Kura Sushi USA, Inc. (KRUS)
Valuation Overview•Is Kura Sushi USA, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 29/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
KRUS struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is driving exceptional top-line expansion (26.1% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-2.4%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $73.5M | +18.9% | +26.1% | +44.3% | — | |
| EBITDA | $429K | — | +24.1% | — | — | |
| Net Income | -$3.1M | +78.4% | -35.6% | — | — | |
| EPS (Diluted) | $-0.25 | +79.7% | — | — | — | |
| Free Cash Flow | -$13.3M | +24.8% | -91.4% | +4.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 11.0% | 13.2% | 12.9% | 10.8% |
| Operating Margin | -2.4% | -2.1% | -4.5% | -5.5% |
| Net Margin | -1.4% | -1.2% | -4.0% | -5.7% |
| FCF Margin | -9.5% | -10.3% | -13.2% | -16.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.17 | $-0.04 | +76.8% | ||
| Q1'26 | $-0.17 | $-0.23 | -35.3% | ||
| Q4'25 | $0.12 | $0.20 | +68.2% | ||
| Q3'25 | $-0.01 | $0.05 | +590.2% | ||
| Q2'25 | $-0.11 | $-0.14 | -28.5% | ||
| Q1'25 | $-0.20 | $-0.08 | +59.4% | ||
| Q4'24 | $-0.00 | $-0.46 | — | ||
| Q3'24 | $-0.02 | $-0.05 | -100.0% |
Total return is -35.5% (1Y), lagging the benchmark by -60.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -8.5% | -17.8% | — |
| 1Y | -35.5% | -60.5% | — |
| 3YCAGR | -17.4% | -37.3% | — |
| 5YCAGR | +7.7% | -5.9% | — |
| 10YCAGR | +9.7% | -4.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Kura Sushi USA, Inc. (KRUS) valuation, health, and returns.
Based on peer relative multiples, Kura Sushi USA, Inc. appears Limited: Expensive versus peers compared to industry peers.
Kura Sushi USA, Inc. has multiple valuation anchors: Peer Relative Fair Value: $0.44 | Wall Street Analyst Target: $73.40 (implying +47.9% upside). A convergence of these signals offers higher conviction.
Kura Sushi USA, Inc. displays weak financial health with a composite quality score of 29/100, supported by a Altman Z-Score of 2.0 (grey zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -1.2%.
Kura Sushi USA, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Kura Sushi USA, Inc.'s current growth trajectory is Decelerating. The company achieved +18.9% 1Y revenue growth and +79.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +26.1%.
Wall Street consensus is Buy based on 13 analysts, beating EPS expectations in 50% of recent quarters with a 1-quarter streak. The consensus price target represents a +47.9% change from current levels.
Investment risks for Kura Sushi USA, Inc. include: -55.5% 1-year max drawdown. Volatility risk is characterized by a beta of 1.13x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.