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

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JP:2340

GOKURAKUYU HOLDINGS CO. LTD.

(TSE/TYO:2340)

Select Model
Rating:69Neutral
Price Target:JPY 562.00â–²(10.41% Upside)
Action:reiterated
Date:08/21/26

The score is driven primarily by improved financial performance from a clear earnings and balance-sheet turnaround, partially offset by volatile free cash flow (negative in 2026) and the legacy of prior balance-sheet stress. Technicals are supportive with price above major moving averages and positive MACD. Valuation is reasonable but not notably cheap, and the dividend yield is modest.

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+8.30%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 16.15B
Dividend Yield
1.18%
Average Volume (3M)
34.21K
Price to Earnings (P/E)
19.0
Beta (1Y)
0.40
Revenue Growth
1.01%
EPS Growth
-1.78%
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

null

GOKURAKUYU HOLDINGS CO. LTD. Financial Statement Overview

Summary

Strong turnaround in profitability with sustained revenue growth and sharply improved EBIT through 2024–2026. Balance sheet repair is meaningful as debt has fallen and equity has expanded, but the prior period’s stressed capital structure still elevates risk. Operating cash flow is positive, yet free cash flow volatility (turning negative in 2026) weakens the quality of the recovery.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

60Neutral
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 SentimentPositive
Last Price509.00

Price Trends

50DMA514.28Negative
100DMA507.92Positive
200DMA495.84Positive

Market Momentum

MACD-2.09Negative
RSI53.01Neutral
STOCH80.95Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2340, the sentiment is Positive. The current price of 509.00 is above the 20-day moving average (MA) of 504.00, below the 50-day MA of 514.28, and above the 200-day MA of 495.84, indicating a neutral trend. The MACD of -2.09 indicates Negative momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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:7085JP:708577OutperformJPY 96.98B19.91―1.75%15.50%14.56%
JP:2340JP:234069NeutralJPY 16.18B18.98―1.18%1.01%-1.78%
JP:4801JP:480167NeutralJPY 26.29B30.19―1.71%2.42%81.45%
JP:4680JP:468065NeutralJPY 417.40B21.4820.75%1.23%――
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:4343JP:434357NeutralJPY 57.69B18.57―0.86%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 '26Nov '26
JP:2340 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2340GOKURAKUYU HOLDINGS CO. LTD.509.0037.007.84%
JP:4680ROUND ONE Corporation1459.00489.1450.43%
JP:4343AEON Fantasy Co., Ltd.2902.0043.741.53%
JP:4801Central Sports Co., Ltd.2334.00-27.93-1.18%
JP:7085Curves Holdings Co., Ltd.1066.00347.7648.42%
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