Kaihan Co., Ltd. (3133) AI Stock Analysis

• Market Cap: ¥41.69B
• Dividend Yield: N/A
• Average Volume (3M): 515.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: 19.36%
• EPS Growth: -16.49%
• Country: JP
• Employees: 73
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -5.09
• Shares Outstanding: 56,495,785
• 10 Day Avg. Volume: 502,330
• 30 Day Avg. Volume: 515,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥663.00
• Price Target Upside: -10.16% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: ¥663.00 ▼(-10.16% Downside)

Kaihan Co., Ltd. faces significant financial challenges, with high leverage and negative profitability impacting its financial performance. The technical indicators suggest a bearish trend, and the valuation metrics indicate overvaluation. These factors collectively result in a low overall stock score, highlighting the need for strategic improvements to enhance financial stability and investor confidence.

Kaihan Co., Ltd. Business Overview & Revenue Model

Company Description

kaihan co.,Ltd. plans, develops, and operates restaurants in Japan. The company was formerly known as Kaihan, Ltd. and changed its name to kaihan co.,Ltd. in October 2006. kaihan co.,Ltd. was incorporated in 2003 and is based in Nagoya, Japan.

How the Company Makes Money

Kaihan Co., Ltd. generates revenue primarily through the sale of its electronic components and systems, which cater to various industries including telecommunications, automotive, and consumer electronics. The company operates on a business-to-business (B2B) model, selling its products directly to manufacturers and distributors. Key revenue streams include the sale of proprietary technology solutions, customized electronic components, and long-term contracts with major industry players. Additionally, Kaihan may benefit from strategic partnerships with other technology firms, allowing it to enhance its product offerings and expand its market reach, further contributing to its overall earnings.

Kaihan Co., Ltd. Financial Statement Overview

Summary

Kaihan Co., Ltd. is experiencing revenue growth but is hindered by profitability and cash flow challenges. The high leverage and negative margins suggest financial instability, requiring strategic improvements to enhance operational efficiency and financial health.

Income Statement

Kaihan Co., Ltd. has shown a consistent increase in revenue over the years, with a notable growth rate of 14.3% from 2024 to 2025. However, the company is struggling with profitability, as indicated by negative EBIT and net income margins. The gross profit margin remains relatively strong at 71.4% for 2025, but the persistent negative net profit margin highlights ongoing operational challenges.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. The equity ratio improved to 32.4% in 2025, suggesting better equity financing, but the return on equity remains negative due to ongoing net losses. The increase in total assets and stockholders' equity is a positive sign, yet the high leverage poses a risk.

Cash Flow

Kaihan Co., Ltd. faces challenges in cash flow management, with negative free cash flow and operating cash flow in 2025. The operating cash flow to net income ratio indicates inefficiencies in converting revenue into cash. Despite a reduction in free cash flow deficit, the company needs to improve its cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.79B	2.79B	2.44B	2.09B	776.66M	861.15M
Gross Profit	1.99B	1.99B	1.65B	1.38B	501.33M	603.53M
EBITDA	-394.94M	-336.21M	-517.08M	-908.61M	-358.05M	-916.42M
Net Income	-737.26M	-737.84M	-712.57M	-1.14B	-453.75M	-1.07B
Balance Sheet
Total Assets	4.58B	4.58B	3.62B	2.66B	2.12B	724.33M
Cash, Cash Equivalents and Short-Term Investments	436.60M	436.60M	804.67M	315.11M	1.51B	44.80M
Total Debt	2.29B	2.29B	1.98B	1.59B	1.18B	852.60M
Total Liabilities	3.09B	3.09B	2.73B	2.37B	1.67B	1.37B
Stockholders Equity	1.48B	1.48B	890.65M	290.65M	449.78M	-646.46M
Cash Flow
Free Cash Flow	0.00	-615.08M	-1.48B	-1.25B	-183.16M	-1.06B
Operating Cash Flow	0.00	-293.75M	-632.11M	-578.80M	-179.12M	-1.03B
Investing Cash Flow	0.00	-395.49M	-759.19M	-1.29B	41.28M	80.54M
Financing Cash Flow	0.00	321.17M	1.71B	625.30M	1.60B	628.83M

Kaihan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 738.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3133, the sentiment is Positive. The current price of 738 is above the 20-day moving average (MA) of 701.85, above the 50-day MA of 703.14, and below the 200-day MA of 853.84, indicating a neutral trend. The MACD of 0.78 indicates Negative momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 51.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3133.

Kaihan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3561	70 Outperform	¥47.14B	24.08	16.49%	1.15%	4.87%	-10.06%
8163	67 Neutral	¥53.47B	61.48	5.61%	0.58%	14.44%	-55.16%
7522	66 Neutral	¥40.71B	17.29	9.24%	1.00%	6.41%	-35.96%
3198	65 Neutral	¥50.14B	35.88	17.01%	1.18%	2.95%	-17.77%
3196	64 Neutral	¥45.69B	77.04	15.62%	0.62%	14.82%	-65.01%
3133	39 Underperform	¥41.69B	―	―	―	19.36%	-16.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%