| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1499.71 | 62 |
| Intrinsic value (DCF) | 11076.55 | 1095 |
| Graham-Dodd Method | 198.74 | -79 |
| Graham Formula | 474.96 | -49 |
Kichiri & Co., Ltd. (3082.T) is a prominent Japanese food service company specializing in restaurant operations and management. Founded in 1988 and headquartered in Osaka, Japan, Kichiri operates in the highly competitive consumer cyclical sector, focusing on Japan's vibrant dining industry. The company manages a diverse portfolio of restaurants, catering to various culinary preferences, which positions it as a key player in Japan's food service market. With a market capitalization of approximately ¥10.2 billion, Kichiri leverages its local expertise and operational efficiency to maintain a strong presence in the industry. The company's financials reflect steady revenue growth, supported by effective cost management and strategic expansion. Kichiri's commitment to quality and customer satisfaction underscores its relevance in Japan's dynamic restaurant sector, making it a noteworthy entity for investors eyeing the consumer cyclical space.
Kichiri & Co., Ltd. presents a mixed investment profile. On the positive side, the company demonstrates stable revenue (¥13.7 billion) and net income (¥256.6 million), with a diluted EPS of ¥23.98 and a dividend yield supported by a ¥7.5 per share payout. Its operating cash flow (¥936 million) and cash reserves (¥2.98 billion) provide liquidity, though capital expenditures (¥-546 million) indicate ongoing investments. However, the company's total debt (¥3.77 billion) is a concern, and its beta of 1.022 suggests market-aligned volatility. Investors should weigh Kichiri's steady performance against sector competition and Japan's economic conditions, which influence consumer spending on dining.
Kichiri & Co., Ltd. competes in Japan's crowded restaurant industry, where differentiation and operational efficiency are critical. The company's competitive advantage lies in its localized brand strength and diversified restaurant portfolio, which mitigates reliance on a single cuisine or concept. However, Kichiri faces intense competition from larger chains and niche players. Its mid-market positioning allows it to appeal to a broad customer base, but it lacks the global scale of multinational competitors. The company's financial health is stable, but its debt levels could limit agility in a downturn. Kichiri's focus on Japan restricts its growth potential compared to peers with international footprints, though this also insulates it from foreign exchange risks. To maintain competitiveness, Kichiri must innovate its offerings and optimize costs, particularly as labor and ingredient prices rise in Japan.