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HotLand Co., Ltd. (3196) AI Stock Analysis
HotLand Co., Ltd.
(TSE/TYO:3196)
HotLand's stock receives a low overall score primarily due to deteriorating financial performance, including declining profitability, rising debt, and negative free cash flow. The bearish technical picture, with the stock below all key moving averages, reinforces the negative outlook. Additionally, the high P/E ratio indicates overvaluation relative to current earnings. While revenue growth over the longer term is a positive, the recent challenges outweigh this strength, resulting in a score of 42.
HotLand Co., Ltd. (3196) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 41.33B
- Dividend Yield
- 0.82%
- Average Volume (3M)
- 92.39K
- Price to Earnings (P/E)
- 48.9
- Beta (1Y)
- 0.29
- Revenue Growth
- 8.98%
- EPS Growth
- 18.98%
- Country
- Japan
- Employees
- 1,099
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
HotLand Co., Ltd. Business Overview & Revenue Model
Company Description
HOTLAND Co.,Ltd. operates a diverse portfolio of dining establishments across Japan and internationally. Its ventures also encompass the creation and management of Takoyaki outlets, various specialty retail concepts, and bar venues. Furthermore, the...
How the Company Makes Money
HotLand primarily makes money by selling food and beverages to customers through its restaurant operations. Its key revenue streams include (1) sales from directly operated restaurants (company-run stores), where revenue is generated from in-store di...
HotLand Co., Ltd. Financial Statement Overview
Summary
HotLand has shown strong revenue growth over the past five years, but recent performance indicates headwinds: revenue growth slowed to 4.8% in 2025, net income dropped sharply to ¥405 million (0.8% margin), and gross margin declined from 61% to 56%. The balance sheet has become more leveraged, with debt exceeding equity (debt/equity 1.04) and free cash flow turned negative. While operating cash flow remains positive, the declining coverage ratio and negative free cash flow limit financial flexibility. Overall, financial health is weak.
Income Statement
35NegativeBalance Sheet
40NegativeCash Flow
30Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.05B | 51.04B | 46.13B | 38.71B | 32.16B | 29.68B |
| Gross Profit | 29.04B | 28.64B | 25.87B | 22.16B | 18.56B | 18.07B |
| EBITDA | 3.53B | 3.77B | 4.28B | 3.10B | 3.29B | 4.40B |
| Net Income | 592.63M | 405.40M | 1.85B | 1.02B | 1.36B | 2.08B |
Balance Sheet | ||||||
| Total Assets | 35.59B | 33.46B | 29.03B | 24.27B | 22.06B | 21.31B |
| Cash, Cash Equivalents and Short-Term Investments | 6.69B | 4.81B | 3.73B | 2.86B | 3.34B | 3.16B |
| Total Debt | 12.83B | 11.78B | 7.61B | 6.16B | 4.87B | 5.39B |
| Total Liabilities | 23.31B | 21.27B | 16.49B | 13.51B | 11.38B | 12.19B |
| Stockholders Equity | 11.47B | 11.34B | 11.84B | 10.28B | 10.20B | 8.68B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -1.31B | 1.08B | 709.68M | 1.23B | 3.63B |
| Operating Cash Flow | 0 | 2.60B | 3.95B | 2.94B | 2.90B | 5.15B |
| Investing Cash Flow | 0 | -5.01B | -3.76B | -2.68B | -1.84B | -2.40B |
| Financing Cash Flow | 0 | 3.50B | 645.82M | -740.75M | -909.35M | -1.82B |
HotLand 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:3196, the sentiment is Negative. The current price of 1620.00 is above the 20-day moving average (MA) of 1618.20, below the 50-day MA of 1636.82, and below the 200-day MA of 1732.11, indicating a bearish trend. The MACD of -10.63 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 12.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3196.
HotLand Co., Ltd. Peers Comparison
Overall Rating
JP:354775.6Outperform
JP:270571Outperform
JP:982871Outperform
JP:356165Neutral- JP:319642Neutral
Financial Indicators
| 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:2705 | 71Outperform | JPY 74.37B | 57.26 | ― | 0.20% | 18.05% | 9.09% |
| JP:9828 | 71Outperform | JPY 61.19B | 17.59 | ― | 2.03% | 17.21% | -27.52% |
| JP:3561 | 65Neutral | JPY 44.15B | 32.02 | 11.67% | 1.50% | 6.56% | -29.50% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| JP:3196 | 42Neutral | JPY 41.33B | 48.91 | ― | 0.82% | 8.98% | 18.98% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3196 | HotLand Co., Ltd. | 1594.00 | -460.14 | -22.40% | |
| JP:3561 | CHIKARANOMOTO HOLDINGS Co | 1462.00 | 92.25 | 6.74% | |
| JP:2705 | OOTOYA Holdings Co., Ltd. | 10250.00 | 4608.31 | 81.68% | |
| JP:3547 | Kushikatsu Tanaka Holdings Co. | 1926.00 | -291.44 | -13.14% | |
| JP:9828 | Genki Sushi Co., Ltd. | 3455.00 | 568.62 | 19.70% |
HotLand Co., Ltd. Corporate Events
Hotland Finalizes Third-Party Share Allotment to Fund Store Expansion
Hotland Holdings has finalized the number of new shares to be issued via third-party allotment, confirming the allocation of 526,400 shares out of 621,400 planned, at ¥1,567.56 per share for total proceeds of about ¥825 million. As a result...
Hotland Holdings Lifts Q1 Profit and Confirms Strong 2026 Outlook
Hotland Holdings posted first-quarter 2026 consolidated net sales of ¥13.8 billion, up 7.9% year on year, with operating profit edging up 1.6% to ¥753 million and profit attributable to owners of the parent surging 56.2% to ¥520 millio...
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 06, 2026