Kura Sushi USA, Inc. (KRUS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Brinker International, Inc.

Arcos Dorados Holdings, Inc.

Sweetgreen, Inc.

Cheesecake Factory, Inc.

Kura Sushi USA, Inc.

First Watch Restaurant Group, Inc.

Cracker Barrel Old Country Store, Inc.

Cannae Holdings, Inc.

Jack in the Box, Inc.

Dine Brands Global, Inc.

Portillo's, Inc.

Why is Kura Sushi USA, Inc. ?

Poor Management Efficiency with a low ROE of 0.06%

The company has been able to generate a Return on Equity (avg) of 0.06% signifying low profitability per unit of shareholders funds
OPERATING CASH FLOW(Y) Highest at USD 24.1 MM
RAW MATERIAL COST(Y) Fallen by -11.96% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 59.53 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -41.18%, its profits have fallen by -53%

High Institutional Holdings at 94.08%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.71% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -41.18% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kura Sushi USA, Inc. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kura Sushi USA, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kura Sushi USA, Inc.

-41.18%

-0.74

63.89%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

51.02%

EBIT Growth (5y)

12.40%

EBIT to Interest (avg)

-6.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.17

Tax Ratio

1.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

94.08%

ROCE (avg)

ROE (avg)

0.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.49

EV to EBIT

-173.46

EV to EBITDA

72.24

EV to Capital Employed

3.94

EV to Sales

2.62

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.27%

ROE (Latest)

-0.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 24.1 MM

RAW MATERIAL COST(Y)

Fallen by -11.96% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 59.53 times

NET SALES(Q)

Highest at USD 80.02 MM

PRE-TAX PROFIT(Q)

At USD -0.45 MM has Grown at 72.47%

NET PROFIT(Q)

At USD -0.5 MM has Grown at 70.05%

-3What is not working for the Company

NET PROFIT(HY)

At USD -3.32 MM has Grown at -25.86%

DEBT-EQUITY RATIO (HY)

Highest at 68.17 %

Here's what is working for Kura Sushi USA, Inc.

Operating Cash Flow

Highest at USD 24.1 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 80.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

At USD -0.45 MM has Grown at 72.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.5 MM has Grown at 70.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debtors Turnover Ratio

Highest at 59.53 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -11.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 4.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Kura Sushi USA, Inc.

Debt-Equity Ratio

Highest at 68.17 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio