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

Kaihan Co., Ltd.

(TSE/TYO:3133)

Select Model

Rating:37Underperform

Price Target:JPY 27.00▼(-3.57% Downside)

Action:reiterated

Date:10/24/26

The overall score is at the minimum of 37, reflecting a confluence of severe risks. The most significant factor is the company's dire financial performance, marked by massive unprofitability, negative cash flows, and a debt-heavy balance sheet that threatens its viability. This is compounded by a bearish technical trend with the stock in a clear downtrend across all timeframes. The negative P/E ratio further underscores the lack of earnings power. The company faces existential financial challenges, making it a highly speculative and risky investment.

Positive Factors

Revenue ExpansionSharp revenue expansion provides evidence that the company has been able to grow its sales base over time, including a strong rebound after 2022. If this trajectory is maintained, it can provide a broader base from which management may improve operating efficiency and pursue sustainable profitability.

Negative Factors

Persistent Operating LossesPersistent operating and EBITDA losses show that revenue growth and high gross margins are not translating into sustainable earnings. The severe 2026 net loss, with a margin near -163%, indicates substantial profitability pressure that could remain a central turnaround challenge over the next several quarters.

Kaihan Co., Ltd. (3133) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.02B
Dividend Yield: ―
Average Volume (3M): 1.82M
Price to Earnings (P/E): -0.3
Beta (1Y): 0.82
Revenue Growth: 1.16%
EPS Growth: -469.95%
Country: Japan
Employees: 83
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Restaurants

Kaihan Co., Ltd. Business Overview & Revenue Model

Company Description

kaihan co.,Ltd. plans, develops, and operates restaurants in Japan. The company develops, generates, and sells electricity through renewable energy resources. It also provides consulting services on the establishment and operation of medial instituti...

Kaihan Co., Ltd. Financial Statement Overview

Summary

Financial health is critically weak. While revenue growth is strong and gross margins are healthy, the company suffers from persistent and widening net losses, negative operating cash flow, and a highly leveraged balance sheet with a debt-to-equity ratio of 5.9. The severe cash burn and shrinking equity base present a high risk to financial viability.

Income Statement

15Very Negative

Balance Sheet

12Very Negative

Cash Flow

8Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.99B	3.15B	2.79B	2.44B	2.09B	776.66M
Gross Profit	2.11B	2.25B	1.99B	1.65B	1.38B	501.33M
EBITDA	-4.75B	-4.60B	-336.21M	-517.08M	-908.61M	-358.05M
Net Income	-5.37B	-5.14B	-737.84M	-712.57M	-1.14B	-453.75M
Balance Sheet
Total Assets	4.89B	5.02B	4.58B	3.62B	2.66B	2.12B
Cash, Cash Equivalents and Short-Term Investments	360.64M	472.31M	436.60M	804.67M	315.11M	1.51B
Total Debt	2.48B	2.78B	2.29B	1.98B	1.59B	1.18B
Total Liabilities	3.95B	4.52B	3.09B	2.73B	2.37B	1.67B
Stockholders Equity	923.21M	473.57M	1.48B	890.65M	290.65M	449.78M
Cash Flow
Free Cash Flow	0	-1.93B	-615.08M	-1.48B	-1.25B	-183.16M
Operating Cash Flow	0	-1.10B	-293.75M	-632.11M	-578.80M	-179.12M
Investing Cash Flow	0	-1.31B	-395.49M	-759.19M	-1.29B	41.28M
Financing Cash Flow	0	2.41B	321.17M	1.71B	625.30M	1.60B

Kaihan Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price28.00

Price Trends

50DMA50.24Negative

100DMA73.82Negative

200DMA206.34Negative

Market Momentum

MACD-5.89Negative

RSI37.13Neutral

STOCH6.70Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3133, the sentiment is Negative. The current price of 28.00 is below the 20-day moving average (MA) of 32.75, below the 50-day MA of 50.24, and below the 200-day MA of 206.34, indicating a bearish trend. The MACD of -5.89 indicates Negative momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 6.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3133.

Kaihan Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3133 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3547	76Outperform	JPY 20.85B	52.37	―	0.78%	62.78%	-57.81%
JP:7554	69Neutral	JPY 22.85B	19.11	―	1.46%	42.20%	―
JP:3068	62Neutral	JPY 19.85B	48.72	―	0.54%	10.61%	156.20%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:9850	51Neutral	JPY 21.07B	532.37	―	0.76%	1.71%	-91.47%
JP:2882	44Neutral	JPY 22.81B	43.73	―	0.75%	3.77%	75.23%
JP:3133	37Underperform	JPY 2.02B	-0.31	―	―	1.16%	-469.95%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3133 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3133	Kaihan Co., Ltd.	29.00	-599.00	-95.38%
JP:2882	EAT&HOLDINGS Co., Ltd.	2005.00	45.42	2.32%
JP:3068	WDI Corporation	3135.00	151.40	5.07%
JP:3547	Kushikatsu Tanaka Holdings Co.	1926.00	-291.44	-13.14%
JP:7554	Kourakuen Holdings Corporation	1196.00	180.04	17.72%
JP:9850	GOURMET KINEYA CO., LTD.	921.00	-29.25	-3.08%

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: Oct 24, 2026

Kaihan Co., Ltd. AI Stock Analysis