Japan Foods Holding (5OI) AI Stock Analysis

• Market Cap: S$20.06M
• Dividend Yield: N/A
• Average Volume (3M): 15.73K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.40
• Revenue Growth: -11.33%
• EPS Growth: -333.07%
• Country: SG
• Employees: 536
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: S$0.11 ▼(-33.53% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily held back by weak financial performance (declining revenue and loss-making profitability) and a clear downtrend in the stock price (below all key moving averages with negative MACD). Operating cash flow strength provides some support, but valuation is less compelling due to losses (negative P/E) and no dividend yield data.

Positive Factors

High gross profit margin

A gross margin above 84% indicates durable unit economics in core offerings. Strong gross margins provide a structural cushion to absorb SG&A and regional cost volatility, enabling reinvestment in growth or margin recovery even if top-line lags.

Solid operating cash generation

Consistently strong operating cash flow versus reported losses shows the business converts underlying sales into cash. This cash conversion supports working capital, capex and stabilizes operations without immediate reliance on external financing, improving resilience.

Balanced asset structure

A stable equity ratio signals a balanced mix of assets and liabilities that reduces insolvency risk. That structural stability gives management room to execute turnaround plans, manage debt maturities and invest selectively without destabilizing the balance sheet.

Negative Factors

Declining revenue

Sustained top-line contraction undermines scale advantages, reduces leverage over fixed costs and can erode customer traction. Continued revenue declines make margin recovery and operating leverage harder to achieve and lengthen the runway to profitability.

Loss-making profitability

Persistent negative EBIT and net margins weaken retained earnings and restrict reinvestment capacity. Loss-making operations increase reliance on cash reserves or external funding, heighten refinancing risk and impair ability to fund strategic initiatives long term.

Higher leverage and weak FCF growth

Rising leverage combined with negative free cash flow growth tightens financial flexibility and raises interest burden. This structural funding pressure limits capital allocation choices, slows deleveraging and increases vulnerability during prolonged revenue or margin recovery.

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

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Japan Foods Holding Financial Statement Overview

Summary

Financials are pressured by declining revenue and weak profitability (negative net profit and EBIT margins). Cash generation from operations is comparatively strong, but leverage has risen and free cash flow growth is negative, limiting flexibility.

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

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 0.13, above the 50-day MA of 0.14, and above the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 31.45 is Neutral, neither overbought nor oversold. The STOCH value of 31.25 is Neutral, 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$20.06M	―	-41.54%	―	-11.33%	-333.07%