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Kannanmaru Corporation (JP:7585)
:7585
Japanese Market
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Kannanmaru Corporation (7585) AI Stock Analysis

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JP:7585

Kannanmaru Corporation

(7585)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
¥397.00
▼(-4.57% Downside)
Action:Reiterated
Date:08/17/26
The score is held down primarily by weak financial performance: persistent operating losses, negative operating/free cash flow, and sharply higher leverage with declining equity. Technicals are broadly neutral and do not provide a strong offset. Valuation also remains pressured because the negative P/E reflects ongoing losses and there is no dividend yield data to add support.
Positive Factors
Multi-year Revenue Growth
The multi-year revenue increase indicates the restaurant platform has achieved some expansion and customer demand. Although recent growth has stalled, the established revenue base provides a foundation for recovery if execution improves.
Negative Factors
Persistent Operating Losses
Recurring operating and net losses indicate that the business model is not currently converting its revenue and gross profit into sustainable earnings. Continued losses constrain reinvestment capacity and make a durable turnaround dependent on execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year Revenue Growth
The multi-year revenue increase indicates the restaurant platform has achieved some expansion and customer demand. Although recent growth has stalled, the established revenue base provides a foundation for recovery if execution improves.
Read all positive factors

Kannanmaru Corporation (7585) vs. iShares MSCI Japan ETF (EWJ)

Kannanmaru Corporation Business Overview & Revenue Model

Company Description
Kan-Nanmaru Corporation operates as a franchisee within Japan's food and beverage industry. The company manages a diverse portfolio of restaurants and bars under various brand names, including Shoya, Nihon kaishoya, sing village, Jinbee Taro, and ...
How the Company Makes Money
null...

Kannanmaru Corporation Financial Statement Overview

Summary
Financial performance is weak overall. Revenue growth has been meaningful over 2022–2024 but was roughly flat in the latest year (~0.6%). Despite strong and consistent gross margins (mid-to-high 60% range), the company remains unprofitable with negative EBIT/EBITDA across the last four years and a net margin around -10% in 2026. Balance-sheet risk has increased materially as leverage rose (debt-to-equity ~3.49 in 2026 vs. ~0.61 in 2023) alongside deteriorating ROE (~-0.80). Cash generation is also a major concern, with negative operating cash flow in recent years (including 2026) and negative free cash flow across 2023–2026.
Income Statement
28
Negative
Balance Sheet
22
Negative
Cash Flow
19
Very Negative
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue665.21M1.88B1.87B1.65B1.34B596.16M
Gross Profit396.25M1.24B1.23B1.08B855.87M351.78M
EBITDA-537.44M-41.77M-65.94M-118.90M-292.93M-505.26M
Net Income-8.77M-189.19M-218.52M-206.63M-295.51M-10.25M
Balance Sheet
Total Assets1.77B1.37B1.54B1.78B1.68B1.77B
Cash, Cash Equivalents and Short-Term Investments949.36M466.10M516.63M717.54M808.48M949.36M
Total Debt375.58M827.88M745.25M787.97M523.80M375.58M
Total Liabilities601.43M1.13B1.11B1.13B826.76M601.43M
Stockholders Equity1.17B237.39M426.21M649.87M854.79M1.17B
Cash Flow
Free Cash Flow0.00-122.57M-167.55M-358.50M-292.75M28.36M
Operating Cash Flow0.00-77.89M-53.14M-88.88M-223.14M116.56M
Investing Cash Flow0.00-52.31M-104.03M-316.16M172.81M-69.23M
Financing Cash Flow0.0079.46M-43.74M264.10M94.38M44.53M

Kannanmaru Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price416.00
Price Trends
50DMA
408.18
Negative
100DMA
411.55
Negative
200DMA
413.81
Negative
Market Momentum
MACD
-0.19
Negative
RSI
51.74
Neutral
STOCH
80.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7585, the sentiment is Positive. The current price of 416 is above the 20-day moving average (MA) of 407.25, above the 50-day MA of 408.18, and above the 200-day MA of 413.81, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7585.

Kannanmaru Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
¥3.10B20.381.35%12.69%34.77%
57
Neutral
¥8.82B23.38
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
48
Neutral
¥3.65B45.6749.12%274.67%
46
Neutral
¥4.18B60.99-1.19%
45
Neutral
¥1.56B-8.220.57%13.43%
44
Neutral
¥3.71B-28.441.24%19.74%-140.62%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7585
Kannanmaru Corporation
408.00
-1.00
-0.24%
JP:138A
Hikari Food Service Co. Ltd.
3,105.00
737.22
31.14%
JP:3067
Tokyo Ichiban Foods Co., Ltd.
464.00
-7.00
-1.49%
JP:3077
Horiifoodservice Co., Ltd.
1,250.00
835.00
201.20%
JP:3224
General Oyster, Inc.
696.00
9.88
1.44%
JP:3358
Y.S. FOOD CO., LTD.
96.00
-4.00
-4.00%
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