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Kabuki-Za Co., Ltd. (9661) AI Stock Analysis

JP:9661

Kabuki-Za Co., Ltd.

(TSE/TYO:9661)

Select Model
Rating:78Outperform
Price Target:JPY 5,096.00▲(26.29% Upside)
Action:upgraded
Date:08/06/26

The stock’s score is driven primarily by its very strong financial foundation: a debt-free balance sheet, improving profitability, and increasingly reliable cash generation position Kabuki-Za as a financially resilient player in real estate services.[0] Technical indicators show a stable, neutral trend without strong momentum either way, supporting a moderate, rather than high, technical score.[0] The main drag on the overall rating is valuation, as the extremely high P/E ratio suggests the shares are priced richly despite the benefit of an unusually high dividend yield.[0] Taken together, the stock offers robust underlying strength and income but with valuation and limited near-term technical upside tempering the overall attractiveness.

Positive Factors
Debt-free balance sheetZero debt materially reduces financial risk and gives management flexibility to fund capital needs, operations, or distributions without relying on external borrowing. A debt-free structure supports resilience through demand cycles and enables strategic investments over the next several months to years.
Negative Factors
Low return on equityROE near 2.4% despite a sizable equity base (~¥11–12.5B) signals limited capital efficiency. Low returns on equity mean shareholder value growth relies on margin expansion or better capital deployment, which can be slow and uncertain absent structural business improvements.

Kabuki-Za Co., Ltd. (9661) vs. iShares MSCI Japan ETF (EWJ)

-15%-10%-5%0%5%10%15%20%25%JP:9661-11.30%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 49.02B
Dividend Yield
0.12%
Average Volume (3M)
7,353
Price to Earnings (P/E)
192.3
Beta (1Y)
0.05
Revenue Growth
9.69%
EPS Growth
-26.58%
Country
Japan
Employees
38
Sector
General
Sector Strength
55
Industry
Real Estate - Services

Kabuki-Za Co., Ltd. Business Overview & Revenue Model

Company Description

Kabuki-Za Co., Ltd. primarily focuses on the rental of properties. The firm also oversees and operates a variety of establishments, including dining facilities, performance theaters, and retail outlets. This company, which has its corporate base in T...

How the Company Makes Money

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Kabuki-Za Co., Ltd. Financial Statement Overview

Summary

Kabuki-Za’s financials are very strong, with a debt-free balance sheet, steady asset base around 24B, and solid equity near 11B supporting low financial risk and improving ROE.[0] Revenue has grown from 2.1B in 2021 to 3.6B in FY2026, margins have improved to ~25% gross and ~8% net, and net income has been consistently positive since 2024, indicating a convincing turnaround and sustained profitability.[0] Operating cash flow has turned robust at 706M in FY2026 and free cash flow closely tracks net income, showing high-quality earnings, though cash conversion ratios below 40% keep the score just short of the maximum.[0]

Income Statement

82Very Positive

Balance Sheet

95Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue3.68B3.63B3.11B3.05B2.70B2.47B
Gross Profit893.92M913.34M742.42M770.19M526.86M428.28M
EBITDA779.24M813.13M681.08M643.00M429.00M341.00M
Net Income254.88M284.54M274.57M255.96M-78.40M-153.19M
Balance Sheet
Total Assets23.99B24.33B24.35B23.79B24.26B25.05B
Cash, Cash Equivalents and Short-Term Investments2.74B2.57B2.03B1.92B1.51B1.41B
Total Debt000000
Total Liabilities12.68B12.96B13.06B13.25B13.63B13.97B
Stockholders Equity11.30B11.37B11.29B10.54B10.62B11.08B
Cash Flow
Free Cash Flow0611.75M183.72M295.18M128.69M64.85M
Operating Cash Flow0705.87M215.96M308.32M159.68M100.69M
Investing Cash Flow0-106.97M-40.20M163.39M-4.85M17.33M
Financing Cash Flow0-63.12M-59.70M-60.29M-60.28M24.46M

Kabuki-Za Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:9661 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9661JP:966178OutperformJPY 49.03B192.34―0.12%9.69%-26.58%
JP:8818JP:881868NeutralJPY 88.34B11.05―2.70%1.72%65.38%
JP:3252JP:325260NeutralJPY 57.05B8.18―4.73%36.85%83.36%
JP:3479JP:347959NeutralJPY 82.19B5.67――50.70%364.91%
JP:8841JP:884159NeutralJPY 87.88B29.592.71%1.12%15.48%60.86%
JP:4487JP:448758NeutralJPY 2.54B13.52――28.76%-20.95%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-20%0%20%40%JP:9661JP:8841JP:3252JP:3479JP:4487JP:8818Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:9661 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9661Kabuki-Za Co., Ltd.4045.00-520.07-11.39%
JP:8841TOC Co., Ltd.939.00133.2816.54%
JP:3252JINUSHI Co.,Ltd.2645.00-134.86-4.85%
JP:3479TKP Corp1947.00221.0012.80%
JP:4487Space Market, Inc.210.00-112.00-34.78%
JP:8818Keihanshin Building Co., Ltd.926.0080.319.50%
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 04, 2026