Kourakuen Holdings Corporation (7554) AI Stock Analysis

• Market Cap: ¥20.54B
• Dividend Yield: N/A
• Average Volume (3M): 52.05K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 510
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 7.06
• Shares Outstanding: 20,832,441
• 10 Day Avg. Volume: 61,060
• 30 Day Avg. Volume: 52,050
• PEG Ratio: 0.03
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 9.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,155.00
• Price Target Upside: 7.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,155.00 ▲(7.44% Upside)

Kourakuen Holdings' overall stock score reflects its financial recovery and positive technical indicators. The company's improved profitability and cash flow management are significant strengths, while the fair valuation and lack of dividend yield are secondary considerations.

Kourakuen Holdings Corporation Business Overview & Revenue Model

Company Description

Kourakuen Holdings Corporation operates a chain of restaurants under the Korakuen name in Japan. As of November 11, 2020, it operated 456 stores. The company was formerly known as Kourakuen Co., Ltd. and changed its name to Kourakuen Holdings Corporation in 2015. Kourakuen Holdings Corporation was founded in 1954 and is headquartered in Koriyama, Japan.

How the Company Makes Money

Kourakuen Holdings Corporation generates its revenue mainly through the operation of its chain of ramen restaurants. The primary revenue stream is the sale of ramen dishes and other menu items to customers dining in their establishments. Additionally, the company may earn income from take-out and delivery services, which cater to the growing demand for convenient food options. Kourakuen may also engage in partnerships with suppliers to ensure cost-effective sourcing of ingredients, contributing to the company's profitability. The company leverages its brand reputation and extensive network of locations to attract a steady flow of customers, ensuring consistent revenue generation.

Kourakuen Holdings Corporation Financial Statement Overview

Summary

Kourakuen Holdings is showing signs of recovery with improvements in profitability and cash flow management. Despite a revenue decline, the company has turned its net income positive and reduced leverage. Continued focus on revenue maintenance and operational efficiencies is crucial.

Income Statement

Kourakuen Holdings has shown improvements in profitability with a rising net profit margin from a negative position in previous years to a positive 4.24% in the latest annual report. Despite a decline in total revenue from 2024 to 2025, the company managed to improve its EBIT margin to 13.66%, indicating better cost control. However, the revenue growth remains a concern, with a significant drop of approximately 29.7% from 2024 to 2025.

Balance Sheet

The balance sheet reflects a moderate financial structure with a debt-to-equity ratio of 0.30, showing a decrease in leverage compared to previous years. The equity ratio of 47.94% indicates substantial equity backing. However, the return on equity is relatively low at 13.34%, limiting shareholder value creation. The improvement in equity position is a positive sign of strengthening financial health.

Cash Flow

The cash flow statements indicate a robust free cash flow growth rate of 153.78% from 2024 to 2025, coupled with a healthy operating cash flow to net income ratio of 2.49. The company has improved its cash flow from operations, which supports its operational stability. However, the historical volatility in free cash flow raises concerns about the sustainability of these improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.04B	18.84B	8.87B	25.46B	25.02B	26.57B
Gross Profit	9.85B	10.11B	18.96B	18.41B	17.98B	18.91B
EBITDA	902.96M	1.69B	1.09B	-822.82M	2.67B	-127.43M
Net Income	527.89M	799.62M	94.26M	-2.86B	374.01M	-841.68M
Balance Sheet
Total Assets	11.15B	12.49B	10.47B	10.80B	14.14B	17.20B
Cash, Cash Equivalents and Short-Term Investments	3.53B	4.72B	1.09B	1.29B	1.18B	2.91B
Total Debt	223.38M	1.79B	4.30B	5.65B	5.88B	6.32B
Total Liabilities	5.01B	6.50B	8.76B	9.93B	10.54B	14.03B
Stockholders Equity	6.14B	5.99B	1.70B	865.28M	3.61B	3.16B
Cash Flow
Free Cash Flow	0.00	1.75B	689.08M	-412.80M	-1.28B	83.53M
Operating Cash Flow	0.00	1.99B	1.10B	282.83M	-203.45M	797.10M
Investing Cash Flow	0.00	33.39M	417.44M	27.58M	-1.01B	-550.66M
Financing Cash Flow	0.00	923.70M	-675.31M	-205.21M	-510.25M	1.02B

Kourakuen Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1075.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7554, the sentiment is Neutral. The current price of 1075 is below the 20-day moving average (MA) of 1076.95, above the 50-day MA of 1058.70, and above the 200-day MA of 1054.64, indicating a neutral trend. The MACD of 10.53 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7554.

Kourakuen Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3329	75 Outperform	¥17.21B	23.54	10.05%	0.94%	3.41%	7.67%
7554	67 Neutral	¥20.54B	19.64	―	―	―	―
3075	66 Neutral	¥21.52B	30.96	8.70%	0.75%	5.86%	-23.12%
7621	60 Neutral	¥19.85B	3,622.39	2.87%	0.42%	1.95%	-99.25%
7562	59 Neutral	¥16.91B	47.98	7.94%	0.41%	0.18%	-63.97%
2694	45 Neutral	¥16.67B	-23.70	-9.09%	0.70%	3.35%	-512.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Kourakuen Holdings Corporation Corporate Events

Kourakuen Holdings Reports Strong August Sales Growth

Kourakuen Holdings Corporation reported its preliminary sales trends for August 2025, showing a positive year-on-year growth in sales and customer numbers for its directly managed stores. The sales for existing stores increased by 112.4% compared to the previous year, with a notable rise in the number of customers by 110.6%. This growth indicates a strong market position and suggests a successful strategy in attracting more customers, which could positively impact the company’s financial performance and stakeholder confidence.

The most recent analyst rating on (JP:7554) stock is a Hold with a Yen1093.00 price target. To see the full list of analyst forecasts on Kourakuen Holdings Corporation stock, see the JP:7554 Stock Forecast page.

Kourakuen Holdings Reports Positive July Sales Growth

Kourakuen Holdings Corporation reported preliminary sales trends for July 2025, indicating a year-on-year sales increase of 110.3% for its directly managed existing stores. The number of customers rose by 107.9%, while average customer spending increased by 102.2%. These figures suggest a positive growth trajectory for the company, reflecting strong consumer demand and effective operational strategies. The company’s performance in July contributes to an overall positive trend for the first half of the fiscal year ending March 2026, which could enhance its market position and stakeholder confidence.

Kourakuen Announces Executive Management Changes

Kourakuen Holdings Corporation has announced a series of personnel changes in its executive management team, effective August 7, 2025. These changes, resolved at a recent Board of Directors meeting, are expected to impact the company’s administrative and sales divisions, potentially influencing its strategic direction and operational efficiency.

Kourakuen Corporation Reports Q1 2025 Financial Results and Positive Outlook

Kourakuen Corporation reported its non-consolidated financial results for the three months ending June 30, 2025, with net sales of 6,909 million yen and a net income of 134 million yen. The company forecasts significant growth in net sales and operating profits for the fiscal year ending March 31, 2026, indicating a positive outlook for stakeholders.

Kourakuen Corporation Reports June 2025 Sales Trends

Kourakuen Corporation reported preliminary sales trends for June 2025, indicating a year-on-year increase in sales and customer numbers for its directly managed stores. However, the average customer spending showed a slight decrease compared to the previous year. The company has slightly reduced the number of stores compared to the previous fiscal year, which may impact its market presence.

Kourakuen Holdings Announces New Board Members

Kourakuen Holdings Corporation has announced a new management structure following its 55th Annual General Meeting of Shareholders. The reappointments and promotions within the board are expected to strengthen the company’s leadership, potentially impacting its strategic direction and operational efficiency.