Balnibarbi Co., Ltd. (3418) AI Stock Analysis

Balnibarbi Co., Ltd.

(TSE/TYO:3418)

Select Model

Rating:44Neutral

Price Target:JPY 1,019.00▼(-3.14% Downside)

Action:reiterated

Date:09/15/26

The overall score is 44, reflecting significant headwinds. The primary concern is the company's weak financial health, characterized by declining profitability and persistent negative free cash flow despite revenue growth. This is compounded by a bearish technical outlook with the stock in a downtrend across all key moving averages, and an extremely high valuation that does not appear justified by the deteriorating fundamentals.

Positive Factors

Revenue ExpansionMeaningful revenue expansion indicates that the company has continued to grow its foodservice and hospitality business over multiple years. A larger revenue base can support operating scale, broaden customer reach, and provide a foundation for restoring profitability if cost discipline improves.

Negative Factors

Sharp Profitability DeteriorationThe steep decline in net margin indicates that revenue growth is not translating efficiently into bottom-line earnings. Persistently thin profitability leaves less protection against operating cost pressure and makes future earnings more dependent on reversing the deterioration in operating performance.

Balnibarbi Co., Ltd. (3418) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 11.38B
Dividend Yield: 0.71%
Average Volume (3M): 16.36K
Price to Earnings (P/E): 101.3
Beta (1Y): 0.50
Revenue Growth: 5.22%
EPS Growth: -74.71%
Country: Japan
Employees: 695
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Restaurants

Balnibarbi Co., Ltd. Business Overview & Revenue Model

Company Description

Balnibarbi Co.,Ltd. operates and manages restaurants in Japan. It operates through the Restaurant and Estate Build-Up Business segments. The company offers consulting services for restaurant planning and management. It also engages in the manufacture...

How the Company Makes Money

Balnibarbi primarily makes money by selling food and beverages to end customers through its restaurant and café operations. Key revenue streams typically include (1) on-premise and takeout sales from company-operated stores (menu items such as meals,...

Balnibarbi Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Revenue growth is strong, but profitability is declining with contracting net and EBIT margins. The balance sheet shows improving leverage, but return on equity has halved. Critically, free cash flow is deeply negative, indicating the company is not self-funding its growth and earnings quality is weak.

Income Statement

48Neutral

Balance Sheet

55Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Jul 2026	Jul 2025	Jul 2024	Jul 2023	Jul 2022
Income Statement
Total Revenue	15.09B	15.09B	14.34B	13.45B	13.36B	9.97B
Gross Profit	11.21B	11.21B	10.18B	9.52B	9.27B	6.51B
EBITDA	1.01B	1.02B	1.23B	1.04B	1.47B	735.56M
Net Income	112.32M	112.32M	428.82M	538.22M	673.46M	123.78M
Balance Sheet
Total Assets	14.91B	14.91B	13.54B	10.22B	8.83B	8.89B
Cash, Cash Equivalents and Short-Term Investments	3.14B	3.14B	3.39B	1.85B	1.59B	2.68B
Total Debt	6.28B	6.28B	5.10B	4.21B	3.49B	4.17B
Total Liabilities	8.78B	8.78B	7.47B	6.79B	5.85B	6.53B
Stockholders Equity	5.99B	5.99B	5.94B	3.30B	2.85B	2.25B
Cash Flow
Free Cash Flow	0	-1.40B	-766.59M	-335.82M	-184.21M	769.85M
Operating Cash Flow	0	942.56M	1.12B	424.67M	548.67M	1.21B
Investing Cash Flow	0	-2.80B	-1.81B	-784.09M	-952.42M	-448.82M
Financing Cash Flow	0	1.10B	2.23B	632.81M	-743.47M	-379.68M

Balnibarbi Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1052.00

Price Trends

50DMA1053.62Negative

100DMA1077.01Negative

200DMA1082.49Negative

Market Momentum

MACD1.93Positive

RSI45.57Neutral

STOCH23.19Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3418, the sentiment is Negative. The current price of 1052.00 is below the 20-day moving average (MA) of 1057.65, below the 50-day MA of 1053.62, and below the 200-day MA of 1082.49, indicating a bearish trend. The MACD of 1.93 indicates Positive momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3418.

Balnibarbi Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3418 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3082	56Neutral	JPY 10.80B	49.95	―	0.76%	11.12%	-28.09%
JP:3175	55Neutral	JPY 12.15B	18.39	―	―	1.41%	81.10%
JP:8207	53Neutral	JPY 11.57B	-21.39	―	―	1.19%	-671.98%
JP:3063	52Neutral	JPY 13.72B	84.30	―	0.45%	-2.36%	141.91%
JP:3053	49Neutral	JPY 12.78B	75.94	―	―	9.99%	―
JP:3418	44Neutral	JPY 11.36B	101.25	―	0.71%	5.22%	-74.71%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3418 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3418	Balnibarbi Co., Ltd.	1052.00	-52.57	-4.76%
JP:3053	Pepper Food Service Co., Ltd.	208.00	28.00	15.56%
JP:3063	j-Group Holdings Corp.	1106.00	357.67	47.80%
JP:3082	KICHIRI HOLDINGS & Co., Ltd.	985.00	71.27	7.80%
JP:3175	AP Holdings Co., Ltd.	937.00	-8.00	-0.85%
JP:8207	Ten Allied Co., Ltd.	289.00	13.00	4.71%

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: Sep 15, 2026

Balnibarbi Co., Ltd. AI Stock Analysis