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ASAKUMA CO.,LTD. (7678) AI Stock Analysis

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JP:7678

ASAKUMA CO.,LTD.

(TSE/TYO:7678)

Select Model
Rating:74Outperform
Price Target:JPY 4,424.00â–²(7.12% Upside)
Action:upgraded
Date:10/28/26

The score is driven primarily by improved financial strength (notably the deleveraged balance sheet) and solid technical uptrend/momentum. This is meaningfully offset by weak valuation (very high P/E) and ongoing concerns about earnings and cash-flow consistency despite the revenue rebound.

Positive Factors
Revenue recoveryThe acceleration in revenue growth indicates a meaningful recovery in demand and business activity after weaker prior periods. If sustained, stronger sales can improve operating leverage, support reinvestment, and reinforce the company’s ability to build a larger restaurant revenue base.
Negative Factors
Earnings decline despite growthThe decline in net income while revenue increased suggests that growth is not translating consistently into bottom-line results. This weakens earnings quality and indicates that higher sales alone may not produce durable profit improvement unless the company improves cost control and operating execution.

ASAKUMA CO.,LTD. (7678) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%100%JP:7678+90.98%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 43.35B
Dividend Yield
―
Average Volume (3M)
12.32K
Price to Earnings (P/E)
150.1
Beta (1Y)
0.40
Revenue Growth
29.74%
EPS Growth
-13.59%
Country
Japan
Employees
156
Sector
General
Sector Strength
55
Industry
Restaurants

ASAKUMA CO.,LTD. Business Overview & Revenue Model

Company Description

Asakuma Co.,Ltd, alongside its affiliate Asakuma Succession Co., Ltd., is actively involved in the restaurant management and franchising industry across Japan. The company oversees a diverse range of culinary establishments, featuring steak restauran...

ASAKUMA CO.,LTD. Financial Statement Overview

Summary

Strong recovery profile with accelerating revenue growth and a markedly stronger balance sheet (debt reduced to zero in 2026). Offsetting this, profitability and cash-flow quality are inconsistent: margins appear volatile, net income fell in 2026 despite higher sales, and free cash flow was highly uneven (notably the sharp 2025 dip) even though 2026 improved.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

76Positive
Financial statement breakdown
BreakdownTTMJan 2026Jan 2025Dec 2023Mar 2023Mar 2022
Income Statement
Total Revenue8.30B10.05B8.35B7.32B6.20B5.25B
Gross Profit4.62B5.51B4.51B4.24B3.68B3.07B
EBITDA271.95M636.07M221.32M257.00M88.87M348.88M
Net Income375.10M325.15M567.97M156.58M-12.18M60.12M
Balance Sheet
Total Assets4.04B4.95B4.36B3.76B3.31B3.88B
Cash, Cash Equivalents and Short-Term Investments1.94B2.44B2.06B2.05B1.73B2.00B
Total Debt84.00M080.35M94.94M105.20M507.83M
Total Liabilities1.18B1.56B1.29B1.25B934.73M1.46B
Stockholders Equity2.86B3.40B3.07B2.50B2.37B2.41B
Cash Flow
Free Cash Flow0532.25M34.59M340.77M159.04M518.77M
Operating Cash Flow0877.76M314.91M484.52M307.16M609.13M
Investing Cash Flow0-417.65M-288.00M-156.87M-140.87M-102.37M
Financing Cash Flow0-80.73M2.92M-10.26M-430.54M-321.32M

ASAKUMA CO.,LTD. Technical Analysis

Technical Analysis SentimentPositive
Last Price4130.00

Price Trends

50DMA3536.00Positive
100DMA3342.88Positive
200DMA2991.88Positive

Market Momentum

MACD124.02Negative
RSI73.02Negative
STOCH86.47Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7678, the sentiment is Positive. The current price of 4130.00 is above the 20-day moving average (MA) of 3754.00, above the 50-day MA of 3536.00, and above the 200-day MA of 2991.88, indicating a bullish trend. The MACD of 124.02 indicates Negative momentum. The RSI at 73.02 is Negative, neither overbought nor oversold. The STOCH value of 86.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7678.

ASAKUMA CO.,LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7678 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7678JP:767874OutperformJPY 44.27B150.07――29.74%-13.59%
JP:7554JP:755469NeutralJPY 22.85B19.11―1.46%42.20%―
JP:3068JP:306862NeutralJPY 19.85B48.72―0.54%10.61%156.20%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:3178JP:317855NeutralJPY 21.84B42.96―0.62%1.96%-40.14%
JP:9850JP:985051NeutralJPY 21.07B532.37―0.76%1.71%-91.47%
JP:2882JP:288244NeutralJPY 22.81B43.73―0.75%3.77%75.23%

* General Sector Average

Performance Comparison

0%25%50%75%JP:7678JP:2882JP:3068JP:3178JP:7554JP:9850Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7678 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7678ASAKUMA CO.,LTD.4130.001970.0091.20%
JP:2882EAT&HOLDINGS Co., Ltd.2005.0059.323.05%
JP:3068WDI Corporation3135.00141.454.73%
JP:3178CHIMNEY CO LTD1132.00-37.40-3.20%
JP:7554Kourakuen Holdings Corporation1196.00180.0417.72%
JP:9850GOURMET KINEYA CO., LTD.921.00-18.33-1.95%
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: Oct 28, 2026