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Karula Co., Ltd. (2789) AI Stock Analysis
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Karula Co., Ltd.
(TSE/TYO:2789)
The score is primarily held back by financial quality: while the company’s turnaround is evident (revenue growth and sustained profitability), margin compression, still-elevated leverage, and weak/uneven free-cash-flow conversion reduce resilience. Technicals are supportive with an established uptrend and positive MACD, but elevated RSI points to near-term stretch. Valuation appears reasonable (mid-teens P/E) with a modest dividend yield.
Karula Co., Ltd. (2789) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 2.84B
- Dividend Yield
- 1.01%
- Average Volume (3M)
- 2,816
- Price to Earnings (P/E)
- 36.2
- Beta (1Y)
- 0.05
- Revenue Growth
- 1.85%
- EPS Growth
- -75.51%
- Country
- Japan
- Employees
- 250
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
Karula Co., Ltd. Business Overview & Revenue Model
Company Description
Karula Co.,LTD. operates a network of family-friendly Japanese restaurants throughout Japan, focusing its operations primarily within the Tohoku and Northern Kanto regions. Its diverse portfolio of dining establishments encompasses traditional Japane...
How the Company Makes Money
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Karula Co., Ltd. Financial Statement Overview
Summary
Income statement shows a solid recovery with steady revenue growth and profitability returning in 2024–2026, but recent margin compression (lower net and operating profitability vs. 2025) is a key risk. Balance sheet leverage has improved with meaningful debt reduction, yet debt-to-equity remains elevated (~1.05), which can amplify downside in a cyclical consumer business. Cash flow is positive but free-cash-flow conversion is weak (~20% of net income in 2026) and has been uneven, limiting flexibility.
Income Statement
63PositiveBalance Sheet
54NeutralCash Flow
49Neutral| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.60B | 7.54B | 7.26B | 6.84B | 6.04B | 5.20B |
| Gross Profit | 5.25B | 5.08B | 4.98B | 4.71B | 4.08B | 3.45B |
| EBITDA | 464.01M | 488.57M | 499.19M | 482.27M | 138.53M | -229.15M |
| Net Income | 78.50M | 239.98M | 363.31M | 437.00M | -61.35M | -448.63M |
Balance Sheet | ||||||
| Total Assets | 5.49B | 5.43B | 5.02B | 5.58B | 5.30B | 5.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.19B | 1.20B | 1.01B | 1.56B | 1.28B | 1.30B |
| Total Debt | 2.14B | 2.30B | 2.18B | 3.02B | 3.12B | 3.49B |
| Total Liabilities | 3.24B | 3.24B | 3.04B | 3.93B | 3.97B | 4.21B |
| Stockholders Equity | 2.24B | 2.19B | 1.98B | 1.65B | 1.34B | 1.41B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 89.34M | 299.53M | 422.90M | 109.30M | 51.70M |
| Operating Cash Flow | 0 | 440.62M | 382.02M | 504.03M | 186.11M | 127.41M |
| Investing Cash Flow | 0 | -346.60M | -55.68M | 2.32M | 45.05M | -31.71M |
| Financing Cash Flow | 0 | 98.47M | -868.89M | -223.11M | -369.17M | 296.20M |
Karula Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2789, the sentiment is Positive. The current price of 493.00 is above the 20-day moving average (MA) of 480.25, above the 50-day MA of 479.06, and above the 200-day MA of 470.85, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 84.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2789.
Karula Co., Ltd. Peers Comparison
Overall Rating
JP:307768Neutral- JP:278958Neutral
JP:138A58Neutral
JP:337254Neutral
JP:335850Neutral
JP:276241Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3077 | 68Neutral | JPY 8.18B | 14.99 | ― | ― | ― | ― |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| JP:2789 | 58Neutral | JPY 2.96B | 36.20 | ― | 1.01% | 1.85% | -75.51% |
| JP:138A | 58Neutral | JPY 3.11B | 25.02 | ― | 1.27% | 11.80% | -3.06% |
| JP:3372 | 54Neutral | JPY 2.92B | 31.74 | ― | ― | -2.53% | -75.19% |
| JP:3358 | 50Neutral | JPY 3.13B | 40.38 | ― | 1.19% | 49.12% | 274.67% |
| JP:2762 | 41Neutral | JPY 2.67B | -3.00 | ― | ― | 9.21% | 21.76% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:2789 | Karula Co., Ltd. | 493.00 | 15.87 | 3.33% | |
| JP:138A | Hikari Food Service Co. Ltd. | 3140.00 | 227.09 | 7.80% | |
| JP:2762 | Sanko Marketing Foods Co., Ltd. | 61.00 | -36.00 | -37.11% | |
| JP:3077 | Horiifoodservice Co., Ltd. | 1180.00 | 823.00 | 230.53% | |
| JP:3358 | Y.S. FOOD CO., LTD. | 84.00 | -4.06 | -4.61% | |
| JP:3372 | Kanmonkai Co., Ltd. | 213.00 | -25.00 | -10.50% |
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 04, 2026