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

• Market Cap: ¥7.66B
• Dividend Yield: N/A
• Average Volume (3M): 4.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: 10.54%
• EPS Growth: -33.78%
• Country: JP
• Employees: 338
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): -0.14
• Shares Outstanding: 294,621,340
• 10 Day Avg. Volume: 3,241,730
• 30 Day Avg. Volume: 4,542,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥24.50
• Price Target Upside: -5.77% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: ¥24.50 ▼(-5.77% Downside)

Kozosushi Co., Ltd. has a low overall stock score due to significant financial challenges, including persistent losses and high leverage. Technical indicators suggest weak market momentum, and the negative P/E ratio highlights valuation concerns. The absence of a dividend yield further detracts from the stock's appeal.

Positive Factors

Revenue Growth

The significant revenue growth over recent years indicates strong market demand and effective expansion strategies, which can support long-term business sustainability.

Market Reach

Diverse distribution channels, including direct sales and partnerships, enhance market reach and customer access, supporting sustained revenue streams.

Product Quality

A strong reputation for quality and freshness can drive customer loyalty and competitive advantage, essential for long-term success in the food industry.

Negative Factors

High Leverage

High leverage indicates financial risk, as heavy reliance on debt can strain cash flows and limit the company's ability to invest in growth opportunities.

Negative Profit Margins

Consistent negative profit margins highlight operational inefficiencies, which can hinder long-term profitability and shareholder value creation.

Negative Cash Flow

Negative cash flow suggests challenges in managing capital expenditures and generating cash, potentially impacting the company's ability to sustain operations and growth.

Kozosushi Co., Ltd. Business Overview & Revenue Model

Company Description

Kozosushi Co., Ltd. (9973) operates in the food industry, primarily focusing on the production and sale of sushi and related food products. The company is known for its dedication to quality and freshness, offering a wide range of sushi options that cater to diverse consumer tastes. Kozosushi Co., Ltd. is involved in multiple sectors including food manufacturing and retail, ensuring that its products reach a broad market both through direct sales and various distribution channels.

How the Company Makes Money

Kozosushi Co., Ltd. generates revenue through the manufacturing and sale of sushi and related products. Its primary revenue streams include direct sales to consumers through its own retail outlets and partnerships with supermarkets and convenience stores that carry its products. Additionally, the company might engage in wholesale distribution to various food service providers. Factors contributing to its earnings include the company's reputation for high-quality and fresh ingredients, its ability to innovate with new sushi offerings, and strategic partnerships with retailers and suppliers that help to optimize its supply chain and distribution network.

Kozosushi Co., Ltd. Financial Statement Overview

Summary

Kozosushi Co., Ltd. faces significant financial challenges. Despite revenue growth, the company is consistently unprofitable with negative EBIT and net income margins. High leverage risk and negative cash flow metrics further highlight operational and financial inefficiencies.

Income Statement

Kozosushi Co., Ltd. has experienced significant revenue growth from 2020 to 2024, with the revenue increasing from ¥6.21 billion to ¥18.11 billion. However, the company has been consistently unprofitable, with negative EBIT and net income margins throughout the period. The net profit margin for 2024 was -4.32%, reflecting ongoing operational challenges. Despite revenue growth, profitability remains a concern.

Balance Sheet

The balance sheet shows a very high debt-to-equity ratio, as the company has minimal equity compared to its liabilities, indicating a high leverage risk. In 2024, the debt-to-equity ratio was 10.52. The equity ratio was only 1.75%, underscoring the company's reliance on debt financing. The return on equity is negative due to consistent losses, signaling poor performance in generating returns for shareholders.

Cash Flow

Kozosushi Co., Ltd. has struggled with negative free cash flow in recent years, with the free cash flow in 2024 being -¥257 million. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting sales into cash. The free cash flow to net income ratio is also negative, indicating challenges in managing capital expenditures and generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.52B	18.11B	13.05B	10.29B	8.02B	6.21B
Gross Profit	7.15B	6.81B	5.17B	5.10B	3.67B	3.18B
EBITDA	-196.09M	-290.00M	-163.73M	-692.56M	-399.32M	70.56M
Net Income	-723.83M	-782.65M	-338.00M	-953.57M	-619.62M	27.43M
Balance Sheet
Total Assets	5.02B	6.00B	5.63B	3.20B	6.20B	1.69B
Cash, Cash Equivalents and Short-Term Investments	527.90M	1.13B	997.00M	425.60M	1.52B	133.16M
Total Debt	1.05B	1.11B	1.27B	633.25M	2.23B	220.40M
Total Liabilities	4.97B	5.87B	5.34B	2.76B	5.51B	1.38B
Stockholders Equity	24.31M	106.00M	267.00M	421.84M	684.05M	306.38M
Cash Flow
Free Cash Flow	0.00	-275.39M	151.00M	-777.83M	-161.84M	-319.80M
Operating Cash Flow	0.00	-49.37M	203.00M	-607.00M	130.60M	-60.81M
Investing Cash Flow	0.00	-169.82M	302.84M	-220.41M	752.01M	-227.75M
Financing Cash Flow	0.00	359.23M	50.41M	79.19M	131.53M	182.66M

Kozosushi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 26 is below the 20-day moving average (MA) of 26.85, below the 50-day MA of 29.84, and above the 200-day MA of 20.93, indicating a neutral trend. The MACD of -0.72 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
7630	68 Neutral	¥150.36B	46.07		1.71%	10.63%	22.33%
9279	68 Neutral	¥61.31B	33.13		0.65%	24.45%	-3.83%
7421	66 Neutral	¥81.06B	66.75		0.30%	1.53%	-15.91%
9828	66 Neutral	¥61.81B	13.15		2.01%	8.33%	24.64%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
7616	56 Neutral	¥203.59B	292.58		0.26%	10.35%	-69.33%
9973	39 Underperform	¥7.66B	―		―	10.54%	-33.78%