Kura Sushi Story

KRUS -- USA Stock

USD 24.16 0.51 2.16%

Macroaxis Story

Kura Sushi USA is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 11th of January 2021. Kura Sushi Sales per Share is relatively stable at the moment as compared to the past year. Kura Sushi reported last year Sales per Share of 4.88. As of 01/10/2021, Depreciation Amortization and Accretion is likely to grow to about 6.8 M, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop (9.8 M). As many millenniums are trying to avoid consumer cyclical space, it makes sense to sum up Kura Sushi USA a little further and try to understand its current market patterns. What exactly are Kura Sushi shareholders getting in February?

Published over a week ago

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Should I short my Kura Sushi (NASDAQ:KRUS) holdings?

This firm currently holds 64.51 M in liabilities with Debt to Equity (D/E) ratio of 1.41, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Kura Sushi has an asset utilization ratio of 63.04 percent. This connotes that the company is making $0.63 for each dollar of assets. An increasing asset utilization means that Kura Sushi USA is more efficient with each dollar of assets it utilizes for everyday operations.

Kura Sushi financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Kura Sushi, including all of Kura Sushi's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Kura Sushi assets, the company is considered highly leveraged. Understanding the composition and structure of overall Kura Sushi debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Kura Sushi Total Liabilities

Kura Sushi USA liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Kura Sushi USA has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Kura Sushi balance sheet include debt obligations and money owed to different Kura Sushi vendors, workers, and loan providers. Below is the chart of Kura Sushi short long-term liabilities accounts currently reported on its balance sheet.

You can use Kura Sushi USA financial leverage analysis tool to get a better grip on understanding its financial position

How important is Kura Sushi's Liquidity

Kura Sushi financial leverage refers to using borrowed capital as a funding source to finance Kura Sushi USA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kura Sushi financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Kura Sushi's total debt and its cash.

Breaking down Kura Sushi Indicators

The latest price spike of Kura Sushi USA may raise some interest from retail investors. The stock closed today at a share price of 18.82 on very low momentum in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.32. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Kura Sushi USA partners.

Asset Breakdown

107.8 M

Total Assets

Current Assets

	Total Assets	107.84 Million
	Current Assets	18.81 Million
	Assets Non Current	128.55 Million
	Tax Assets	1.3 Million

Will Kura Sushi continue to go crazy?

Semi variance is down to 14.49. It may connote a possible volatility fall. As of the 10th of January, Kura Sushi secures the Mean Deviation of 3.16, downside deviation of 4.52, and Risk Adjusted Performance of 0.128. Kura Sushi USA technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Kura Sushi, which can be compared to its peers in the industry. Please verify Kura Sushi USA variance and potential upside to decide if Kura Sushi USA is priced some-what accurately, providing market reflects its recent price of 18.82 per share. Given that Kura Sushi USA has jensen alpha of 0.4768, we recommend you to check Kura Sushi's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Take On Kura Sushi

While many other companies in the restaurants industry are either recovering or due for a correction, Kura Sushi may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 10th of January 2021, our primary 30 days buy-sell recommendation on the enterprise is Hold. We believe Kura Sushi is overvalued with below average probability of bankruptcy for the next two years.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Kura Sushi USA. Please refer to our Terms of Use for any information regarding our disclosure principles.

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