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OOTOYA Holdings Co., Ltd.
(2705)
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Rating:72Outperform
Price Target:
¥10,621.00
▲(90.00% Upside)
Action:Upgraded
Date:07/30/26
The score is driven primarily by solid financial performance (revenue growth and improved profitability, though margins and cash-flow stability are key watch-items) and strong technical trend strength (price above key moving averages). These positives are meaningfully offset by an expensive valuation (high P/E and very low dividend yield).
Positive Factors
Strong revenue growth and operational turnaround
Sustained revenue expansion and the shift from past losses to positive operating profit indicate improving store economics and customer demand. This provides a stronger earnings base over the next several quarters, although execution remains important.
Negative Factors
Thin net margins and softer gross margin
Thin net profitability leaves limited protection against food, labor and occupancy-cost inflation. The recent gross-margin decline suggests that sales growth may not fully translate into earnings unless pricing, menu mix and operating efficiency offset persistent cost pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and operational turnaround
Sustained revenue expansion and the shift from past losses to positive operating profit indicate improving store economics and customer demand. This provides a stronger earnings base over the next several quarters, although execution remains important.
Read all positive factors
OOTOYA Holdings Co., Ltd. (2705) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥68.86B
Dividend Yield0.21%
Average Volume (3M)20.69K
Price to Earnings (P/E)53.0
Beta (1Y)0.09
Revenue Growth18.05%
EPS Growth9.09%
CountryJP
Employees738
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)179.00
Shares Outstanding7,267,800
10 Day Avg. Volume28,660
30 Day Avg. Volume20,686
Financial Highlights & Ratios
PEG Ratio7.85
Price to Book (P/B)12.06
Price to Sales (P/S)1.34
P/FCF Ratio31.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
OOTOYA Holdings Co., Ltd. Business Overview & Revenue Model
Company Description
OOTOYA Holdings Co., Ltd., through its subsidiaries, strategically develops, manages, and operates a chain of restaurants both within Japan and overseas. These dining establishments are best known for their main offerings: traditional set meals an...
How the Company Makes Money
OOTOYA Holdings Co., Ltd. makes money primarily through foodservice sales generated by its restaurant operations. The main revenue stream is customer spending at OOTOYA-branded restaurants (and any other brands it operates), which includes sales o...
OOTOYA Holdings Co., Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.59B | 37.02B | 31.39B | 27.89B | 23.85B | 18.83B |
| Gross Profit | 21.22B | 20.61B | 18.27B | 16.58B | 13.47B | 10.86B |
| EBITDA | 2.91B | 2.81B | 2.08B | 1.94B | 774.00M | 1.88B |
| Net Income | 1.30B | 1.23B | 1.23B | 1.40B | 277.00M | 1.91B |
Balance Sheet | ||||||
| Total Assets | 11.50B | 11.91B | 11.96B | 10.93B | 9.67B | 9.81B |
| Cash, Cash Equivalents and Short-Term Investments | 3.44B | 3.52B | 4.24B | 4.54B | 3.94B | 4.33B |
| Total Debt | 850.00M | 1.00B | 1.60B | 1.00B | 1.65B | 2.31B |
| Total Liabilities | 6.89B | 7.48B | 7.24B | 5.98B | 5.95B | 6.39B |
| Stockholders Equity | 4.29B | 4.11B | 4.48B | 4.78B | 3.59B | 3.34B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.59B | 683.00M | 1.47B | 234.00M | 2.22B |
| Operating Cash Flow | 0.00 | 3.14B | 2.13B | 2.23B | 726.00M | 2.35B |
| Investing Cash Flow | 0.00 | -1.63B | -1.49B | -787.00M | -478.00M | -160.00M |
| Financing Cash Flow | 0.00 | -2.24B | -1.05B | -889.00M | -773.00M | -1.59B |
OOTOYA Holdings Co., Ltd. Technical Analysis
Positive
5590.00
Price Trends
8490.80
Positive
7862.00
Positive
7151.01
Positive
Market Momentum
378.00
Negative
59.97
Neutral
44.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2705, the sentiment is Positive. The current price of 5590 is below the 20-day moving average (MA) of 9152.50, below the 50-day MA of 8490.80, and below the 200-day MA of 7151.01, indicating a bullish trend. The MACD of 378.00 indicates Negative momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 44.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2705.
OOTOYA Holdings Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥349.43B | 29.10 | 9.75% | 0.49% | 16.06% | 12.26% | |
72 Outperform | ¥68.86B | 53.02 | ― | 0.21% | 18.05% | 9.09% | |
70 Outperform | ¥1.89T | 37.17 | 16.56% | 0.63% | 11.88% | 45.16% | |
64 Neutral | ¥248.52B | 43.35 | ― | 0.57% | 10.76% | 48.44% | |
63 Neutral | ¥769.87B | 40.41 | 10.08% | 0.71% | 11.29% | 22.50% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | ¥108.70B | 26.16 | ― | 0.45% | 17.68% | 41.66% |
* Consumer Cyclical Sector Average
JP:2705
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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.