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Tokyo Kaikan Co., Ltd.
(9701)
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Rating:69Neutral
Price Target:
¥4,654.00
▲(18.27% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by improving financial performance, highlighted by strong and higher free cash flow and restored profitability, with leverage trending better. Offsetting factors are remaining balance-sheet debt and some margin volatility. Technical signals are mixed (positive momentum indicators but longer-term averages overhead), while valuation looks reasonable with a modest dividend yield.
Positive Factors
Strong free cash flow generation
Tokyo Kaikan's free cash flow surge to roughly ¥2.3B in 2026, amounting to about 94% of net income and up ~51% YoY, signals high earnings quality. Durable FCF supports reinvestment in venues, steady dividends or buybacks, and accelerated debt reduction, strengthening options over the next several quarters.
Negative Factors
Elevated absolute debt level
Despite improving leverage ratios, an absolute debt stock near ¥11.8B is material for a hospitality-focused operator. High nominal debt can constrain investment choices, increase interest expense sensitivity, and limit headroom to absorb revenue shocks, reducing strategic flexibility in weaker demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Tokyo Kaikan's free cash flow surge to roughly ¥2.3B in 2026, amounting to about 94% of net income and up ~51% YoY, signals high earnings quality. Durable FCF supports reinvestment in venues, steady dividends or buybacks, and accelerated debt reduction, strengthening options over the next several quarters.
Read all positive factors
Tokyo Kaikan Co., Ltd. (9701) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥14.20B
Dividend Yield1.06%
Average Volume (3M)796.00
Price to Earnings (P/E)13.9
Beta (1Y)0.11
Revenue Growth5.09%
EPS Growth15.59%
CountryJP
Employees451
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)94.95
Shares Outstanding3,463,943
10 Day Avg. Volume800
30 Day Avg. Volume796
Financial Highlights & Ratios
PEG Ratio1.37
Price to Book (P/B)1.22
Price to Sales (P/S)0.99
P/FCF Ratio6.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tokyo Kaikan Co., Ltd. Business Overview & Revenue Model
Company Description
Tokyo Kaikan Co., Ltd. is a Japanese enterprise operating across various hospitality and culinary sectors. Its primary activities involve managing a diverse portfolio of restaurants and bars, alongside providing dedicated venues for weddings, banq...
How the Company Makes Money
Tokyo Kaikan generates revenue mainly by providing food-and-beverage and hospitality services tied to (1) banquets and corporate events, (2) weddings and ceremonial functions, and (3) restaurant operations. Its earnings are driven by charging cust...
Tokyo Kaikan Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.26B | 15.27B | 14.88B | 12.89B | 8.40B |
| Gross Profit | 2.41B | 2.18B | 1.92B | 1.01B | -945.74M |
| EBITDA | 2.29B | 2.12B | 1.90B | 1.07B | -900.36M |
| Net Income | 989.53M | 889.49M | 1.54B | 249.54M | 844.66M |
Balance Sheet | |||||
| Total Assets | 30.17B | 28.54B | 26.43B | 25.22B | 24.94B |
| Cash, Cash Equivalents and Short-Term Investments | 8.36B | 6.71B | 6.01B | 4.72B | 4.44B |
| Total Debt | 11.83B | 12.40B | 12.96B | 13.43B | 13.89B |
| Total Liabilities | 17.04B | 17.58B | 16.83B | 17.69B | 17.82B |
| Stockholders Equity | 13.13B | 10.96B | 9.60B | 7.53B | 7.12B |
Cash Flow | |||||
| Free Cash Flow | 2.30B | 1.52B | 1.79B | 1.03B | -2.14B |
| Operating Cash Flow | 2.44B | 1.57B | 1.94B | 1.07B | -2.01B |
| Investing Cash Flow | 354.46M | -1.88B | -624.79M | -333.60M | 1.81B |
| Financing Cash Flow | -646.65M | -796.42M | -517.37M | -465.25M | 2.24B |
Tokyo Kaikan Co., Ltd. Technical Analysis
Neutral
3935.00
Price Trends
4219.90
Positive
4239.45
Positive
4291.85
Negative
Market Momentum
10.78
Positive
50.68
Neutral
25.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9701, the sentiment is Neutral. The current price of 3935 is below the 20-day moving average (MA) of 4250.75, below the 50-day MA of 4219.90, and below the 200-day MA of 4291.85, indicating a neutral trend. The MACD of 10.78 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9701.
Tokyo Kaikan Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥14.20B | 13.89 | ― | 0.73% | 5.09% | 15.59% | |
64 Neutral | ¥33.31B | 15.50 | ― | 1.35% | 13.45% | 39.79% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ¥19.60B | 74.07 | ― | 0.45% | -4.99% | 4626.27% | |
56 Neutral | ¥10.71B | 49.54 | ― | 0.78% | 11.12% | -28.09% | |
54 Neutral | ¥11.07B | 58.52 | ― | ― | 2.36% | -88.47% | |
50 Neutral | ¥19.34B | 47.47 | ― | 0.54% | 10.61% | 156.20% |
* Consumer Cyclical Sector Average
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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.