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GOKURAKUYU HOLDINGS CO. LTD. (2340) AI Stock Analysis

JP:2340

GOKURAKUYU HOLDINGS CO. LTD.

(TSE/TYO:2340)

Select Model
Rating:75Outperform
Price Target:JPY 577.00â–²(15.40% Upside)
Action:upgraded
Date:08/21/26

The company's financial health is the primary driver of the score, reflecting a successful turnaround with strong profitability and a conservative balance sheet. This is supported by a moderately positive technical trend and a fair valuation. The main risk is the recent negative free cash flow, which requires monitoring to ensure growth investments yield adequate returns.

Positive Factors
Profitability TurnaroundThe sustained move into positive earnings and sharply higher EBIT indicates improved operating execution and cost absorption. This creates a stronger base for funding facility operations and future growth than the company had during its loss-making period.
Negative Factors
Negative Free Cash FlowNegative free cash flow weakens the quality of the earnings recovery because profits are not consistently converting into cash after capital needs. Persistent investment requirements could limit debt reduction, distributions, or expansion if operating cash flow softens.

GOKURAKUYU HOLDINGS CO. LTD. (2340) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:2340+4.58%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 15.92B
Dividend Yield
1.20%
Average Volume (3M)
34.83K
Price to Earnings (P/E)
18.7
Beta (1Y)
0.43
Revenue Growth
3.63%
EPS Growth
10.51%
Country
Japan
Employees
188
Sector
Consumer Cyclical
Sector Strength
61
Industry
Leisure

GOKURAKUYU HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Gokurakuyu Holdings Co., Ltd., through its subsidiaries, primarily manages, operates, and franchises spa facilities bearing the Gokurakuyu and RAKU SPA brands, serving markets both within Japan and across the globe. Beyond its wellness endeavors, the...

How the Company Makes Money

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GOKURAKUYU HOLDINGS CO. LTD. Financial Statement Overview

Summary

Strong financial recovery with consistent revenue growth and a return to profitability. The balance sheet is robust, featuring low debt and a healthy 19% ROE. The score is tempered slightly by a recent dip into negative free cash flow due to elevated capex, though operating cash flow remains solid.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

75Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue16.26B16.25B15.16B14.08B12.77B10.04B
Gross Profit2.70B2.73B2.53B2.06B1.31B552.93M
EBITDA1.85B1.95B1.73B1.44B821.82M387.04M
Net Income844.61M928.95M769.85M697.45M-304.46M-1.98B
Balance Sheet
Total Assets12.60B13.07B13.02B11.35B15.17B17.27B
Cash, Cash Equivalents and Short-Term Investments1.16B1.52B2.90B2.87B5.49B6.23B
Total Debt2.36B2.50B3.19B4.22B9.24B11.40B
Total Liabilities7.81B8.17B9.20B8.35B15.02B17.29B
Stockholders Equity4.79B4.91B3.82B3.00B149.35M-12.70M
Cash Flow
Free Cash Flow0-661.07M1.22B530.61M482.97M1.03B
Operating Cash Flow01.30B2.20B1.58B836.24M1.50B
Investing Cash Flow0-2.08B-1.21B-1.11B175.55M-603.79M
Financing Cash Flow0-595.90M-957.73M-2.66B-1.76B404.62M

GOKURAKUYU HOLDINGS CO. LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price500.00

Price Trends

50DMA516.42Negative
100DMA505.34Negative
200DMA493.44Positive

Market Momentum

MACD-4.45Positive
RSI35.52Neutral
STOCH3.70Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2340, the sentiment is Negative. The current price of 500.00 is below the 20-day moving average (MA) of 506.90, below the 50-day MA of 516.42, and above the 200-day MA of 493.44, indicating a neutral trend. The MACD of -4.45 indicates Positive momentum. The RSI at 35.52 is Neutral, neither overbought nor oversold. The STOCH value of 3.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2340.

GOKURAKUYU HOLDINGS CO. LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:2340 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4680JP:468077OutperformJPY 370.13B20.2720.75%1.41%――
JP:7085JP:708577OutperformJPY 96.79B19.85―1.75%15.50%14.56%
JP:2340JP:234075OutperformJPY 16.09B18.72―1.20%3.63%10.51%
JP:4801JP:480167NeutralJPY 25.25B29.16―1.77%4.34%103.26%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:4343JP:434345NeutralJPY 53.49B17.30―0.92%10.11%―

* Consumer Cyclical Sector Average

Performance Comparison

-20%0%20%40%JP:2340JP:4680JP:4343JP:4801JP:7085Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:2340 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2340GOKURAKUYU HOLDINGS CO. LTD.502.0021.004.37%
JP:4680ROUND ONE Corporation1280.00217.5120.47%
JP:4343AEON Fantasy Co., Ltd.2704.00-42.27-1.54%
JP:4801Central Sports Co., Ltd.2254.00-104.98-4.45%
JP:7085Curves Holdings Co., Ltd.1063.00350.5649.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 21, 2026