Kozosushi Co., Ltd. (9973) AI Stock Analysis

• Market Cap: ¥7.66B
• Dividend Yield: N/A
• Average Volume (3M): 9.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 8.93%
• EPS Growth: -10.94%
• Country: JP
• Employees: 338
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -1.42
• Shares Outstanding: 294,621,340
• 10 Day Avg. Volume: 5,350,080
• 30 Day Avg. Volume: 9,278,370
• PEG Ratio: 0.44
• Price to Book (P/B): 20.93
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -9.33
• 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: 43 Neutral
• Price Target: ¥28.00 ▲(21.74% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by weak financial performance: ongoing losses, high leverage relative to equity, and materially negative operating/free cash flow. Technicals are neutral with only modest longer-term support, and valuation is constrained by a negative P/E and no provided dividend yield.

Positive Factors

Revenue Growth

Consistent top-line growth, including a step-up in 2025, indicates enduring demand for the company’s sushi and takeout format. Durable revenue momentum supports scale benefits, improves leverage on fixed costs, and creates a clearer path to sustained profit recovery if margins hold.

Margin Improvement

Meaningful margin gains versus recent troughs point to operational improvements or better mix that are not purely cyclical. If sustained, improved unit economics raise long-term profitability prospects, reduce break-even sensitivity, and strengthen the firm’s ability to generate cash over multiple quarters.

Reducing Debt Trend

A downward trend in debt from prior years reflects active balance-sheet repair, lowering gross leverage and refinancing burdens. Continued de‑leveraging enhances financial flexibility, reduces interest expense risk, and improves capacity to fund strategic initiatives without immediate external shocks.

Negative Factors

Ongoing Losses

Persistent operating and net losses in the most recent fiscal year indicate the company has not yet translated revenue growth and margin gains into durable profitability. Continued losses erode equity, constrain reinvestment, and require external funding until a sustained profit cycle is achieved.

Weak Cash Generation

Materially negative operating and free cash flow in 2025 signals limited internal funding capacity and exposure to liquidity stress. This structural weakness increases reliance on external capital, raises refinancing risk, and limits the company’s ability to sustainably invest or absorb demand shocks.

Thin Capitalization

A thinly capitalized balance sheet with elevated debt-to-equity reduces the company’s buffer against adverse shocks and heightens solvency risk. Even with recent improvements, limited equity and recurring losses restrict strategic options and make the business more vulnerable to rising rates or revenue setbacks.

Kozosushi Co., Ltd. Business Overview & Revenue Model

Company Description

KOZO Holdings Co.,Ltd. operates and franchises Kozo Sushi stores. The company was formerly was Kozosushi Co., LTD. and changed its name to KOZO Holdings Co.,Ltd. in June 2024. KOZO Holdings Co.,Ltd. was founded in 1964 and is headquartered in Tokyo, Japan

How the Company Makes Money

Kozosushi generates revenue primarily through its restaurant operations, where it sells a variety of sushi dishes, including nigiri, sashimi, and rolls, as well as other Japanese foods like ramen and tempura. Key revenue streams include dine-in sales, takeout services, and catering for events. Additionally, the company may engage in partnerships with local suppliers and distributors to ensure a steady supply of fresh seafood and ingredients, which can help reduce costs and improve margins. Seasonal promotions and special menu offerings also contribute to revenue by attracting customers. The brand's reputation for quality and authenticity can lead to repeat business and customer loyalty, further bolstering its financial performance.

Kozosushi Co., Ltd. Financial Statement Overview

Summary

Revenue growth and improving margins are positives, but profitability remains weak with operating and net losses in 2025. Leverage is still high relative to equity, and both operating cash flow and free cash flow were materially negative in 2025, indicating elevated financial risk and limited self-funding capacity.

Income Statement

Revenue has grown steadily over time, with 2025 showing a solid step-up versus prior years. However, profitability remains weak: the company is still generating operating losses and a net loss in 2025, even though margins improved meaningfully from 2024 and are far better than the 2022 trough. Overall, top-line momentum is a positive, but the ongoing losses keep the income statement score low.

Balance Sheet

Leverage is a key constraint. While debt levels have come down from 2021–2023, the balance sheet is still thinly capitalized, and debt remains high relative to equity (despite improvement from 2024’s very elevated level). Total assets are stable, but weak equity and recurring losses increase financial risk and reduce flexibility.

Cash Flow

Cash generation is currently a major concern. Operating cash flow and free cash flow were both materially negative in 2025, following negative free cash flow in 2024 and a positive year in 2023. The pattern points to volatility and limited ability to self-fund operations, which raises reliance on external financing if conditions do not improve.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.88B	19.44B	18.11B	13.05B	10.29B	8.02B
Gross Profit	7.41B	7.42B	6.81B	5.17B	5.10B	3.67B
EBITDA	-221.25M	-151.25M	-290.00M	-163.73M	-692.56M	-399.32M
Net Income	-758.80M	-684.48M	-782.65M	-338.00M	-953.57M	-619.62M
Balance Sheet
Total Assets	5.15B	5.65B	6.00B	5.63B	3.20B	6.20B
Cash, Cash Equivalents and Short-Term Investments	670.25M	974.51M	1.13B	997.00M	425.60M	1.52B
Total Debt	991.53M	866.16M	1.11B	1.27B	633.25M	2.23B
Total Liabilities	4.71B	5.26B	5.87B	5.34B	2.76B	5.51B
Stockholders Equity	419.04M	373.34M	106.00M	267.00M	421.84M	684.05M
Cash Flow
Free Cash Flow	0.00	-836.95M	-275.39M	151.00M	-777.83M	-161.84M
Operating Cash Flow	0.00	-781.54M	-49.37M	203.00M	-607.00M	130.60M
Investing Cash Flow	0.00	-152.26M	-169.82M	302.84M	-220.41M	752.01M
Financing Cash Flow	0.00	779.54M	359.23M	50.41M	79.19M	131.53M

Kozosushi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9973, the sentiment is Negative. The current price of 23 is below the 20-day moving average (MA) of 28.15, below the 50-day MA of 28.74, and below the 200-day MA of 26.38, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 33.43 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9973.

Kozosushi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9828	72 Outperform	¥52.26B	11.26	―	2.41%	6.49%	4.27%
9279	68 Neutral	¥84.20B	38.55	―	0.67%	26.01%	16.33%
7630	66 Neutral	¥143.18B	51.22	―	1.71%	9.51%	6.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7616	59 Neutral	¥198.64B	74.93	―	0.29%	8.99%	61.95%
7421	58 Neutral	¥78.99B	115.46	―	0.32%	0.51%	4.92%
9973	43 Neutral	¥7.66B	-10.23	―	―	8.93%	-10.94%