| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5049.40 | 62 |
| Intrinsic value (DCF) | 4236.47 | 36 |
| Graham-Dodd Method | 1171.15 | -62 |
| Graham Formula | 4755.68 | 53 |
Genki Sushi Co., Ltd. is a leading Japanese restaurant chain specializing in sushi, operating under brands such as Uobei, Genki Sushi, and Senryo. Founded in 1968 and headquartered in Utsunomiya, Japan, the company manages approximately 140 stores across Japan, Hong Kong, Mainland China, and other international markets. Genki Sushi is renowned for its conveyor belt sushi (kaiten-zushi) model, offering affordable, high-quality sushi in a fast-casual dining environment. The company leverages technology, including automated ordering systems, to enhance customer experience and operational efficiency. As part of the consumer cyclical sector, Genki Sushi benefits from Japan's strong sushi culture and growing global demand for Japanese cuisine. With a market capitalization of ¥70.28 billion, the company continues to expand its footprint while maintaining a strong brand presence in competitive markets.
Genki Sushi presents a stable investment opportunity with moderate growth potential, supported by its established brand and efficient operational model. The company's low beta (0.276) indicates lower volatility compared to the broader market, appealing to risk-averse investors. Financially, Genki Sushi reported ¥61.84 billion in revenue and ¥3.26 billion in net income for FY 2024, with a diluted EPS of ¥184.77. The company maintains a healthy operating cash flow of ¥6.22 billion and a solid cash position of ¥10.55 billion, though it carries ¥10.12 billion in total debt. A dividend of ¥70 per share reflects shareholder returns. Risks include intense competition in the sushi restaurant sector and potential macroeconomic pressures affecting consumer spending in cyclical industries.
Genki Sushi competes in the highly fragmented and competitive sushi restaurant industry, where differentiation is key. Its competitive advantage lies in its conveyor belt sushi model, which combines affordability with efficiency, appealing to both domestic and international customers. The company's use of technology, such as automated ordering systems, enhances operational efficiency and customer experience, setting it apart from traditional sushi restaurants. However, Genki Sushi faces stiff competition from both high-end sushi chains and budget-friendly alternatives. Its expansion into international markets, particularly Hong Kong and Mainland China, provides growth opportunities but also exposes it to regional economic fluctuations and cultural preferences. The company's strong brand recognition in Japan and moderate international presence position it well, but sustaining growth requires continuous innovation and adaptation to changing consumer tastes.