Japan Foods Holding (5OI) AI Stock Analysis

• Market Cap: S$29.13M
• Dividend Yield: N/A
• Average Volume (3M): 15.73K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.29
• Revenue Growth: -11.33%
• EPS Growth: -333.07%
• Country: SG
• Employees: 536
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.02
• Shares Outstanding: 174,436,000
• 10 Day Avg. Volume: 24,640
• 30 Day Avg. Volume: 15,730
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 2.31
• 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): 0.03
• Revenue Forecast (FY): S$126.64M

• Rating: 46 Neutral
• Price Target: S$0.17 ▼(-2.35% Downside)

Japan Foods Holding faces significant challenges with declining revenue and profitability, increased leverage, and weak valuation metrics. The technical analysis indicates a bearish trend, with the stock being oversold. The lack of earnings call and corporate events data limits further insights. The company needs to improve its financial health and profitability to enhance its stock performance.

Positive Factors

Strong Operating Cash Flow

Strong operating cash flow indicates the company's ability to generate cash from its core operations, providing a stable financial base for future investments and debt servicing.

High Gross Profit Margin

A high gross profit margin suggests efficient cost management and pricing power, enabling the company to maintain profitability despite revenue challenges.

Diverse Revenue Streams

Diverse revenue streams provide resilience against market fluctuations, supporting long-term stability and growth opportunities across different segments.

Negative Factors

Declining Revenue Growth

Declining revenue growth can limit the company's ability to expand and invest in new opportunities, potentially impacting its competitive position and market share over time.

Increased Leverage

Higher leverage increases financial risk, potentially affecting the company's ability to finance operations and invest in growth, especially if cash flow becomes constrained.

Negative Profitability

Negative profitability indicates challenges in covering costs and generating returns, which can hinder reinvestment and shareholder value creation in the long term.

Japan Foods Holding Business Overview & Revenue Model

Company Description

Japan Foods Holding Ltd., together with its subsidiaries, operates a chain of Japanese restaurants in Singapore. It operates its restaurants under the self developed brands, such as Tokyo Shokudo, Yakiniku Shokudo, Fruit Paradise, Milan shokudo, Godaime, Romana Pizza and Pasta, Milan Tei, Milan Cafeteria, Kyo Komachi, and Katsuyoshi; and franchised brands, such as Ajisen Ramen, Konjiki Hototogisu, Maze Soba Hototogisu, Menya Musashi, Tori Sanwa, Osaka Ohsho, Kageyama, Afuri Ramen, Yonehachi, Menzo Butao, New ManLee Bak Kut Teh, Kumachan Onsen, Tororitenshi no WARABI-MOCHI, and Yamaya Kitchen. The company was founded in 1997 and is headquartered in Singapore.

How the Company Makes Money

Japan Foods Holding generates revenue through various streams, primarily from the operation of its restaurant and food outlet chains. The company earns money by selling food and beverages directly to consumers in its dining establishments. Additionally, it generates income through franchise agreements, where it allows third parties to operate restaurants under its brand name in exchange for franchise fees and a percentage of sales. The company also benefits from partnerships with suppliers and distributors, ensuring a consistent supply of ingredients and products, which helps maintain quality and operational efficiency. Seasonal promotions, special events, and catering services further enhance its revenue potential, contributing to its overall earnings.

Japan Foods Holding Financial Statement Overview

Summary

Japan Foods Holding is experiencing declining revenue and profitability, with negative net profit and EBIT margins. The balance sheet shows increased leverage, posing financial risks. Despite strong operating cash flow, negative free cash flow growth is concerning. Overall, the company needs to address profitability issues and manage its leverage to improve financial health.

Income Statement

Japan Foods Holding has experienced declining revenue growth, with a negative growth rate in the most recent year. The gross profit margin remains strong at over 84%, but the company is facing challenges with profitability, as indicated by negative net profit and EBIT margins. The EBITDA margin is relatively healthy, suggesting some operational efficiency, but overall profitability is a concern.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating higher leverage, which could pose financial risks. The return on equity is negative, reflecting the company's struggle to generate profit from shareholders' equity. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains strong relative to net income, indicating good cash generation from operations. However, free cash flow growth has been negative, which could impact future investments. The free cash flow to net income ratio is healthy, showing that the company can convert earnings into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.59M	83.59M	86.36M	78.53M	54.61M	51.00M
Gross Profit	70.66M	70.66M	73.13M	66.42M	46.21M	43.22M
EBITDA	-4.60M	24.86M	30.66M	29.59M	24.64M	-1.47M
Net Income	-7.87M	-7.87M	-495.00K	4.13M	3.23M	3.63M
Balance Sheet
Total Assets	74.48M	74.48M	93.11M	90.62M	77.84M	68.14M
Cash, Cash Equivalents and Short-Term Investments	7.87M	7.87M	11.47M	18.49M	23.21M	23.13M
Total Debt	35.01M	35.01M	44.88M	47.03M	36.21M	27.47M
Total Liabilities	52.98M	52.98M	63.35M	57.90M	45.13M	34.76M
Stockholders Equity	21.50M	21.50M	29.76M	32.72M	32.71M	33.38M
Cash Flow
Free Cash Flow	22.83M	22.57M	20.81M	21.02M	21.41M	18.70M
Operating Cash Flow	28.97M	28.97M	30.74M	29.47M	25.40M	19.47M
Investing Cash Flow	-4.79M	-4.79M	-9.55M	-8.47M	-3.46M	-2.25M
Financing Cash Flow	-26.43M	-26.43M	-28.37M	-25.89M	-22.62M	-14.25M

Japan Foods Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5OI, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 87.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:5OI.

Japan Foods Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5OI	46 Neutral	S$29.13M	-2.98	-41.54%	―	-11.33%	-333.07%