* Note: Prices are in Million (M) USD.
Description:
Kura Sushi USA, Inc. operates a distinctive portfolio of technology-driven Japanese restaurants throughout the United States, offering a unique fusion of traditional cuisine and innovative dining experiences. Headquartered in Irvine, California, the company utilizes interactive technologies, including conveyor belt sushi systems and tablet-based ordering, to significantly enhance customer engagement. As it continues to expand its presence in the fast-casual dining segment, Kura Sushi focuses on delivering high-quality, authentic dishes that cater to the increasing consumer demand for unique culinary adventures.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $47 M
Debt : $13 M
EBITDA : $4 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Consumer discretionary
Industry: Restaurants
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 827.92
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 8 overlapping fiscal years (max 20).Average Free Cash Flow: $-12 M
Average Revenue: $104 M
Revenue Converted To Free Cash Flow (%): -11.3%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-08-31): $238 M
Revenue 5 Years Ago (2019-08-31): $64 M
Total Growth over 5 Years: 270.2%
5-Year Revenue CAGR (Historical): 29.9%
Forward 5-Year CAGR (Tapered): 15.0%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-08-31): $11 M
Share Count 5 Years Ago (2020-08-31): $8 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.05
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.05
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 8 valid ROE years (max 20).Average ROE: -4.9%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $45.37
52-Week Low: $40.03
Threshold Price (15% Above 52-Week Low): $46.03
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $780 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on high P/E, we recommend do not exceed 0.20% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 19 points to above Kura Sushi USA Inc (KRUS) stock.
Fair Value PE
12, Industry Based PE
25, Growth Based PE
15, Risk-Free Anchored PE (25% MoS)
18.47. Based on these 4 values, average assigned is
17.62. Value-Trades has assined P/E value
17.70. An average (Current Year EPS + Next Year EPS) earning per share is
$0.0548.
Fair value using multiple P/Es (blended): $0.97 (PE 17.62 × EPS $0.05)
So the Final Fair Value is: $0.97
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.05
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 760 | $41.65 |
| Value-Trades Assigned | 17.7 | $0.97 |
