Ohsho Food Service Corp. (9936) AI Stock Analysis

• Market Cap: ¥194.64B
• Dividend Yield: 1.65%
• Average Volume (3M): 169.76K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.45
• Revenue Growth: 9.59%
• EPS Growth: 8.08%
• Country: JP
• Employees: 2,290
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 64,858,690
• 10 Day Avg. Volume: 132,170
• 30 Day Avg. Volume: 169,760
• PEG Ratio: 11.64
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 25.82
• 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: ¥3,402.00 ▲(5.82% Upside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is driven primarily by strong financial performance (steady growth, solid profitability, and very low leverage), partially offset by weak technical signals (bearish trend and negative momentum) and a middling valuation profile (P/E ~21 with a modest ~1.68% yield).

Positive Factors

Steady Revenue Growth

Consistent multi-year revenue growth demonstrates durable customer demand for the Gyoza no Ohsho concept and validated unit economics across company-owned and franchised stores. This trend supports predictable cash flows, franchise expansion capacity, and long-term scale advantages in domestic casual dining.

Conservative Balance Sheet

Exceptionally low leverage and sizable equity provide high financial flexibility for investment, new store openings, or downturns. Low debt reduces insolvency risk and interest burden, enabling management to prioritize strategic initiatives and maintain stability through industry cycles without heavy refinancing pressure.

Healthy Margins

Strong gross margins and mid-teens-ish operating economics for the sector indicate favorable unit economics and effective cost controls on food and operations. Durable margin structure supports reinvestment in menu development, marketing, and franchise support, underpinning sustained profitability across locations.

Negative Factors

Softer Cash Conversion & FCF Trends

Declining free cash flow growth and FCF materially below net income signal weaker cash conversion, likely from working-capital timing or margin pressure. This limits internally available funds for capex, franchising, or shareholder returns and raises sensitivity to operational shocks over the medium term.

Net Margin Normalization

Normalization from an elevated 2022 peak suggests reduced profit leverage and exposure to cost pressures (food, labor, occupancy). If margins remain constrained, the company's ability to convert revenue gains into incremental profits and fund growth initiatives sustainably may be limited over the coming quarters.

Decline in TTM Equity and Assets vs Annual Snapshot

A reduction in reported TTM equity and assets versus the latest annual figures is a structural watch item: it can signal shrinking asset base, returns distribution, or balance-sheet shifts that could constrain expansion capacity or indicate one-off adjustments. This reduces optionality if investment is needed.

Ohsho Food Service Corp. Business Overview & Revenue Model

Company Description

Ohsho Food Service Corp. operates and franchises a chain of Chinese restaurants under the Gyoza OHSHO brand in Japan. It operates 734 outlets in Japan. The company was founded in 1967 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Ohsho Food Service Corp. generates revenue through multiple key streams, primarily from its restaurant operations, which include dine-in, takeout, and delivery services. The company capitalizes on its brand reputation and customer loyalty to drive sales across its various dining concepts. Additionally, Ohsho may engage in strategic partnerships with food suppliers and distributors to ensure a steady flow of quality ingredients at competitive prices, enhancing its profit margins. Seasonal promotions and menu innovations also contribute to revenue growth by attracting new customers and encouraging repeat visits. Furthermore, the company may explore franchising opportunities, allowing it to expand its market presence while generating franchise fees and royalties.

Ohsho Food Service Corp. Financial Statement Overview

Summary

Strong overall fundamentals supported by steady revenue growth and healthy operating profitability, plus an exceptionally low-leverage balance sheet. The main offset is softer recent cash-flow momentum and weaker cash conversion versus earnings.

Income Statement

Revenue has grown steadily over the past several years (from 2021 through 2025), with TTM (Trailing-Twelve-Months) revenue also above the latest annual level. Profitability is solid for the sector: TTM (Trailing-Twelve-Months) gross margin is strong (~68%) and operating profitability is healthy (about 10% operating margin). Net margin is stable in the mid-single digits to high-single digits in recent years, though it is below the unusually strong 2022 level, showing some normalization/pressure versus peak profitability.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage: debt-to-equity is ~0.06 in TTM (Trailing-Twelve-Months) (down materially from 2021), indicating meaningful deleveraging and high financial flexibility. Equity is sizable relative to assets, and returns on equity are consistently healthy (roughly 10–15% range across periods, ~12% TTM). The main watch item is that equity and total assets in TTM (Trailing-Twelve-Months) are lower than the latest annual snapshot, but leverage remains very manageable.

Cash Flow

Cash generation is positive and consistent: TTM (Trailing-Twelve-Months) operating cash flow (~¥11.4B) and free cash flow (~¥7.0B) remain solid. However, free cash flow growth is negative in TTM (Trailing-Twelve-Months) and slightly negative in the latest annual period, pointing to softer cash momentum versus the stronger 2022–2024 stretch. Cash conversion is adequate but not best-in-class: TTM (Trailing-Twelve-Months) free cash flow is ~62% of net income, and operating cash flow trails reported earnings (coverage below 1), suggesting working-capital or timing effects that can create periodic volatility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	116.86B	111.03B	101.40B	93.02B	84.78B	80.62B
Gross Profit	78.96B	73.35B	69.56B	63.66B	58.17B	56.09B
EBITDA	14.79B	14.30B	13.58B	11.46B	15.63B	8.60B
Net Income	8.07B	8.07B	7.91B	6.21B	8.81B	4.29B
Balance Sheet
Total Assets	81.48B	96.63B	91.46B	84.10B	89.41B	91.15B
Cash, Cash Equivalents and Short-Term Investments	22.12B	38.12B	36.30B	32.03B	37.44B	39.59B
Total Debt	3.50B	5.00B	7.00B	9.00B	16.06B	26.99B
Total Liabilities	19.39B	22.39B	22.83B	21.33B	30.31B	38.20B
Stockholders Equity	62.09B	74.24B	68.63B	62.77B	59.10B	52.95B
Cash Flow
Free Cash Flow	6.99B	7.04B	8.73B	4.12B	11.04B	2.63B
Operating Cash Flow	11.37B	11.21B	12.22B	7.33B	13.60B	5.82B
Investing Cash Flow	-4.69B	-4.57B	-3.22B	-3.23B	-2.94B	-3.44B
Financing Cash Flow	-19.54B	-4.83B	-4.73B	-9.51B	-12.81B	20.09B

Ohsho Food Service Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3215.00
• 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:9936, the sentiment is Negative. The current price of 3215 is above the 20-day moving average (MA) of 3201.75, above the 50-day MA of 3213.20, and below the 200-day MA of 3460.66, indicating a neutral trend. The MACD of 3.44 indicates Negative momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9936.

Ohsho Food Service Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7581	72 Outperform	¥343.09B	29.75	9.66%	0.55%	14.33%	36.83%
9936	66 Neutral	¥194.64B	21.70	―	1.65%	9.59%	8.08%
7630	66 Neutral	¥147.49B	52.18	―	1.71%	9.51%	6.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3387	59 Neutral	¥324.84B	62.58	―	0.56%	9.28%	7.59%
7616	59 Neutral	¥195.67B	73.57	―	0.29%	8.99%	61.95%
9861	53 Neutral	¥203.38B	53.31	―	0.69%	10.75%	-14.28%

Ohsho Food Service Corp. Corporate Events

Ohsho Food Service Posts Strong Sales Growth but Flat Profits for December Quarter

Ohsho Food Service Corp. reported consolidated net sales of ¥87.3 billion for the quarter ended December 2025, a 7.2% increase year on year, reflecting solid top-line growth in its restaurant operations. Operating profit edged up 0.4% to ¥7.6 billion, while ordinary profit dipped slightly by 0.3% to ¥7.9 billion and profit attributable to owners of parent was essentially flat at ¥5.2 billion, indicating margin pressures despite higher sales. Comprehensive income declined 11.8%, and the company’s total assets fell from ¥96.6 billion in March 2025 to ¥81.5 billion in December 2025, though its capital adequacy ratio remained high at 76.2%, underscoring a still-robust financial position for shareholders despite softer profit momentum.

The most recent analyst rating on (JP:9936) stock is a Buy with a Yen3607.00 price target. To see the full list of analyst forecasts on Ohsho Food Service Corp. stock, see the JP:9936 Stock Forecast page.

Ohsho Food Service Posts Steady Same-Store Growth in December 2025

Ohsho Food Service Corp. reported that sales at all company-operated stores in December 2025 reached 8,897 million yen, up 2.3% year on year, while existing company-operated stores posted sales of 8,675 million yen, a 1.8% increase. The data show steady, broad-based growth in both total and same-store revenue through the first nine months of the fiscal year, supported by higher sales per customer despite largely flat customer numbers, underscoring resilient demand and a stable store network of 727 outlets across company-operated and franchise formats.

The most recent analyst rating on (JP:9936) stock is a Hold with a Yen3488.00 price target. To see the full list of analyst forecasts on Ohsho Food Service Corp. stock, see the JP:9936 Stock Forecast page.

Ohsho Food Service Completes Restricted Stock Disposal With Partial Forfeiture

Ohsho Food Service Corp. has completed the payment procedures for the disposal of treasury shares used as restricted stock compensation, following a July 31, 2025 board resolution. The number of shares actually disposed of was reduced from the initially planned 190,930 to 184,925 common shares, lowering the total disposal amount from ¥704.53 million to ¥682.37 million after 102 eligible employees left the company and forfeited their entitlement, slightly decreasing the size of the equity-based compensation allocation but not altering the per-share disposal value.

The most recent analyst rating on (JP:9936) stock is a Hold with a Yen3488.00 price target. To see the full list of analyst forecasts on Ohsho Food Service Corp. stock, see the JP:9936 Stock Forecast page.

Ohsho Food Service Corp. Reports Increased Sales in November 2025

Ohsho Food Service Corp. reported a year-on-year increase in sales for both all company-operated stores and existing stores in November 2025, with sales figures reaching 8,840 million yen and 8,638 million yen, respectively. This growth reflects a positive trend in the company’s operations, indicating a strong market presence and potential for future expansion.

The most recent analyst rating on (JP:9936) stock is a Hold with a Yen3249.00 price target. To see the full list of analyst forecasts on Ohsho Food Service Corp. stock, see the JP:9936 Stock Forecast page.

Ohsho Food Service Corp. Reports Q2 Financial Results with Increased Sales

Ohsho Food Service Corp. reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, showing a notable increase in net sales by 8.6% compared to the previous year. Despite a slight decline in ordinary profit, the company maintained stable profit attributable to owners of the parent, reflecting a modest growth of 0.3%. The financial position remains strong with a high equity ratio, although total assets and net assets have decreased. The company has not revised its dividend forecast, maintaining a stable outlook for stakeholders.

The most recent analyst rating on (JP:9936) stock is a Hold with a Yen3249.00 price target. To see the full list of analyst forecasts on Ohsho Food Service Corp. stock, see the JP:9936 Stock Forecast page.

Ohsho Food Service Corp. Reports Growth in October 2025 Sales

Ohsho Food Service Corp. reported an increase in sales for October 2025, with all company-operated stores achieving a year-on-year growth of 3.6%. The sales of existing company-operated stores also saw a 3.0% increase compared to the previous year. This growth indicates a positive trend in the company’s operations, potentially strengthening its position in the food service market and benefiting stakeholders.

The most recent analyst rating on (JP:9936) stock is a Hold with a Yen4090.00 price target. To see the full list of analyst forecasts on Ohsho Food Service Corp. stock, see the JP:9936 Stock Forecast page.