Saizeriya Co Ltd
TSE:7581

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Saizeriya Co Ltd
TSE:7581
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Price: 5 100 JPY -0.78% Market Closed
Market Cap: ¥266.6B

EV/OCF

7
Current
18%
Cheaper
vs 3-y average of 8.5

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
7
=
Enterprise Value
¥210.2B
/
Operating Cash Flow
¥28.8B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
7
=
Enterprise Value
¥210.2B
/
Operating Cash Flow
¥28.8B

Valuation Scenarios

Saizeriya Co Ltd is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (8.5), the stock would be worth ¥6 201.41 (22% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+91%
Average Upside
47%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 7 ¥5 100
0%
3-Year Average 8.5 ¥6 201.41
+22%
5-Year Average 7.9 ¥5 730.28
+12%
Industry Average 13.4 ¥9 763.48
+91%
Country Average 11.4 ¥8 294.64
+63%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
JP
Saizeriya Co Ltd
TSE:7581
250.6B JPY 7 16.5
US
McDonald's Corp
NYSE:MCD
213.2B USD 23.9 24.9
US
Starbucks Corp
NASDAQ:SBUX
112.4B USD 31.4 82.1
UK
Compass Group PLC
LSE:CPG
47.7B GBP 15.7 0.3
US
Yum! Brands Inc
NYSE:YUM
44.4B USD 27.5 28.5
US
Chipotle Mexican Grill Inc
NYSE:CMG
44.6B USD 20.6 29.1
CA
Restaurant Brands International Inc
NYSE:QSR
28B USD 25.8 36.1
IN
Eternal Ltd
NSE:ETERNAL
2.4T INR -3 001.8 1 002.3
US
Darden Restaurants Inc
NYSE:DRI
23.1B USD 15.5 20.9
CN
Yum China Holdings Inc
NYSE:YUMC
17.3B USD 10.9 18.6

Market Distribution

Lower than 78% of companies in Japan
Percentile
22nd
Based on 4 586 companies
22nd percentile
7
Low
0 — 8.2
Typical Range
8.2 — 16.2
High
16.2 —
Distribution Statistics
Japan
Min 0
30th Percentile 8.2
Median 11.4
70th Percentile 16.2
Max 277 515 327.6

Saizeriya Co Ltd
Glance View

Saizeriya Co., Ltd., a name synonymous with affordable and casual Italian dining in Japan, started its journey from a humble beginning in 1967 as a small Italian restaurant in Chiba. Over the years, under the visionary leadership of founder Yasuhiko Shōgaki, Saizeriya evolved into a recognized brand in the restaurant industry by focusing not just on the authenticity of its cuisine but on economic accessibility. The company's unique selling proposition is its commitment to low-priced, high-quality Italian food, showcasing an array of pastas, pizzas, and more that appeal to both young consumers and families. Part of Saizeriya's success formula includes optimizing operational efficiencies and employing a distinctive business model where many components of its supply chain are self-managed, from food production to distribution, which ensures that food quality is maintained while costs are minimized. In its operations, Saizeriya leverages a keen understanding of market demands to fine-tune its menu offerings and drive foot traffic to its outlets. The company's extensive presence, with numerous locations across Japan and expanding footprints in other Asian markets, positions it strongly against competitors in the casual dining segment. By keeping menu prices low, Saizeriya ensures that its restaurants are appealing, especially during economic downturns when consumers prioritize spending efficiency. Moreover, the company's innovative use of technology and continuous process improvements contribute to its operational success, effectively translating footfall into profitability. Thus, Saizeriya makes money through a high-volume, low-margin approach, where the focus is on selling large quantities of its appealing menu items, ensuring strong revenue streams despite keeping individual item costs modest.

Intrinsic Value
6 943.83 JPY
Undervaluation 27%
Intrinsic Value
Price ¥5 100
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