Umenohana Group Co Ltd

Umenohana Group maintains a capital structure with a debt-to-equity ratio of 5.05, indicating a high reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.81, suggesting limited short-term liquidity to cover immediate liabilities. Cash and equivalents amount to 2,761,126,000 JPY, but this is insufficient to offset the long-term debt of 17,006,522,000 JPY, resulting in a net cash deficit. The price-to-book ratio of 2.24 and price-to-tangible-book ratio of 2.24 suggest the market values the company at a premium to its book value.

Profitability metrics show a return on equity (ROE) of 10.2%, which is relatively strong for the Restaurants & Bars industry, but the return on assets (ROA) of 1.37% is below the typical industry benchmark. Operating income of 99,684,000 JPY and net income of 343,283,000 JPY indicate modest profitability, with a gross profit margin of 66.2% (4,886,496,000 JPY on 7,379,110,000 JPY revenue). These figures suggest the company is managing to maintain margins despite the cyclical nature of its business.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification beyond Japan. This lack of diversification increases exposure to local economic conditions and consumer spending trends. No material revenue is attributed to international operations, and the company does not report segment-specific performance metrics.

Looking ahead, the company's revenue outlook is constrained by the cyclical nature of the Restaurants & Bars industry. The most recent actual revenue of 29,440,640,000 JPY is significantly lower than the reported 7,379,110,000 JPY, suggesting a potential data discrepancy or a shift in reporting periods. Analysts have recorded a negative EPS of -43.59 JPY, which contrasts with the positive net income of 343,283,000 JPY, indicating a possible difference in accounting periods or adjustments. The company's capital expenditure of -771,868,000 JPY suggests a reduction in investment, which may reflect a strategic shift or financial constraints.

The risk assessment highlights liquidity as a medium concern, with the company's net cash position being negative after subtracting total debt. Dilution risk is assessed as low, with no significant dilution potential in the basic shares outstanding. The company's valuation is supported by a price-to-earnings ratio of 21.95 and an enterprise value-to-revenue ratio of 2.95, which are in line with industry norms. However, the high debt-to-equity ratio and low current ratio suggest potential financial stress in the event of a downturn.

Recent events include the filing of financial data that shows a significant discrepancy between the reported revenue and the analyst-estimated revenue. The company has not disclosed any major strategic initiatives or capital-raising activities in the latest filings. The absence of recent transcripts or press releases suggests limited public communication about the company's strategic direction.

Revenue grew at an 8.0% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Net margin of 4.7% outperforms the 2.4% cohort median, indicating superior profitability relative to peers.

Cash conversion ratio of 2.01 is above the 1.67 cohort median, suggesting efficient cash generation from operations.

Long-term debt decreased from 21.7 billion JPY in 2021 to 16.7 billion JPY in 2025, showing deleveraging.

Debt-to-equity ratio of 5.05 is in the bottom quartile, indicating significantly higher leverage than peers.

Operating margin of 1.4% falls well below the 3.5% cohort median, reflecting weak operational efficiency.

The company faces high credit risk and medium liquidity risk according to internal risk flag assessments.

Revenue ¥8.44B, +0,4% YoY; Operating income +70,4% YoY.

• ▍Revenue ¥8.44B, +0,4% YoY
• ▍Operating income +70,4% YoY
• ▍Net income +58,5% YoY
• ▍Net margin 4.4%

Revenue ¥7.02B, +2,0% YoY; Operating income −231,8% YoY.

• ▍Revenue ¥7.02B, +2,0% YoY
• ▍Operating income −231,8% YoY
• ▍Net income −276,0% YoY
• ▍Net margin -1.7%

Revenue ¥7.18B, −2,7% YoY; Operating income −477,3% YoY.

• ▍Revenue ¥7.18B, −2,7% YoY
• ▍Operating income −477,3% YoY
• ▍Net income −231,0% YoY
• ▍Net margin -6.3%

Revenue ¥8.41B; Operating income ¥370.5M.

• ▍Revenue ¥8.41B
• ▍Operating income ¥370.5M
• ▍Net margin 2.8%

Revenue ¥6.97B; Operating income -¥263.3M.

• ▍Revenue ¥6.97B
• ▍Operating income -¥263.3M
• ▍Net margin -3.4%

Revenue ¥6.88B; Operating income ¥34.5M.

• ▍Revenue ¥6.88B
• ▍Operating income ¥34.5M
• ▍Net margin 1.0%

Revenue ¥7.38B; Operating income ¥99.7M.

• ▍Revenue ¥7.38B
• ▍Operating income ¥99.7M
• ▍Net margin 4.7%

Revenue ¥29.44B, −1,3% YoY; Operating income −133,0% YoY.

• ▍Revenue ¥29.44B, −1,3% YoY
• ▍Operating income −133,0% YoY
• ▍Net income −137,6% YoY
• ▍Free cash flow −190,6% YoY
• ▍Net margin -1.3%

Revenue ¥29.82B, +8,6% YoY; Operating income +270,4% YoY.

• ▍Revenue ¥29.82B, +8,6% YoY
• ▍Operating income +270,4% YoY
• ▍Net income +331,5% YoY
• ▍Free cash flow +242,2% YoY
• ▍Net margin 3.4%

Revenue ¥27.46B, +21,5% YoY; Operating income −203,8% YoY.

• ▍Revenue ¥27.46B, +21,5% YoY
• ▍Operating income −203,8% YoY
• ▍Net income −303,0% YoY
• ▍Free cash flow −198,5% YoY
• ▍Net margin -1.6%

Revenue ¥22.59B, +4,6% YoY; Operating income +117,8% YoY.

• ▍Revenue ¥22.59B, +4,6% YoY
• ▍Operating income +117,8% YoY
• ▍Net income +111,3% YoY
• ▍Free cash flow +135,6% YoY
• ▍Net margin 1.0%

Revenue ¥21.60B; Operating income -¥2.26B.

• ▍Revenue ¥21.60B
• ▍Operating income -¥2.26B
• ▍Net margin -8.9%