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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:68Neutral
Price Target:JPY 4,485.00â–²(3.82% Upside)
Action:downgraded
Date:11/07/26

The score is driven primarily by solid financial positioning (notably the debt-free balance sheet) and strong recent revenue growth, tempered by inconsistent profitability/cash conversion. Technicals support an uptrend but appear overextended, while the very high P/E meaningfully drags the overall score.

Positive Factors
Accelerating Revenue GrowthRevenue growth accelerating to 33.2% indicates a strong recovery in demand and improving business momentum. If sustained, this expansion can support greater operating scale, strengthen the company’s market position, and provide a broader base for future earnings improvement.
Negative Factors
Thin Operating MarginsVery thin operating and EBITDA margins leave limited protection if revenue growth moderates or expenses rise. Even with healthy gross margin, the small operating profit buffer can make earnings vulnerable and may constrain the company’s ability to convert sales growth into durable shareholder returns.

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

-20%0%20%40%60%80%100%JP:7678+93.07%EWJ+15.69%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 46.24B
Dividend Yield
―
Average Volume (3M)
12.81K
Price to Earnings (P/E)
157.0
Beta (1Y)
0.39
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 and improving fundamentals: revenue growth accelerated to 33.2% in 2026 and the balance sheet is conservatively positioned with debt reduced to zero. Offsetting this strength, profitability and cash-flow consistency are uneven (thin operating/EBITDA margins in 2025, net income down in 2026 despite higher sales, and volatile free cash flow with a sharp dip in 2025).

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 Price4320.00

Price Trends

50DMA3720.20Positive
100DMA3433.73Positive
200DMA3065.89Positive

Market Momentum

MACD181.92Negative
RSI63.58Neutral
STOCH61.62Neutral

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 4320.00 is above the 20-day moving average (MA) of 4008.75, above the 50-day MA of 3720.20, and above the 200-day MA of 3065.89, indicating a bullish trend. The MACD of 181.92 indicates Negative momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 61.62 is Neutral, 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:7554JP:755469NeutralJPY 23.54B19.62―1.43%42.80%―
JP:7678JP:767868NeutralJPY 45.83B156.98――29.74%-13.59%
JP:3068JP:306862NeutralJPY 19.60B50.04―0.53%10.61%156.20%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:3178JP:317855NeutralJPY 21.90B43.26―0.61%2.58%-68.86%
JP:2882JP:288252NeutralJPY 22.80B43.97―0.74%3.77%75.23%
JP:9850JP:985051NeutralJPY 21.14B529.48―0.76%-0.92%-179.45%

* General Sector Average

Performance Comparison

0%25%50%75%100%JP:7678JP:2882JP:3068JP:3178JP:7554JP:9850Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7678 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7678ASAKUMA CO.,LTD.4320.002090.0093.72%
JP:2882EAT&HOLDINGS Co., Ltd.2016.0062.383.19%
JP:3068WDI Corporation3220.00237.397.96%
JP:3178CHIMNEY CO LTD1140.00-82.10-6.72%
JP:7554Kourakuen Holdings Corporation1228.00128.2811.66%
JP:9850GOURMET KINEYA CO., LTD.916.00-39.22-4.11%
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: Nov 06, 2026