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Towa Food Service Co., Ltd.
(3329)
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Rating:73Outperform
Price Target:
¥2,374.00
▲(11.14% Upside)
Action:Upgraded
Date:08/30/26
The score is driven primarily by strong financial health—especially an ultra-low leverage balance sheet and sustained profitability—tempered by recent operating margin softness and uneven free cash flow. Technicals are supportive with the stock above key moving averages and positive MACD, though momentum indicators are nearing stretched levels. Valuation is a mild headwind due to a ~22.9 P/E and a modest ~1.0% dividend yield.
Positive Factors
Ultra-low leverage and strong balance sheet
The exceptionally conservative balance sheet reduces refinancing risk and preserves flexibility for investment or shareholder returns. Growing equity and minimal debt should help the company withstand cost pressures and changing restaurant demand over the next several years.
Negative Factors
Operating profit softened despite higher sales
Falling operating profit while sales rise signals pressure on labor, food or other operating costs. If this persists, it could limit margin expansion and reduce the benefit of continued revenue growth, making profitability more sensitive to execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Ultra-low leverage and strong balance sheet
The exceptionally conservative balance sheet reduces refinancing risk and preserves flexibility for investment or shareholder returns. Growing equity and minimal debt should help the company withstand cost pressures and changing restaurant demand over the next several years.
Read all positive factors
Towa Food Service Co., Ltd. (3329) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.30B
Dividend Yield1.03%
Average Volume (3M)2.51K
Price to Earnings (P/E)22.4
Beta (1Y)0.05
Revenue Growth4.07%
EPS Growth5.70%
CountryJP
Employees214
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)93.05
Shares Outstanding8,186,400
10 Day Avg. Volume4,210
30 Day Avg. Volume2,510
Financial Highlights & Ratios
PEG Ratio5.31
Price to Book (P/B)2.15
Price to Sales (P/S)1.25
P/FCF Ratio33.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Towa Food Service Co., Ltd. Business Overview & Revenue Model
Company Description
Towa Food Service Co., Ltd. manages a portfolio of dining establishments, encompassing both cafes and restaurants, throughout Japan. This enterprise was founded in 1974, and its primary corporate offices are situated in Tokyo....
How the Company Makes Money
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Towa Food Service Co., Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
90
Very Positive
Cash Flow
68
Positive
| Breakdown | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.31B | 12.81B | 12.38B | 10.85B | 8.25B |
| Gross Profit | 9.67B | 9.10B | 8.72B | 7.58B | 5.42B |
| EBITDA | 1.32B | 1.39B | 1.35B | 949.76M | -299.34M |
| Net Income | 751.04M | 720.70M | 704.40M | 425.78M | 698.95M |
Balance Sheet | |||||
| Total Assets | 9.82B | 9.19B | 8.74B | 8.46B | 8.54B |
| Cash, Cash Equivalents and Short-Term Investments | 4.77B | 4.36B | 4.02B | 3.82B | 3.70B |
| Total Debt | 14.02M | 13.25M | 18.18M | 605.46M | 604.49M |
| Total Liabilities | 2.05B | 2.02B | 2.13B | 2.45B | 2.86B |
| Stockholders Equity | 7.77B | 7.17B | 6.62B | 6.02B | 5.68B |
Cash Flow | |||||
| Free Cash Flow | 504.36M | 484.78M | 971.38M | 271.12M | 1.76B |
| Operating Cash Flow | 1.04B | 943.56M | 1.32B | 645.73M | 1.86B |
| Investing Cash Flow | -1.01B | -735.92M | -401.37M | -832.69M | -1.47B |
| Financing Cash Flow | -165.74M | -166.32M | -723.29M | -91.10M | -65.38M |
Towa Food Service Co., Ltd. Technical Analysis
Positive
2136.00
Price Trends
2109.84
Positive
2086.40
Positive
2089.47
Positive
Market Momentum
8.91
Negative
62.75
Neutral
80.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3329, the sentiment is Positive. The current price of 2136 is above the 20-day moving average (MA) of 2127.50, above the 50-day MA of 2109.84, and above the 200-day MA of 2089.47, indicating a bullish trend. The MACD of 8.91 indicates Negative momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3329.
Towa Food Service Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥17.30B | 22.38 | ― | 1.03% | 4.07% | 5.70% | |
66 Neutral | ¥20.41B | 38.94 | ― | 0.80% | 49.85% | -37.59% | |
65 Neutral | ¥17.75B | 19.10 | ― | 0.39% | 1.13% | 161.77% | |
62 Neutral | ¥19.28B | 47.32 | ― | 0.56% | 10.61% | 156.20% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ¥19.49B | 73.65 | ― | 0.43% | -4.99% | 4626.27% | |
46 Neutral | ¥16.90B | -47.68 | ― | 0.69% | 3.30% | 49.56% |
* Consumer Cyclical Sector Average
JP:3329
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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.