GOURMET KINEYA CO., LTD. (9850) AI Stock Analysis

• Market Cap: ¥22.26B
• Dividend Yield: 0.62%
• Average Volume (3M): 29.23K
• Price to Earnings (P/E): 64.9
• Beta (1Y): 0.40
• Revenue Growth: 7.64%
• EPS Growth: -65.84%
• Country: JP
• Employees: 966
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 7.74
• Shares Outstanding: 22,910,275
• 10 Day Avg. Volume: 25,440
• 30 Day Avg. Volume: 29,226
• PEG Ratio: -0.88
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 84.58
• 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: 52 Neutral
• Price Target: ¥991.00 ▲(3.34% Upside)

Gourmet Kineya is on a recovery path with improving financial performance, but the stock faces challenges with its high valuation and bearish technical indicators. The company's ability to manage its liabilities and maintain profitability will be crucial for future performance.

Positive Factors

Revenue Growth

The company's strong sales growth indicates robust demand for its offerings, enhancing its market position and supporting long-term revenue expansion.

Cash Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in business operations and strategic initiatives, supporting sustainable growth.

Management Changes

Leadership changes can bring fresh perspectives and strategies, potentially improving operational efficiency and guiding the company towards long-term success.

Negative Factors

High Liabilities

High liabilities can strain resources and limit financial flexibility, posing risks to long-term stability if not effectively managed.

Thin Profit Margins

Thin profit margins indicate limited buffer against cost increases, potentially affecting profitability and investment capacity over time.

Rising Costs

Increasing costs and labor shortages can pressure margins and operational efficiency, challenging the company's ability to maintain profitability.

GOURMET KINEYA CO., LTD. Business Overview & Revenue Model

Company Description

GOURMET KINEYA CO., LTD. (9850) is a leading company in the food industry, specializing in the production and distribution of high-quality gourmet food products. The company operates in various sectors, including ready-to-eat meals, gourmet snacks, and premium sauces, catering to both retail and foodservice markets. With a commitment to quality and innovation, GOURMET KINEYA offers a diverse range of products that appeal to discerning consumers looking for convenience without compromising on taste.

How the Company Makes Money

GOURMET KINEYA generates revenue through multiple streams, primarily by selling its gourmet food products to retailers and foodservice operators. The company has established a strong presence in both domestic and international markets, allowing it to capitalize on the growing demand for convenient and high-quality food options. Key revenue streams include direct sales to grocery chains, restaurants, and online food platforms. Additionally, GOURMET KINEYA may engage in partnerships with distributors and other food brands to broaden its market reach and enhance distribution channels, contributing to increased sales and brand visibility.

GOURMET KINEYA CO., LTD. Financial Statement Overview

Summary

Gourmet Kineya has shown a strong recovery in revenue and profitability, with improved cost management and operational performance. However, the thin net profit margin and high liabilities present risks that need careful management.

Income Statement

Gourmet Kineya has shown a strong recovery in revenue with a growth rate of 13.6% from 2024 to 2025, following a significant decline in the previous years. The gross profit margin improved to 35.8%, indicating better cost management. The net profit margin at 1.5% suggests thin profitability, though an improvement from negative margins in prior years. The EBIT and EBITDA margins are positive, 2.3% and 4.6% respectively, reflecting operational improvements.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.51, signaling a balanced approach to leverage. Return on equity improved to 7.0%, indicating better returns for shareholders. The equity ratio stands at 29.4%, suggesting a fair level of equity financing relative to total assets. However, total liabilities are still high, which may pose a risk if not managed properly.

Cash Flow

Operating cash flow is positive and growing, with a 12.3% increase from 2024 to 2025, indicating improved cash generation capabilities. Free cash flow is positive, but the free cash flow growth rate is 96.5%, showing significant improvement from previous losses. The operating cash flow to net income ratio is 2.54, indicating strong cash generation relative to net income, but cash flow from financing is significantly negative, highlighting potential funding or debt repayment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.80B	42.07B	37.03B	29.89B	23.27B	22.17B
Gross Profit	15.06B	15.06B	13.40B	10.82B	7.94B	6.82B
EBITDA	1.71B	1.94B	2.41B	253.02M	2.19B	-3.16B
Net Income	463.64M	649.19M	1.10B	-1.15B	513.93M	-5.13B
Balance Sheet
Total Assets	31.80B	31.46B	37.69B	38.83B	40.17B	36.32B
Cash, Cash Equivalents and Short-Term Investments	5.36B	5.51B	12.29B	13.06B	12.86B	7.21B
Total Debt	14.44B	13.95B	20.56B	23.40B	23.49B	20.37B
Total Liabilities	22.71B	22.05B	28.79B	30.99B	31.09B	27.38B
Stockholders Equity	8.94B	9.25B	8.75B	7.68B	8.82B	8.41B
Cash Flow
Free Cash Flow	0.00	275.85M	140.40M	-474.89M	1.63B	-5.44B
Operating Cash Flow	0.00	1.65B	1.47B	483.21M	2.56B	-4.84B
Investing Cash Flow	0.00	-1.56B	564.27M	-233.47M	287.52M	-1.29B
Financing Cash Flow	0.00	-6.79B	-2.84B	-92.27M	2.80B	4.50B

GOURMET KINEYA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 959.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9850, the sentiment is Negative. The current price of 959 is below the 20-day moving average (MA) of 963.05, below the 50-day MA of 964.98, and below the 200-day MA of 995.06, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 28.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9850.

GOURMET KINEYA CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3073	70 Neutral	¥30.56B	13.20	―	―	3.45%	-22.80%
7678	65 Neutral	¥23.07B	67.90	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3178	60 Neutral	¥22.84B	26.90	―	0.82%	0.32%	10.22%
9979	60 Neutral	¥23.23B	19.82	―	1.23%	3.89%	-12.08%
2882	57 Neutral	¥22.56B	75.88	―	0.79%	8.86%	-17.71%
9850	52 Neutral	¥22.26B	64.92	―	0.62%	7.64%	-65.84%

GOURMET KINEYA CO., LTD. Corporate Events

Gourmet Kineya Reports Increased Sales but Faces Profitability Challenges

Gourmet Kineya Co., Ltd. reported a 7.4% increase in net sales for the three months ending June 30, 2025, compared to the previous year. However, the company faced a loss in operating profit and ordinary profit, indicating challenges in maintaining profitability. Despite the negative financial results, the company maintains its forecast for the fiscal year ending March 31, 2026, with a slight increase in net sales and operating profit expected.