Fact based stock research
Kura Sushi (TSE:2695)
JP3268200007
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Kura Sushi stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 76 (better than 76% compared with investment alternatives), Kura Sushi (Restaurants, Japan) shares have much better financial characteristics than comparable stocks. Shares of Kura Sushi are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives). But they show above-average growth (Growth Rank of 63) and are safely financed (Safety Rank of 70, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 76, is a strong buy recommendation based on Kura Sushi's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Kura Sushi exhibits low value (Obermatt Value Rank of 41), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 63). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 70) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Japan |
| Industry | Restaurants |
| Index | |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Kura Sushi
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 53 |
|
53 |
|
45 |
|
41 |
|
| GROWTH | ||||||||
| GROWTH | 26 |
|
93 |
|
75 |
|
63 |
|
| SAFETY | ||||||||
| SAFETY | 62 |
|
50 |
|
75 |
|
70 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
8 |
|
9 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
55 |
|
52 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 76 (better than 76% compared with investment alternatives), Kura Sushi (Restaurants, Japan) shares have much better financial characteristics than comparable stocks. Shares of Kura Sushi are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives). But they show above-average growth (Growth Rank of 63) and are safely financed (Safety Rank of 70, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 76, is a strong buy recommendation based on Kura Sushi's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Kura Sushi exhibits low value (Obermatt Value Rank of 41), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 63). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 70) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 53 |
|
53 |
|
45 |
|
41 |
|
| GROWTH | ||||||||
| GROWTH | 26 |
|
93 |
|
75 |
|
63 |
|
| SAFETY | ||||||||
| SAFETY | 62 |
|
50 |
|
75 |
|
70 |
|
| COMBINED | ||||||||
| COMBINED | 69 |
|
88 |
|
88 |
|
76 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 41 (worse than 59% compared with alternatives), Kura Sushi shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Kura Sushi. Price-to-Sales (P/S) is 63, which means that the stock price compared with what market professionals expect for future sales is lower than 63% of comparable companies, indicating a good value concerning to Kura Sushi's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 27, meaning that dividends are expected to be lower than for 73% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 52% of alternatives (only 48% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 80% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 41, is a hold recommendation based on Kura Sushi's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Kura Sushi could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Kura Sushi looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 70 |
|
70 |
|
70 |
|
63 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 34 |
|
23 |
|
10 |
|
20 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 38 |
|
57 |
|
54 |
|
48 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 60 |
|
25 |
|
25 |
|
27 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 53 |
|
53 |
|
45 |
|
41 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 63 (better than 63% compared with alternatives), Kura Sushi shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Kura Sushi. Profit Growth has a rank of 98, which means that currently professionals expect the company to grow its profits more than 98% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 73 (above 73% of alternative investments). But Sales Growth has a below the median rank of 18, which means that, currently, professionals expect the company to grow less than 82% of its competitors, and Capital Growth also has a lower rank of 37. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 63, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Kura Sushi. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 39 |
|
67 |
|
76 |
|
18 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 75 |
|
89 |
|
89 |
|
98 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
72 |
|
42 |
|
37 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 50 |
|
81 |
|
43 |
|
73 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 26 |
|
93 |
|
75 |
|
63 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Kura Sushi has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Kura Sushi is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Kura Sushi and the other two below average. Leverage is at a rank of 59 meaning the company has a below-average debt-to-equity ratio. It has less debt than 59% of its competitors.Refinancing is at a rank of 47, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 53% of its competitors. Liquidity is at a rank of 48, meaning that the company generates less profit to service its debt than 52% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Kura Sushi has a financing structure that is safer than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Kura Sushi are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Kura Sushi and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 74 |
|
62 |
|
62 |
|
59 |
|
| REFINANCING | ||||||||
| REFINANCING | 30 |
|
53 |
|
45 |
|
47 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 10 |
|
10 |
|
51 |
|
48 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 62 |
|
50 |
|
75 |
|
70 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
93 |
|
16 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
7 |
|
89 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
18 |
|
1 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
13 |
|
5 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
8 |
|
9 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Kura Sushi from November 14, 2024.
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