Hachi-Ban Co., Ltd. (9950) AI Stock Analysis

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Hachi-Ban Co., Ltd.

(TSE/TYO:9950)

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Rating:48Neutral

Price Target:JPY 3,292.00▼(-1.29% Downside)

Action:reiterated

Date:11/05/26

Hachi-Ban Co. is penalized significantly for its excessive valuation and deteriorating profitability. While the balance sheet is exceptionally well-capitalized, a P/E ratio nearing 200x, shrinking operating margins, and negative free cash flow present substantial fundamental risks. Bearish technical trends further reflect poor market momentum, underscoring the urgent need for improved cost control and operational efficiency to justify the stock's current premium pricing.

Positive Factors

Consistent Revenue GrowthSustained revenue growth across five years indicates a continuing recovery in customer demand and business scale. For a restaurant and franchise operator, this supports the durability of the store network, brand relevance, and ability to expand revenue over the next several quarters.

Negative Factors

Sharp Profitability DeclineThe sharp 2026 reduction in operating profit and net income weakens confidence in near-term earnings durability. If operating performance remains close to break-even, the company will have less capacity to absorb cost pressure, reinvest in stores, or translate revenue growth into shareholder returns.

Hachi-Ban Co., Ltd. (9950) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 9.80B
Dividend Yield: 0.60%
Average Volume (3M): 2,686
Price to Earnings (P/E): 196.1
Beta (1Y): 0.05
Revenue Growth: 8.54%
EPS Growth: -50.31%
Country: Japan
Employees: 174
Sector: General
Sector Strength: 55
Industry: Restaurants

Hachi-Ban Co., Ltd. Business Overview & Revenue Model

Company Description

Hachi-Ban Co., Ltd. manages restaurant operations across Japan and internationally. Beyond its core hospitality business, the company manufactures and sells a range of food products, including soups and extracts. It also acts as a wholesaler of comme...

How the Company Makes Money

Hachi-Ban primarily makes money through a restaurant chain model that combines (1) sales generated at company-operated restaurants and (2) income derived from franchising its brand and operating know-how. For company-operated stores, revenue is recog...

Hachi-Ban Co., Ltd. Financial Statement Overview

Summary

A highly stable balance sheet with low leverage provides a solid financial cushion, but this is heavily offset by severe profitability headwinds, drastically dropping operating margins, and consecutive years of negative free cash flow.

Income Statement

45Neutral

Balance Sheet

82Very Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.95B	8.64B	8.23B	7.62B	7.11B	5.92B
Gross Profit	3.97B	3.73B	3.63B	3.42B	3.28B	2.53B
EBITDA	285.51M	298.09M	486.06M	429.61M	382.67M	-128.21M
Net Income	50.17M	60.14M	236.20M	160.53M	65.18M	-168.64M
Balance Sheet
Total Assets	7.04B	5.61B	5.66B	5.85B	4.77B	5.16B
Cash, Cash Equivalents and Short-Term Investments	1.81B	682.08M	1.01B	1.58B	818.37M	1.32B
Total Debt	1.60B	477.72M	620.56M	877.77M	274.53M	884.62M
Total Liabilities	3.03B	1.80B	1.99B	2.47B	1.55B	2.00B
Stockholders Equity	4.01B	3.81B	3.67B	3.38B	3.22B	3.16B
Cash Flow
Free Cash Flow	0	-22.45M	-244.95M	265.33M	165.60M	96.54M
Operating Cash Flow	0	359.55M	418.60M	499.54M	385.13M	144.59M
Investing Cash Flow	0	-503.18M	-703.35M	-282.80M	-240.74M	39.98M
Financing Cash Flow	0	-212.00M	-317.49M	526.01M	-669.81M	-170.46M

Hachi-Ban Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price3335.00

Price Trends

50DMA3352.89Negative

100DMA3380.16Negative

200DMA3398.90Negative

Market Momentum

MACD-1.57Negative

RSI51.51Neutral

STOCH77.98Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9950, the sentiment is Neutral. The current price of 3335.00 is above the 20-day moving average (MA) of 3323.50, below the 50-day MA of 3352.89, and below the 200-day MA of 3398.90, indicating a neutral trend. The MACD of -1.57 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 77.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9950.

Hachi-Ban Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9950 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2798	65Neutral	JPY 9.94B	21.27	―	―	8.44%	54.69%
JP:3082	56Neutral	JPY 10.84B	153.57	―	0.76%	7.95%	-81.35%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:3063	52Neutral	JPY 13.95B	85.29	―	0.45%	-2.36%	141.91%
JP:3053	49Neutral	JPY 12.96B	77.04	―	―	12.09%	―
JP:9950	48Neutral	JPY 9.75B	196.06	―	0.60%	8.54%	-50.31%
JP:2764	43Neutral	JPY 10.51B	57.69	―	―	7.48%	―

* General Sector Average

Performance Comparison

JP:9950 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9950	Hachi-Ban Co., Ltd.	3335.00	-69.97	-2.05%
JP:2764	Hiramatsu Inc.	150.00	35.00	30.43%
JP:2798	Y's table corporation	3015.00	116.00	4.00%
JP:3053	Pepper Food Service Co., Ltd.	211.00	31.00	17.22%
JP:3063	j-Group Holdings Corp.	1119.00	354.75	46.42%
JP:3082	KICHIRI HOLDINGS & Co., Ltd.	989.00	65.35	7.08%

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 05, 2026

Hachi-Ban Co., Ltd. AI Stock Analysis