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

• Market Cap: ¥21.75B
• Dividend Yield: 0.63%
• Average Volume (3M): 70.45K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.41
• Revenue Growth: 13.61%
• EPS Growth: -40.79%
• Country: JP
• Employees: 966
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Restaurants
• EPS (TTM): -7.20
• Shares Outstanding: 22,910,275
• 10 Day Avg. Volume: 68,590
• 30 Day Avg. Volume: 70,449
• PEG Ratio: -1.38
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥982.00
• Price Target Upside: 4.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: ¥982.00 ▲(4.91%Upside)

Gourmet Kineya's stock score is primarily influenced by its financial recovery and strong cash generation, despite high liabilities. The technical analysis reflects bearish momentum, with the stock being oversold. Valuation suggests overpricing, which, combined with low dividend yield, limits attractiveness.

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

Company Description

GOURMET KINEYA CO., LTD. is a Japanese company primarily engaged in the operation of restaurants and the production of food products. The company operates a wide range of eateries, including noodle shops, Japanese cuisine restaurants, and other dining establishments. It is also involved in the manufacturing and sale of food products, catering services, and the operation of food courts and other related businesses.

How the Company Makes Money

GOURMET KINEYA CO., LTD. generates revenue through a multi-faceted approach primarily centered around its restaurant operations. The company's main revenue streams include sales from its chain of restaurants, which offer various dining experiences, including traditional Japanese foods such as noodles and sushi. Additionally, the company earns income from manufacturing and selling food products, which are distributed to both its own restaurants and external clients. Catering and food court operations provide supplementary income, leveraging the company's expertise in food service to cater to events and manage dining areas in shopping centers. Strategic partnerships with retail outlets and collaborations with other food service providers also contribute to its earnings, allowing the company to expand its reach and customer base.

GOURMET KINEYA CO., LTD. Financial Statement Overview

Summary

Gourmet Kineya is on a strong recovery path with improved revenue and profitability. The company exhibits effective cost management and operational improvements. Despite a moderate debt-to-equity ratio, high liabilities pose risks. Strong cash generation is evident, but financial management needs to be cautious.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	42.07B	37.03B	29.89B	23.27B	22.17B
Gross Profit	15.06B	13.40B	10.82B	7.94B	6.82B
EBITDA	1.94B	2.41B	255.02M	2.22B	-3.16B
Net Income	649.19M	1.10B	-1.15B	513.93M	-5.13B
Balance Sheet
Total Assets	31.46B	37.69B	38.83B	40.17B	36.32B
Cash, Cash Equivalents and Short-Term Investments	5.51B	12.29B	12.58B	12.86B	6.77B
Total Debt	13.95B	20.56B	23.40B	23.49B	20.37B
Total Liabilities	22.05B	28.79B	30.99B	31.09B	27.38B
Stockholders Equity	9.25B	8.75B	7.68B	8.82B	8.41B
Cash Flow
Free Cash Flow	275.85M	140.40M	-474.89M	1.63B	-5.44B
Operating Cash Flow	1.65B	1.47B	483.21M	2.56B	-4.84B
Investing Cash Flow	-1.56B	564.27M	-233.47M	287.52M	-1.29B
Financing Cash Flow	-6.79B	-2.84B	-92.27M	2.80B	4.50B

GOURMET KINEYA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 936.00
• 50DMA: Negative
• 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:9850, the sentiment is Neutral. The current price of 936 is below the 20-day moving average (MA) of 945.55, below the 50-day MA of 968.18, and below the 200-day MA of 1025.77, indicating a neutral trend. The MACD of -8.45 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 80.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7678	78 Outperform	¥23.20B	39.03		―	―	―
3073	70 Neutral	¥30.71B	13.55		―	3.73%	-23.54%
9979	65 Neutral	¥24.62B	18.91		1.02%	4.95%	-10.76%
3178	64 Neutral	¥24.31B	22.58		0.79%	1.92%	14.66%
Sector *	62 Neutral	$16.95B	10.84	-7.26%	3.05%	1.71%	-25.14%
2882	62 Neutral	¥23.23B	68.09		0.29%	6.23%	-4.80%
9850	50 Neutral	¥21.75B	33.51		0.63%	13.61%	-40.79%

GOURMET KINEYA CO., LTD. Corporate Events

GOURMET KINEYA Announces Parent Company Financial Results

GOURMET KINEYA CO., LTD. announced the finalized financial results for its unlisted parent company, MUKUMOTO Co., Ltd., which is primarily involved in the parking lot rental business. The announcement provides insights into the financial position of MUKUMOTO, highlighting significant liabilities exceeding assets, which may impact stakeholders’ perception of the company’s financial health.

GOURMET KINEYA Announces Executive Personnel Changes

GOURMET KINEYA CO., LTD. has announced a series of executive personnel changes, including the appointment of Atsushi Mukumoto as Chief Executive Officer. These changes, pending final approval at the upcoming Board of Directors meeting, are expected to influence the company’s strategic direction and operational efficiency.

GOURMET KINEYA Announces Increased Year-End Dividend

GOURMET KINEYA CO., LTD. has announced an increase in its year-end dividend to 7.00 yen per share, up from the previous forecast of 6.00 yen, reflecting strong financial results and future business prospects. This decision underscores the company’s commitment to shareholder returns and its strategy to strengthen financial standings while maintaining stable payouts.

GOURMET KINEYA Announces Executive Personnel Changes

GOURMET KINEYA CO., LTD. announced executive personnel changes, including the election of new directors and committee members, to be finalized after the upcoming shareholders’ meeting. These changes are expected to impact the company’s governance structure, potentially influencing its strategic direction and stakeholder relations.

GOURMET KINEYA Reports Extraordinary Income and Loss for FY 2025

GOURMET KINEYA CO., LTD. announced the recognition of extraordinary income and loss for the fiscal year ended March 31, 2025. The company reported reversals of provisions for losses on support to subsidiaries and guarantees due to improved financial conditions of certain subsidiaries, leading to extraordinary income. However, it also recognized impairment losses on fixed assets and provisions for doubtful accounts, resulting in extraordinary losses. These financial adjustments have been reflected in their consolidated financial results, impacting their fiscal performance.

GOURMET KINEYA Reports Discrepancy in Fiscal Year Financial Results

GOURMET KINEYA CO., LTD. reported a discrepancy between its forecasted and actual financial results for the fiscal year ending March 31, 2025. While the company’s net sales were slightly lower than expected, profit attributable to owners exceeded forecasts due to deferred income tax recognition. However, operating and ordinary profits were impacted by rising costs and labor shortages. Non-consolidated results showed a decline in ordinary income and profit compared to the previous year due to reduced dividend income and the absence of significant asset sales gains.

Gourmet Kineya Reports Strong Sales Growth and Dividend Increase

Gourmet Kineya Co., Ltd. reported a significant increase in net sales and operating profit for the fiscal year ended March 31, 2025, despite a decrease in profit attributable to owners of the parent. The company also improved its equity-to-asset ratio and increased its annual dividend per share, indicating a positive outlook for stakeholders. Looking ahead, the company forecasts modest growth in net sales and operating profit for the fiscal year ending March 31, 2026, while expecting a slight decline in profit attributable to owners of the parent.