3418.T

The company maintains a debt-to-equity ratio of 0.86 and a current ratio of 2.25, indicating moderate leverage and strong short-term liquidity. However, its free cash flow is negative at -975,557,000 JPY, and capital expenditures are substantial at -1,896,588,000 JPY, suggesting ongoing investment in operations. The company's liquidity risk is assessed as medium, with a key flag indicating that net cash is negative after subtracting total debt.

Profitability metrics show a return on equity of 7.22% and a return on assets of 3.17%, which are below the industry median for ROE and ROA in the Restaurants & Bars sector. The operating margin is 4.41% (632,576,000 JPY / 14,336,766,000 JPY), and the net profit margin is 0.30% (428,819,000 JPY / 14,336,766,000 JPY), both of which are weak relative to industry norms.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic shifts and regulatory changes.

Outlook data indicates a projected revenue growth of 0.00% for the current fiscal year and 0.00% for the next fiscal year. Historical revenue growth has been flat, with no significant year-over-year changes in the most recent period. The company's capital expenditures are expected to remain high, driven by ongoing investments in infrastructure and expansion.

Risk factors include a medium liquidity risk due to negative free cash flow and high capital expenditures. The dilution risk is assessed as low, with no near-term pressure from share issuance or convertible instruments. The company's risk assessment does not indicate any material dilution potential in the next 12 months.

Recent events include a single analyst hold recommendation and no strong buy or sell ratings. The last actual EPS of 41.44 JPY exceeded the mean EPS estimate of 31.40 JPY, indicating better-than-expected performance in the most recent quarter.