Ohsho Food Service Corp. (9936) AI Stock Analysis

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Ohsho Food Service Corp.

(TSE/TYO:9936)

Select Model

Rating:66Neutral

Price Target:JPY 3,189.00▲(7.27% Upside)

Action:reiterated

Date:11/13/26

The overall score of 66 reflects a balance between a fortress-like balance sheet and prevailing operational headwinds. The company's exceptional debt-to-equity profile minimizes structural financial risks, and current price trends remain moderately bullish. However, premium valuation multiples combined with shrinking profit margins and declining free cash flow generation constrain the stock's near-term upside potential, demanding a turnaround in margin stability to warrant a higher rating.

Positive Factors

Very Low LeverageVery low leverage gives Ohsho substantial financial flexibility relative to restaurant operators with heavier debt burdens. A strong equity base can help the company fund store development, absorb operating volatility, and maintain strategic options without relying heavily on refinancing or interest-bearing capital.

Negative Factors

Margin CompressionMaterial declines in operating and net margins show that revenue growth is translating into less profit than in FY2022. Persistent pressure from the cost and price mix or higher operating expenses could limit earnings growth, reduce reinvestment capacity, and make profitability more sensitive to further cost increases.

Ohsho Food Service Corp. (9936) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 155.81B
Dividend Yield: 1.88%
Average Volume (3M): 280.48K
Price to Earnings (P/E): 26.8
Beta (1Y): 0.23
Revenue Growth: -0.10%
EPS Growth: -24.16%
Country: Japan
Employees: 2,501
Sector: General
Sector Strength: 55
Industry: Restaurants

Ohsho Food Service Corp. Business Overview & Revenue Model

Company Description

Headquartered in Kyoto, Japan, and established in 1967, Ohsho Food Service Corp. manages a chain of 734 Chinese restaurants across Japan. These establishments are operated and franchised under the Gyoza OHSHO brand.

Ohsho Food Service Corp. Financial Statement Overview

Summary

Financial performance demonstrates a highly stable but operationally challenged profile. The balance sheet is exceptional with near-zero leverage and a conservative debt-to-equity ratio of 0.038. However, this is partially offset by compressing net profit margins (falling to 5.0%) and declining operating cash flow over the trailing twelve months.

Income Statement

62Positive

Balance Sheet

92Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	115.54B	116.84B	111.03B	101.40B	93.02B	84.78B
Gross Profit	77.60B	76.31B	73.35B	67.59B	61.80B	56.39B
EBITDA	11.62B	13.89B	14.30B	13.58B	11.46B	15.63B
Net Income	5.84B	7.47B	8.07B	7.91B	6.21B	8.81B
Balance Sheet
Total Assets	87.79B	85.09B	99.05B	93.40B	85.34B	90.67B
Cash, Cash Equivalents and Short-Term Investments	26.87B	24.53B	38.12B	36.30B	32.03B	37.44B
Total Debt	7.00B	3.00B	5.00B	7.00B	9.00B	16.06B
Total Liabilities	22.53B	20.01B	24.81B	24.76B	22.57B	31.57B
Stockholders Equity	65.26B	65.07B	74.24B	68.64B	62.77B	59.10B
Cash Flow
Free Cash Flow	3.92B	6.35B	7.04B	8.73B	4.12B	11.04B
Operating Cash Flow	8.37B	10.71B	11.21B	12.22B	7.33B	13.60B
Investing Cash Flow	-5.25B	-4.77B	-4.57B	-3.22B	-3.23B	-2.94B
Financing Cash Flow	63.00M	-19.54B	-4.83B	-4.73B	-9.51B	-12.81B

Ohsho Food Service Corp. Technical Analysis

Technical Analysis SentimentPositive

Last Price2973.00

Price Trends

50DMA2918.79Positive

100DMA2894.80Positive

200DMA2933.22Positive

Market Momentum

MACD5.21Positive

RSI52.68Neutral

STOCH37.30Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9936, the sentiment is Positive. The current price of 2973.00 is above the 20-day moving average (MA) of 2939.75, above the 50-day MA of 2918.79, and above the 200-day MA of 2933.22, indicating a bullish trend. The MACD of 5.21 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 37.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9936.

Ohsho Food Service Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9936 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7550	70Outperform	JPY 1.98T	38.18	16.56%	0.60%	12.44%	51.49%
JP:7581	70Outperform	JPY 418.25B	39.50	8.59%	0.39%	17.44%	-1.16%
JP:9861	69Neutral	JPY 302.51B	53.60	―	0.48%	9.53%	37.85%
JP:9936	66Neutral	JPY 178.22B	26.77	―	1.88%	-0.10%	-24.16%
JP:3197	64Neutral	JPY 800.58B	43.63	9.87%	0.66%	9.51%	10.42%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7616	54Neutral	JPY 246.79B	142.42	―	0.22%	19.33%	-17.39%

* General Sector Average

Performance Comparison

JP:9936 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9936	Ohsho Food Service Corp.	2973.00	-114.31	-3.70%
JP:3197	Skylark Holdings Co	3648.00	459.31	14.40%
JP:7581	Saizeriya Co	8880.00	3784.82	74.28%
JP:7550	Zensho Holdings Co	13270.00	4523.12	51.71%
JP:7616	Colowide Co., Ltd.	2415.50	700.88	40.88%
JP:9861	Yoshinoya Holdings Co., Ltd.	4835.00	1827.35	60.76%

Ohsho Food Service Corp. Corporate Events

Ohsho Food Service Reports October Sales Growth

Nov 2, 2026

Ohsho Food Service Corp., a food-service operator with company-owned and franchise locations, reported October sales of 8,687 million yen across all company-operated stores, up 3.1% year over year. Existing company-operated stores generated 8,541 mil...

Ohsho Food Service Reports Interim Sales and Profit Shortfalls

Nov 1, 2026

OHSHO FOOD SERVICE reported consolidated interim sales of ¥57.203 billion, operating profit of ¥3.068 billion, ordinary profit of ¥3.262 billion and net profit attributable to owners of ¥2.023 billion for the six months ended September 30, 2026. Thes...

Ohsho Food Service Sees Profit Slump but Maintains Strong Financial Base

Oct 30, 2026

Ohsho Food Service Corp. reported a decline in performance for the second quarter of the fiscal year ending March 2027, with net sales slipping 2.2% year on year to ¥57,203 million. Operating profit fell sharply by 42.3% to ¥3,068 million, while prof...

Ohsho Food Service Shows Stable Sales and Network in September 2026

Oct 2, 2026

Ohsho Food Service Corp., a major Japanese casual dining chain listed in Tokyo, operates 549 company-run stores and 177 franchise outlets, totaling 726 restaurants nationwide. Its reporting distinguishes existing stores from newer and renovated outle...

Ohsho Food Service Keeps August Sales Flat as Traffic Softens

Sep 1, 2026

Ohsho Food Service Corp. reported sales at company-operated stores of 9,517 million yen in August 2026, essentially flat year on year, while existing stores generated 9,376 million yen, a slight 0.3% decline. The data indicate that overall revenue le...

Ohsho Food Service Sees Profit Drop but Holds FY3/27 Outlook and Dividend Plan

Aug 18, 2026

Ohsho Food Service Corp., a major Japanese casual-dining chain specializing in Chinese-style cuisine, operates a broad network of restaurants across Japan under the Gyoza no Ohsho brand. Its business model centers on affordable menu offerings and hig...

Ohsho Food Service Sets Up Wholly Owned Gyoza Diner Subsidiary in Australia

Aug 13, 2026

Ohsho Food Service Corp. has completed the registration of a wholly owned Australian subsidiary, Ohsho Food Service Australia Pty Ltd, based in Sydney and led by President Naoto Watanabe. The new unit will develop and operate Japan-style fast-casual...

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 13, 2026

Ohsho Food Service Corp. AI Stock Analysis