High Profit MarginsSustained high gross margin with solid operating and EBITDA margins points to a defensible cost structure and pricing power. Over the next 2–6 months this margin profile supports cash generation, cushions against demand swings, and enables reinvestment or stable distributions.

Improved Leverage And Strong ROEMarked reduction in leverage and a high ROE indicate stronger balance sheet resilience and efficient capital use. Lower debt reduces interest risk and boosts financial flexibility, supporting durable investment, M&A optionality, or steady shareholder returns over the medium term.

Strong Cash ConversionOperating and free cash flow materially exceed net income, showing high cash conversion quality. This persistent cash generation underpins sustainable operations, funds capex or dividends, and provides a buffer against earnings volatility over coming quarters.

Bears Say

Declining EPSA near-18% decline in EPS signals earnings pressure that may reflect margin compression, one-offs, or lower operational leverage. If this trend persists it can reduce retained earnings, limit reinvestment capacity and weaken per-share profitability over the medium term.

Negative Free Cash Flow GrowthAlthough cash conversion ratios are strong, the contraction in free cash flow year-over-year indicates emerging stress in cash generation or higher investment needs. Continued FCF declines would constrain discretionary spending and make dividends or buybacks harder to sustain.

Modest Revenue GrowthLow single-digit top-line growth suggests limited market expansion or exposure to mature end markets. With constrained revenue upside, sustaining margin gains and scaling operating leverage becomes harder, potentially capping medium-term profitability improvement.

5845 FAQ

What was Zenhoren Co., Ltd.’s price range in the past 12 months?

Zenhoren Co., Ltd. lowest stock price was ¥659.00 and its highest was ¥1084.00 in the past 12 months.

What is Zenhoren Co., Ltd.’s market cap?

Zenhoren Co., Ltd.’s market cap is ¥25.95B.

When is Zenhoren Co., Ltd.’s upcoming earnings report date?

Zenhoren Co., Ltd.’s upcoming earnings report date is May 14, 2026 which is in 86 days.

How were Zenhoren Co., Ltd.’s earnings last quarter?

Zenhoren Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥8.62 earnings per share for the quarter, beating the consensus estimate of N/A by ¥8.62.

Is Zenhoren Co., Ltd. overvalued?

According to Wall Street analysts Zenhoren Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Zenhoren Co., Ltd. pay dividends?

Zenhoren Co., Ltd. pays a Annually dividend of ¥40 which represents an annual dividend yield of 3.49%. See more information on Zenhoren Co., Ltd. dividends here

What is Zenhoren Co., Ltd.’s EPS estimate?

Zenhoren Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Zenhoren Co., Ltd. have?

Zenhoren Co., Ltd. has 26,646,100 shares outstanding.

What happened to Zenhoren Co., Ltd.’s price movement after its last earnings report?

Zenhoren Co., Ltd. reported an EPS of ¥8.62 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -2.964%.

Which hedge fund is a major shareholder of Zenhoren Co., Ltd.?

Currently, no hedge funds are holding shares in JP:5845

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Zenhoren Co., Ltd.

Zenhoren Co.,Ltd. provides rent liability guarantee services in Japan. It offers rent guarantee services for residential buildings, stores and offices, parking lots, warehouses and trunk rooms, and fire insurance and real estate companies, as well as tuition fee guarantee services. The company was incorporated in 2001 and is headquartered in Naha, Japan.