UKAI CO.,LTD. (7621) AI Stock Analysis

UKAI CO.,LTD.

(TSE/TYO:7621)

Select Model

Rating:67Neutral

Price Target:JPY 3,722.00▲(18.35% Upside)

Action:reiterated

Date:08/21/26

Strong financials from balance sheet health and revenue recovery are the main positives, supported by favorable technical indicators, while high valuation weighs on the score.

Positive Factors

Balance-sheet deleveragingMeaningful deleveraging has reduced financial risk and improved borrowing capacity. A stronger equity base and lower leverage should provide greater resilience and flexibility if operating conditions remain uneven.

Negative Factors

Weak revenue growthLimited or negative revenue growth suggests constrained customer demand or store-level expansion. Without stronger top-line momentum, fixed costs are harder to leverage and sustained earnings improvement becomes more difficult.

UKAI CO.,LTD. (7621) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 17.89B
Dividend Yield: 0.47%
Average Volume (3M): 2,715
Price to Earnings (P/E): 67.7
Beta (1Y): 0.16
Revenue Growth: -4.99%
EPS Growth: 4626.27%
Country: Japan
Employees: 523
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Restaurants

UKAI CO.,LTD. Business Overview & Revenue Model

Company Description

Ukai Co., Ltd., established in 1964 and headquartered in Hachioji, Japan, operates across the hospitality and cultural sectors within the country. The company's business is organized into three primary divisions: Restaurants, Product Sales, and Cultu...

How the Company Makes Money

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UKAI CO.,LTD. Financial Statement Overview

Summary

Resilient revenue growth and strengthened balance sheet through debt reduction, though recent volatility in net income and free cash flow introduce some risks.

Income Statement

68Positive

Balance Sheet

82Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	13.57B	13.46B	13.33B	12.65B	9.82B
Gross Profit	7.26B	7.33B	7.15B	6.69B	4.43B
EBITDA	1.52B	1.14B	1.30B	1.19B	-582.93M
Net Income	295.50M	136.92M	870.08M	918.25M	-869.30M
Balance Sheet
Total Assets	10.47B	11.00B	10.76B	11.26B	10.98B
Cash, Cash Equivalents and Short-Term Investments	4.38B	5.41B	1.82B	2.29B	1.87B
Total Debt	2.10B	2.49B	2.97B	4.28B	5.18B
Total Liabilities	5.46B	6.23B	6.06B	7.36B	8.00B
Stockholders Equity	5.02B	4.77B	4.70B	3.90B	2.98B
Cash Flow
Free Cash Flow	-316.94M	1.09B	974.34M	1.34B	98.69M
Operating Cash Flow	617.13M	1.24B	1.17B	1.47B	159.47M
Investing Cash Flow	-2.28B	2.90B	-239.51M	-127.79M	-109.61M
Financing Cash Flow	-669.77M	-540.64M	-1.41B	-921.25M	1.40B

UKAI CO.,LTD. Technical Analysis

Technical Analysis SentimentNegative

Last Price3145.00

Price Trends

50DMA3339.60Negative

100DMA3347.80Negative

200DMA3340.90Negative

Market Momentum

MACD-48.89Negative

RSI34.84Neutral

STOCH29.70Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7621, the sentiment is Negative. The current price of 3145.00 is below the 20-day moving average (MA) of 3200.50, below the 50-day MA of 3339.60, and below the 200-day MA of 3340.90, indicating a bearish trend. The MACD of -48.89 indicates Negative momentum. The RSI at 34.84 is Neutral, neither overbought nor oversold. The STOCH value of 29.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7621.

UKAI CO.,LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7621 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9701	68Neutral	JPY 15.87B	14.47	―	0.95%	5.94%	21.38%
JP:7621	67Neutral	JPY 17.91B	67.69	―	0.47%	-4.99%	4626.27%
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:7616	55Neutral	JPY 237.44B	117.52	―	0.22%	16.41%	267.75%
JP:7604	53Neutral	JPY 7.83B	24.42	―	1.13%	0.76%	―
JP:2764	43Neutral	JPY 11.14B	58.89	―	―	2.36%	-88.47%

* Consumer Cyclical Sector Average

Performance Comparison

JP:7621 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7621	UKAI CO.,LTD.	3185.00	-344.08	-9.75%
JP:2764	Hiramatsu Inc.	159.00	49.00	44.55%
JP:3082	KICHIRI HOLDINGS & Co., Ltd.	985.00	71.27	7.80%
JP:7604	Umenohana Co., Ltd.	886.00	81.81	10.17%
JP:7616	Colowide Co., Ltd.	2234.00	566.76	33.99%
JP:9701	Tokyo Kaikan Co., Ltd.	4750.00	833.73	21.29%

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

UKAI CO.,LTD. AI Stock Analysis