Yoshiharu Global Co. operates Japanese restaurants in California. It offers ramen, sushi, bento boxes, and other Japanese cuisines. As of January 21, 2022, it owned and operated 6 restaurants in Southern California. Yoshiharu Global Co. was founded in 2016 and is based in Buena Park, California.

Yoshiharu Global Co.

Consumer Cyclical

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

YOSH reported revenue of USD 14mn in the last 12 months, up 5% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 139 611 588 448 485 296% from FY24 to USD -0.31.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 146ppts over past six months and grown 11ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -21.2% in the last 12 months, up from -24.2% in FY23. 

Historically, YOSH has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -23.7%, a growth from -46.7% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to -27.7%, below the peers. 

Yoshiharu Global Co. reported a return on equity (RoE) of -94.6% in the last 12 months, up from -103.7% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to -20.1% in the last 12 months, an increase from -29.6% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -6.3 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

YOSH has very poor trading liquidity. The average private investor can sell his common position in the stock in a single trading day under normal market conditions. Liquidity is very unstable and is somewhat unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to bleak profitability, negligible return on capital, inadequate interest coverage, poor cash flow generation, and an unfavourable capital structure. We note resilient historical revenue growth and low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, YOSH is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, YOSH is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. 

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Yoshiharu Global Co.

$ 2.09

3

Yoshiharu Global Co.

$ 2.09

3

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Profitability factor

$ 2.09

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