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Kairikiya Co.,Ltd. (5891) AI Stock Analysis

JP:5891

Kairikiya Co.,Ltd.

(TSE/TYO:5891)

Select Model
Rating:50Neutral
Price Target:JPY 1,648.00â–¼(-0.90% Downside)
Action:reiterated
Date:08/21/26

The overall score reflects a balance between growth and profitability concerns. The company's strong revenue expansion and positive technical momentum are significant positives. However, these are heavily counterbalanced by severe declines in profitability and cash flow, which raise questions about the sustainability and quality of the growth. The negative P/E ratio further limits the valuation appeal.

Positive Factors
Strong Revenue GrowthSustained revenue expansion indicates solid customer demand and successful business growth. Continued top-line momentum can support scale benefits and strengthen Kairikiya’s competitive position if profitability is restored.
Negative Factors
Deteriorating Cash GenerationThe sharp decline in operating cash flow and negative free cash flow indicate weaker earnings conversion and possible working-capital or investment demands. Persistent deterioration could limit self-funded growth and increase reliance on external financing.

Kairikiya Co.,Ltd. (5891) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:5891+4.74%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 9.38B
Dividend Yield
1.39%
Average Volume (3M)
4,490
Price to Earnings (P/E)
-62.1
Beta (1Y)
0.24
Revenue Growth
51.13%
EPS Growth
-127.84%
Country
Japan
Employees
287
Sector
General
Sector Strength
55
Industry
Restaurants

Kairikiya Co.,Ltd. Business Overview & Revenue Model

Company Description

SAKIGAKE Holdings Co.,Ltd. engages in the restaurant management business in Japan. The company also provides store management and franchise chain development services. The company was formerly known as Kairikiya Co., Ltd. and changed its name to SAKI...

How the Company Makes Money

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Kairikiya Co.,Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Strong 20% revenue growth is offset by significant margin compression (net margin fell to 2.0% from 4.4%), a 44% drop in net income, negative free cash flow, and a 47% decline in operating cash flow. The balance sheet shows rising debt, though leverage remains moderate.

Income Statement

48Neutral

Balance Sheet

52Neutral

Cash Flow

38Negative
Financial statement breakdown
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue14.72B12.27B10.58B8.82B7.09B
Gross Profit10.03B8.49B7.32B6.26B5.02B
EBITDA973.16M1.09B867.67M625.15M525.52M
Net Income297.44M535.59M390.49M314.20M234.48M
Balance Sheet
Total Assets9.68B8.10B7.53B5.61B4.86B
Cash, Cash Equivalents and Short-Term Investments3.45B3.40B3.59B2.08B1.58B
Total Debt1.84B669.43M959.94M1.26B1.34B
Total Liabilities4.52B3.16B3.13B3.14B2.71B
Stockholders Equity5.16B4.94B4.40B2.46B2.15B
Cash Flow
Free Cash Flow-171.52M446.62M239.31M745.57M-17.31M
Operating Cash Flow496.94M943.36M622.11M1.05B482.55M
Investing Cash Flow-1.24B-739.93M-359.57M-463.05M-542.87M
Financing Cash Flow505.10M-319.04M1.24B-80.74M63.27M

Kairikiya Co.,Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1663.00

Price Trends

50DMA1679.92Negative
100DMA1645.45Positive
200DMA1589.65Positive

Market Momentum

MACD-7.33Positive
RSI43.17Neutral
STOCH24.09Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5891, the sentiment is Negative. The current price of 1663.00 is below the 20-day moving average (MA) of 1678.55, below the 50-day MA of 1679.92, and above the 200-day MA of 1589.65, indicating a neutral trend. The MACD of -7.33 indicates Positive momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 24.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5891.

Kairikiya Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5891 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7630JP:763071OutperformJPY 168.71B74.23―1.51%8.36%-24.27%
JP:3069JP:306961NeutralJPY 7.53B7.51――1.49%510.16%
JP:3082JP:308256NeutralJPY 10.80B49.95―0.76%11.12%-28.09%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2695JP:269553NeutralJPY 137.27B63.11―0.87%4.28%-3.16%
JP:5891JP:589150NeutralJPY 9.38B-62.14―1.39%51.13%-127.84%
JP:3053JP:305349NeutralJPY 12.78B75.94――9.99%―

* General Sector Average

Performance Comparison

-20%-10%0%10%20%JP:5891JP:2695JP:3053JP:3069JP:3082JP:7630Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5891 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5891Kairikiya Co.,Ltd.1656.0043.412.69%
JP:2695Kura Sushi, Inc.1727.00121.627.58%
JP:3053Pepper Food Service Co., Ltd.208.0028.0015.56%
JP:3069JFLA Holdings, Inc.156.008.005.41%
JP:3082KICHIRI HOLDINGS & Co., Ltd.985.0069.297.57%
JP:7630Ichibanya Co., Ltd.1057.00168.4618.96%
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 21, 2026