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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Arcos Dorados Holdings, Inc.

Brinker International, Inc.

Kura Sushi USA, Inc.

First Watch Restaurant Group, Inc.

Cheesecake Factory, Inc.

Cracker Barrel Old Country Store, Inc.

Cannae Holdings, Inc.

Sweetgreen, Inc.

Jack in the Box, Inc.

Portillo's, Inc.

Dine Brands Global, 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

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At USD 0.04 MM has Grown at 59.26%
ROCE(HY) Lowest at -4.77%
RAW MATERIAL COST(Y) Grown by 5.27% (YoY)

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -55.52%, its profits have fallen by -202.6%

Below par performance in long term as well as near term

Along with generating -55.52% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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.

-46.32%

-0.67

70.23%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.77%

EBIT Growth (5y)

9.52%

EBIT to Interest (avg)

-6.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.20

Tax Ratio

1.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

91.24%

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

4.23

EV to EBIT

-212.97

EV to EBITDA

99.58

EV to Capital Employed

5.74

EV to Sales

3.41

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.70%

ROE (Latest)

-0.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

9What is working for the Company

PRE-TAX PROFIT(Q)

At USD 0.62 MM has Grown at 868.75%

NET PROFIT(Q)

At USD 0.56 MM has Grown at 14,025%

CASH AND EQV(HY)

Highest at USD 145.67 MM

NET SALES(Q)

Highest at USD 73.97 MM

EPS(Q)

Highest at USD 0.05

-11What is not working for the Company

INTEREST(HY)

At USD 0.04 MM has Grown at 59.26%

ROCE(HY)

Lowest at -4.77%

RAW MATERIAL COST(Y)

Grown by 5.27% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 46.75 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 107.54 times

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

Pre-Tax Profit

At USD 0.62 MM has Grown at 868.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.56 MM has Grown at 14,025%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 73.97 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

EPS

Highest at USD 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 145.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at USD 3.6 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.

Interest

At USD 0.04 MM has Grown at 59.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 46.75 %

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

Inventory Turnover Ratio

Lowest at 107.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.27% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales