Kura Sushi Story

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KRUS -- USA Stock  

USD 23.53  0.12  0.51%

Kura Sushi USA is scheduled to announce its earnings today. The next earnings report is expected on the 13th of April 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 01/11/2021, 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. I will address a few possible reasons retail investors do not currently respect this stock.
Published over a week ago
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How much will Kura Sushi owe in February?
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 company has a current ratio of 1.04, suggesting that it may not be capable to disburse its financial obligations when due. The company has Profit Margin (PM) of (38.43) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (40.4) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.4.
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

Kura Sushi USA reported the previous year's revenue of 45.17 M. Net Loss for the year was (17.36 M) with loss before overhead, payroll, taxes, and interest of (3.02 M).

Liabilities Breakdown

Current Liabilities
72.9 M
Long-Term Liabilities
Total Liabilities90.16 Million
Current Liabilities12.9 Million
Long-Term Liabilities72.89 Million
Tax Liabilities243,842

Kura Sushi has 79 percent chance to finish below $18.3 next week

Kura Sushi latest potential upside advances over 7.34. Kura Sushi USA shows above-average downside volatility for the selected time horizon. We advise investors to inspect Kura Sushi USA further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Kura Sushi future alpha.

Our Final Perspective on Kura Sushi

While few other entities under the restaurants industry are still a bit expensive, Kura Sushi may offer a potential longer-term growth to retail investors. To conclude, as of the 11th of January 2021, we believe that at this point, Kura Sushi is somewhat reliable with below average chance of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our current 30 days buy-hold-sell advice on the enterprise is Hold.

About Contributor

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 Vlad Skutelnik 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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