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Kannanmaru Corporation (7585) AI Stock Analysis

JP:7585

Kannanmaru Corporation

(TSE/TYO:7585)

Select Model
Rating:48Neutral
Price Target:JPY 403.00▼(-0.74% Downside)
Action:reiterated
Date:08/17/26

The overall score of 48 reflects Kannanmaru's precarious financial condition, characterized by persistent losses, high leverage, and negative cash flows. The slightly bearish technical picture and poor valuation further weigh on the stock. While there are signs of gradual improvement in operating losses and cash burn, the balance sheet remains a major concern. Investors should monitor the company's ability to achieve profitability and reduce debt.

Positive Factors
Multi-year Revenue GrowthThe 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 LossesRecurring 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.

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

-5%0%5%10%15%20%25%JP:7585-2.63%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 1.55B
Dividend Yield
―
Average Volume (3M)
9,278
Price to Earnings (P/E)
-8.2
Beta (1Y)
0.13
Revenue Growth
0.57%
EPS Growth
13.43%
Country
Japan
Employees
104
Sector
General
Sector Strength
55
Industry
Restaurants

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 VAN...

How the Company Makes Money

null

Kannanmaru Corporation Financial Statement Overview

Summary

Persistent operating and net losses, though narrowing, and a severely weakened balance sheet with high debt-to-equity (3.5) and eroding equity. Cash flows remain negative but improving. Overall financial health is weak, posing significant risk.

Income Statement

35Negative

Balance Sheet

15Very Negative

Cash Flow

25Negative
Financial statement breakdown
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 Flow0-122.57M-167.55M-358.50M-292.75M28.36M
Operating Cash Flow0-77.89M-53.14M-88.88M-223.14M116.56M
Investing Cash Flow0-52.31M-104.03M-316.16M172.81M-69.23M
Financing Cash Flow079.46M-43.74M264.10M94.38M44.53M

Kannanmaru Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price406.00

Price Trends

50DMA407.20Negative
100DMA408.63Negative
200DMA410.50Negative

Market Momentum

MACD0.06Positive
RSI48.54Neutral
STOCH5.60Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7585, the sentiment is Negative. The current price of 406.00 is below the 20-day moving average (MA) of 407.50, below the 50-day MA of 407.20, and below the 200-day MA of 410.50, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 5.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7585.

Kannanmaru Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7585 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3077JP:307768NeutralJPY 8.18B14.99――――
JP:138AJP:138A58NeutralJPY 3.11B25.02―1.27%11.80%-3.06%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:3358JP:335849NeutralJPY 3.13B40.38―1.19%49.12%274.67%
JP:7585JP:758548NeutralJPY 1.55B-8.20――0.57%13.43%
JP:3067JP:306746NeutralJPY 4.02B58.90――-1.19%―
JP:3224JP:322444NeutralJPY 3.49B-26.76―1.53%19.74%-140.62%

* General Sector Average

Performance Comparison

0%100%200%300%JP:7585JP:138AJP:3067JP:3077JP:3224JP:3358Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7585 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7585Kannanmaru Corporation407.00-11.00-2.63%
JP:138AHikari Food Service Co. Ltd.3140.00227.097.80%
JP:3067Tokyo Ichiban Foods Co., Ltd.450.00-4.00-0.88%
JP:3077Horiifoodservice Co., Ltd.1180.00823.00230.53%
JP:3224General Oyster, Inc.654.0091.2816.22%
JP:3358Y.S. FOOD CO., LTD.84.00-4.06-4.61%
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