Zensho Holdings Co (7550) AI Stock Analysis

• Market Cap: €1.34T
• Dividend Yield: 0.82%
• Average Volume (3M): 534.89K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.85
• Revenue Growth: 17.70%
• EPS Growth: 26.84%
• Country: JP
• Employees: 16,806
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): 30.56
• Shares Outstanding: 160,733,230
• 10 Day Avg. Volume: 746,060
• 30 Day Avg. Volume: 534,890
• PEG Ratio: -10.59
• Price to Book (P/B): 5.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥9,072.00 ▲(9.96%Upside)

The overall stock score reflects Zensho Holdings Co's strong financial performance, which is a major strength with robust revenue and cash flow growth. However, technical indicators suggest a neutral sentiment, and valuation concerns weigh on the score due to the high P/E ratio.

Zensho Holdings Co Business Overview & Revenue Model

Company Description

Zensho Holdings Co., Ltd. manages food service chain restaurants in Japan and internationally. The company also develops sales systems and food processing systems. Its restaurants offer gyudon, udon, and hamburger steaks, as well as provides conveyor-belt sushi restaurant and coffee shop, and dining services under the Sukiya, Nakau, Coco's, Big Boy, Victoria Station, Jolly Pasta, EL Torito, Hamazushi, Hanaya Yohei, Washoku Yohei, Gyuan, Ichiban, Takarjima, Denmaru, Kyubeiya, Seto Udon, Tamon'an, Moriva Coffee, and Café Milano brands in Japan. The company also serves customers under Sukiya brand name in China, Brazil, Thailand, Malaysia, Mexico, Taiwan, and Indonesia, as well as under the Chicken Rice Shop. In addition, it operates supermarket chains; and offers residential and nursing care services for the elderly. As of June 30, 2020, it operated 9,856 stores, which include 4,316 franchised restaurants. The company was formerly known as Zensho Co., Ltd. and changed its name to Zensho Holdings Co., Ltd. in October 2011. Zensho Holdings Co., Ltd. was founded in 1982 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Zensho Holdings Co. makes money primarily through its restaurant operations, which include a variety of dining concepts from fast-food to casual dining. Its key revenue streams are the sales generated from its vast network of restaurant outlets, particularly the Sukiya brand, which is well-known for its gyudon (beef bowl) offerings. The company also benefits from its vertically integrated business model, which includes food production and distribution, enabling them to manage costs efficiently and maintain quality control. Additionally, Zensho Holdings may engage in franchising, licensing, and strategic partnerships, which further bolster its revenue through franchise fees and royalties.

Zensho Holdings Co Financial Statement Overview

Summary

Zensho Holdings Co demonstrates impressive financial performance characterized by strong revenue and profit growth, efficient operations, and solid cash flow management. While leverage is maintained at a reasonable level, further improvement in equity ratios could enhance financial stability. Overall, the company is well-positioned in the restaurant industry with a favorable growth trajectory.

Income Statement

Zensho Holdings Co has shown strong revenue growth, with a significant increase from the previous year and consistent upward trajectory over multiple years. The gross profit margin is healthy, indicating the company effectively manages costs relative to revenue. The net profit margin has improved, demonstrating enhanced profitability. Both EBIT and EBITDA margins have shown positive trends, suggesting robust operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, reflecting a balanced approach to leverage. Return on equity (ROE) has improved, indicating effective use of shareholders' capital to generate profits. The equity ratio suggests a stable financial structure with a reasonable proportion of assets funded by equity, though there is room for improvement in reducing liabilities.

Cash Flow

There has been a noticeable improvement in free cash flow growth, illustrating enhanced cash generation capabilities. The operating cash flow to net income ratio is strong, indicating effective conversion of accounting profits to cash. The free cash flow to net income ratio supports this view, highlighting solid cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.11T	1.14T	965.78B	779.96B	658.50B	595.05B
Gross Profit	605.28B	622.21B	524.05B	414.87B	347.62B	340.58B
EBITDA	115.03B	117.20B	87.53B	53.75B	39.12B	34.63B
Net Income	44.10B	39.29B	30.69B	13.27B	13.87B	2.26B
Balance Sheet
Total Assets	827.60B	813.11B	748.06B	469.56B	427.17B	396.02B
Cash, Cash Equivalents and Short-Term Investments	96.24B	91.73B	102.08B	64.69B	42.41B	37.64B
Total Debt	304.13B	365.70B	339.99B	252.88B	230.06B	228.37B
Total Liabilities	579.46B	572.73B	533.41B	353.73B	322.69B	310.59B
Stockholders Equity	247.86B	240.06B	214.38B	115.63B	103.32B	85.32B
Cash Flow
Free Cash Flow	0.00	17.43B	43.89B	20.58B	16.65B	8.27B
Operating Cash Flow	0.00	78.95B	85.98B	53.08B	45.43B	29.69B
Investing Cash Flow	0.00	-66.45B	-125.35B	-35.20B	-31.55B	-23.52B
Financing Cash Flow	0.00	-16.27B	54.63B	1.84B	-11.99B	1.75B

Zensho Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8250.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7550, the sentiment is Positive. The current price of 8250 is above the 20-day moving average (MA) of 8177.00, below the 50-day MA of 8303.78, and below the 200-day MA of 8298.45, indicating a bullish trend. The MACD of 126.69 indicates Negative momentum. The RSI at 58.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7550.

Zensho Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	72 Outperform	¥224.73B	18.57	15.42%	2.82%	6.93%	219.43%
7550	72 Outperform	€1.34T	35.33	17.11%	0.82%	17.70%	26.84%
MDNDF		$5.47B	25.37	13.46%	0.75%	―	―
SGLOF		$5.70B	20.83	23.28%	0.91%	―	―
SKLYF		$4.72B	37.24	8.69%	0.69%	―	―
3387	67 Neutral	¥297.79B	53.33		0.56%	7.27%	10.84%
9861	52 Neutral	¥200.60B	52.78		0.64%	9.34%	-32.15%

Zensho Holdings Co Corporate Events

Zensho Holdings Co. Evaluates Lowering Investment Units to Boost Market Participation

Zensho Holdings Co., Ltd. has announced its position on lowering investment units, recognizing it as a strategy to enhance market participation and stock liquidity. The company plans to continue evaluating this approach based on market trends, stock price, shareholder composition, and cost-effectiveness, aligning with the Tokyo Stock Exchange’s disclosure regulations.

Zensho Holdings Reports Strong Financial Growth for FY 2025

Zensho Holdings Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 17.7% and operating profit increasing by 39.9% compared to the previous year. The company also announced a higher dividend per share, reflecting its strong financial performance and commitment to returning value to shareholders.

Zensho Holdings Proposes Amendments and New Bond-Type Class Shares

Zensho Holdings Co., Ltd. has announced a proposal for a partial amendment to its Articles of Incorporation and a shelf registration for issuing Series 1 Bond-Type Class Shares. This move is aimed at strengthening the company’s financial base to support sustainable growth without diluting voting rights. The issuance of these shares is part of a broader financial strategy to secure equity capital and enhance shareholder value, targeting both retail and institutional investors.

Zensho Holdings Announces Leadership Change to Drive Global Expansion

Zensho Holdings Co., Ltd. announced a change in its leadership structure, with Yohei Ogawa set to become the new Representative Director, President & CEO, effective June 27, 2025. This change is part of the company’s strategy to strengthen its management for further growth and to enhance its global business expansion, aligning with its corporate philosophy and commitment to increasing corporate value.