaining long-term growth and stability.

Income Statement

Genki Sushi Co., Ltd. has demonstrated strong revenue growth over recent years, with a notable increase in gross profit margins and net profit margins. The company has maintained a healthy EBIT and EBITDA margin, indicating efficient operations and profitability. The TTM data shows continued growth, albeit at a slower pace, suggesting a mature growth phase.

Balance Sheet

The company's balance sheet reflects a stable financial position with a decreasing debt-to-equity ratio over time, indicating improved leverage management. Return on equity has shown a positive trend, reflecting effective use of shareholder funds. The equity ratio suggests a balanced asset structure, though there is room for improvement in reducing debt levels further.

Cash Flow

Genki Sushi's cash flow performance is solid, with consistent operating cash flow generation. However, the recent decline in free cash flow growth is a concern, though the company maintains a healthy free cash flow to net income ratio. The operating cash flow to net income ratio indicates efficient cash conversion, but monitoring is required to ensure sustainable cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.88B	67.47B	61.84B	54.61B	44.61B	38.25B
Gross Profit	40.37B	40.22B	36.40B	31.06B	25.65B	22.63B
EBITDA	7.88B	8.63B	6.87B	3.66B	3.70B	1.41B
Net Income	4.49B	4.96B	3.26B	1.01B	1.30B	-443.06M
Balance Sheet
Total Assets	33.92B	34.81B	32.77B	30.76B	26.91B	23.94B
Cash, Cash Equivalents and Short-Term Investments	11.27B	11.95B	10.55B	7.69B	7.00B	5.26B
Total Debt	6.14B	9.26B	10.12B	12.38B	11.15B	10.36B
Total Liabilities	15.46B	17.75B	19.24B	20.46B	17.61B	15.85B
Stockholders Equity	18.46B	17.06B	13.54B	10.30B	9.30B	8.10B
Cash Flow
Free Cash Flow	3.55B	4.92B	5.09B	2.67B	2.59B	45.12M
Operating Cash Flow	5.69B	6.79B	6.22B	4.68B	4.03B	1.60B
Investing Cash Flow	-2.17B	-1.77B	-906.26M	-2.19B	-1.85B	-2.08B
Financing Cash Flow	-3.31B	-3.58B	-2.60B	-1.86B	-509.25M	2.22B

Genki Sushi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3135.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9828, the sentiment is Neutral. The current price of 3135 is above the 20-day moving average (MA) of 3079.75, above the 50-day MA of 3056.18, and below the 200-day MA of 3462.58, indicating a neutral trend. The MACD of 7.27 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 85.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9828.

Genki Sushi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9828	72 Outperform	¥54.90B	12.22	―	2.41%	6.49%	4.27%
8153	70 Outperform	¥131.05B	31.35	―	0.70%	5.15%	47.13%
8160	63 Neutral	¥71.00B	17.96	―	1.89%	1.49%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8200	59 Neutral	¥58.82B	51.79	―	0.56%	7.52%	3.37%
7421	58 Neutral	¥77.46B	59.95	―	0.32%	0.51%	4.92%
2695	58 Neutral	¥128.49B	35.27	―	0.63%	4.32%	11.78%