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

• Market Cap: ¥7.37B
• Dividend Yield: N/A
• Average Volume (3M): 9.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• 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: ¥24.00 ▲(4.35% 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

Top-line Growth

Consistent revenue growth (step-up in 2025) shows the core sushi and takeout formats are gaining traction. Durable top-line momentum supports scale benefits, helps absorb fixed costs, and underpins longer-term recovery potential if margins and cash generation continue improving.

Margin Improvement

Meaningful margin improvement versus 2024 indicates management is extracting more operating leverage from sales, which is a structural positive. Sustained margin recovery would narrow losses, reduce financing needs, and meaningfully improve cash conversion over the medium term.

Deleveraging Trend

Reduction in debt versus earlier peak years reflects progress on capital structure repair. A continued trend of lowering leverage enhances financial flexibility, reduces interest burden, and lessens refinancing risk, supporting more durable operations and investment capacity.

Negative Factors

Ongoing Losses

The company still reports operating and net losses in 2025, which erode equity and constrain reinvestment. Persistent unprofitability undermines self-funding, keeps pressure on margins, and requires sustained execution to translate revenue gains into consistent net income.

Negative Cash Generation

Materially negative operating and free cash flow in 2025 signals weak cash conversion and reliance on external funding. This pattern increases liquidity and refinancing risk, limits ability to invest in stores or marketing, and may force strategic trade-offs if it persists.

Thinly Capitalized Balance Sheet

A thin equity base and comparatively high debt reduce financial resilience. Limited capitalization increases vulnerability to shocks, restricts borrowing capacity, and raises the cost of capital, constraining growth initiatives and heightening structural risk over the medium term.

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

null

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	-212.03M	-151.25M	-288.73M	-144.16M	-434.30M	71.15M
Net Income	-759.38M	-684.48M	-782.65M	-338.53M	-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	997.44M	436.45M	1.18B
Total Debt	991.53M	866.16M	1.11B	1.28B	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	267.98M	421.84M	684.05M
Cash Flow
Free Cash Flow	0.00	-836.95M	-256.67M	152.31M	-767.00M	-159.40M
Operating Cash Flow	0.00	-781.54M	-49.37M	203.91M	-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: Negative
• 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 23 is below the 20-day moving average (MA) of 25.70, below the 50-day MA of 27.82, and below the 200-day MA of 26.89, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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
2705	66 Neutral	¥50.32B	39.57	―	0.17%	15.53%	-26.93%
7522	65 Neutral	¥37.91B	3.96	―	1.04%	5.47%	61.89%
9828	64 Neutral	¥51.64B	11.04	―	2.41%	6.49%	4.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3198	60 Neutral	¥50.21B	74.59	―	1.30%	2.90%	-26.37%
2695	58 Neutral	¥139.59B	31.47	―	0.63%	4.32%	11.78%
9973	43 Neutral	¥7.37B	-11.41	―	―	8.93%	-10.94%