Flying Garden Co., Ltd. (3317) AI Stock Analysis

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Flying Garden Co., Ltd.

(TSE/TYO:3317)

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Rating:80Outperform

Price Target:JPY 1,708.00▲(15.41% Upside)

Action:upgraded

Date:08/17/26

The score is driven primarily by strong financial quality (near-zero leverage and steady revenue growth), tempered by uneven free cash flow consistency. Supportive technical momentum and an attractive valuation (low P/E plus dividend yield) further lift the overall rating.

Positive Factors

Debt-Free Balance SheetAn effectively debt-free balance sheet limits interest and refinancing risk, preserving flexibility to maintain restaurants, fund expansion, or absorb cost pressure. The steadily growing equity base also provides a durable capital cushion for the operating business.

Negative Factors

Long-Term Margin CompressionThe multi-year decline in gross margin suggests that food, labor, or other operating costs are absorbing more of each sales yen. Persistent compression could limit operating leverage and make earnings increasingly dependent on price increases or efficiency gains.

Flying Garden Co., Ltd. (3317) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.27B
Dividend Yield: 1.24%
Average Volume (3M): 1,651
Price to Earnings (P/E): 9.5
Beta (1Y): 0.39
Revenue Growth: 9.14%
EPS Growth: 12.36%
Country: Japan
Employees: 173
Sector: General
Sector Strength: 55
Industry: Restaurants

Flying Garden Co., Ltd. Business Overview & Revenue Model

Company Description

Flying Garden Co., Ltd., headquartered in Oyama, Japan, manages a network of restaurants throughout the country, all operating under the Flying Garden brand. Established in 1976, the company is primarily known for its distinctive "bomb" hamburgers.

How the Company Makes Money

Flying Garden Co., Ltd. makes money primarily by selling food and beverages to customers through its restaurant operations. Revenue is generated from in-store dining transactions (menu items such as meals, side dishes, and drinks) and any associated...

Flying Garden Co., Ltd. Financial Statement Overview

Summary

Strong financial foundation led by an effectively debt-free balance sheet and steady multi-year revenue growth. Profitability is solid but margins have softened over time, and free cash flow has been volatile with weaker cash conversion (FCF ~40% of net income in 2026), which limits the score.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	9.42B	9.20B	8.27B	7.79B	7.24B	6.49B
Gross Profit	6.11B	5.77B	5.35B	5.22B	4.95B	4.51B
EBITDA	874.72M	870.65M	817.18M	749.00M	626.07M	383.70M
Net Income	458.17M	454.71M	352.14M	396.46M	291.72M	345.03M
Balance Sheet
Total Assets	5.27B	5.41B	4.83B	4.47B	3.99B	3.93B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.73B	1.55B	1.60B	1.35B	1.34B
Total Debt	0	0	0	0	0	0
Total Liabilities	1.57B	1.74B	1.58B	1.52B	1.40B	1.59B
Stockholders Equity	3.70B	3.67B	3.26B	2.95B	2.59B	2.34B
Cash Flow
Free Cash Flow	0	291.50M	13.56M	309.55M	21.81M	664.90M
Operating Cash Flow	0	724.97M	681.34M	644.85M	416.64M	750.81M
Investing Cash Flow	0	-588.97M	-806.79M	-355.67M	-366.76M	-83.03M
Financing Cash Flow	0	-43.61M	-43.38M	-36.30M	-43.28M	-33.35M

Flying Garden Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1480.00

Price Trends

50DMA1488.72Negative

100DMA1460.83Positive

200DMA1495.27Negative

Market Momentum

MACD-7.25Positive

RSI47.74Neutral

STOCH36.49Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3317, the sentiment is Neutral. The current price of 1480.00 is below the 20-day moving average (MA) of 1491.00, below the 50-day MA of 1488.72, and below the 200-day MA of 1495.27, indicating a bearish trend. The MACD of -7.25 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 36.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3317.

Flying Garden Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3317 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3317	80Outperform	JPY 4.20B	9.52	―	1.24%	9.14%	12.36%
JP:2695	76Outperform	JPY 136.48B	62.12	―	0.88%	4.28%	-3.16%
JP:7581	72Outperform	JPY 418.73B	37.85	8.59%	0.41%	17.44%	-1.16%
JP:7630	71Outperform	JPY 167.44B	72.96	―	1.53%	8.36%	-24.27%
JP:2705	70Outperform	JPY 74.66B	62.44	―	0.19%	17.31%	8.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:8153	55Neutral	JPY 138.14B	34.91	―	0.81%	6.32%	10.13%

* General Sector Average

Performance Comparison

JP:3317 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3317	Flying Garden Co., Ltd.	1480.00	63.00	4.45%
JP:7581	Saizeriya Co	8600.00	3176.42	58.57%
JP:2695	Kura Sushi, Inc.	1698.00	30.68	1.84%
JP:2705	OOTOYA Holdings Co., Ltd.	10480.00	4768.41	83.49%
JP:7630	Ichibanya Co., Ltd.	1044.00	144.64	16.08%
JP:8153	MOS FOOD SERVICES, INC.	4440.00	460.28	11.57%

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: Aug 17, 2026

Flying Garden Co., Ltd. AI Stock Analysis