Zensho Holdings Co (7550) AI Stock Analysis

• Market Cap: ¥1.57T
• Dividend Yield: 0.71%
• Average Volume (3M): 515.81K
• Price to Earnings (P/E): 42.5
• Beta (1Y): 0.98
• Revenue Growth: 14.00%
• EPS Growth: 4.67%
• Country: JP
• Employees: 16,806
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 48.61
• Shares Outstanding: 160,733,230
• 10 Day Avg. Volume: 318,190
• 30 Day Avg. Volume: 515,813
• PEG Ratio: 1.39
• Price to Book (P/B): 5.25
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 72.35
• 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 ▼(-8.50% Downside)

Zensho Holdings Co's strong financial performance is the most significant factor driving its stock score, supported by robust revenue and profit growth. The technical analysis indicates a strong upward trend, although caution is advised due to potential overbought conditions. The high P/E ratio suggests the stock may be overvalued, which impacts the overall score.

Zensho Holdings Co Business Overview & Revenue Model

Company Description

Zensho Holdings Co., Ltd. (7550) is a prominent Japanese company operating primarily in the food service and retail sectors. The company is best known for its extensive network of restaurants, including the popular Sukiya chain, which specializes in gyudon (beef bowls). Zensho also operates in the food processing sector, providing a range of food products. Through its diverse portfolio, Zensho aims to deliver quality dining experiences while maintaining a strong focus on efficiency and customer satisfaction.

How the Company Makes Money

Zensho Holdings generates revenue primarily through its extensive restaurant operations, with the Sukiya chain being a major contributor to its income. The company makes money by selling meals and beverages directly to consumers in its restaurants. Additionally, Zensho has revenue streams from its food processing division, which produces and sells various food products to both retail and wholesale markets. The company also engages in strategic partnerships and collaborations that enhance its product offerings and market reach. Factors such as effective cost management, menu diversification, and the ability to adapt to consumer trends further bolster its earnings.

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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16T	1.14T	965.78B	779.96B	658.50B	595.05B
Gross Profit	631.56B	622.21B	524.05B	414.87B	347.62B	340.58B
EBITDA	114.39B	117.20B	87.53B	58.36B	58.84B	34.63B
Net Income	36.51B	39.29B	30.69B	13.27B	13.87B	2.26B
Balance Sheet
Total Assets	808.23B	813.11B	748.06B	469.56B	427.17B	396.02B
Cash, Cash Equivalents and Short-Term Investments	84.02B	91.73B	102.08B	64.69B	42.41B	37.64B
Total Debt	306.52B	365.70B	339.99B	252.88B	230.06B	228.37B
Total Liabilities	572.03B	572.73B	533.41B	353.73B	322.69B	310.59B
Stockholders Equity	235.71B	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	-66.50B	-125.39B	-35.20B	-31.55B	-23.52B
Financing Cash Flow	0.00	-16.23B	54.63B	1.84B	-11.99B	1.75B

Zensho Holdings Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9915.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7550, the sentiment is Neutral. The current price of 9915 is below the 20-day moving average (MA) of 10008.65, above the 50-day MA of 9790.34, and above the 200-day MA of 8603.87, indicating a neutral trend. The MACD of 98.74 indicates Positive momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 15.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7550.

Zensho Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7550	72 Outperform	¥1.57T	42.53	16.30%	0.71%	14.00%	4.67%
2702	67 Neutral	$824.35B	24.34	13.79%	0.80%	1.82%	18.05%
3563	66 Neutral	$817.28B	36.01	27.08%	0.41%	17.87%	80.88%
3197	64 Neutral	$666.58B	43.01	9.12%	0.66%	14.39%	47.75%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3387	58 Neutral	¥318.49B	56.67	―	0.57%	9.28%	7.59%
9861	53 Neutral	¥200.92B	47.49	―	0.68%	10.75%	-14.28%

Zensho Holdings Co Corporate Events

Zensho Holdings Completes Series 1 Bond-Type Class Shares Issuance

Zensho Holdings Co., Ltd. announced the withdrawal of its shelf registration for the Series 1 Bond-Type Class Shares, as the planned issuance of these shares has been completed. This move signifies the company’s successful completion of its financial strategy, potentially impacting its market positioning and financial operations positively.

The most recent analyst rating on (JP:7550) stock is a Buy with a Yen9072.00 price target. To see the full list of analyst forecasts on Zensho Holdings Co stock, see the JP:7550 Stock Forecast page.

Zensho Holdings Completes Interim Financial Review Amid Profit Decline

Zensho Holdings Co., Ltd. announced the completion of the interim review of its consolidated quarterly financial statements for the first quarter of the fiscal year ending March 31, 2026. The review was conducted in connection with the issuance of Series 1 Bond-Type Class Shares, and no changes were made to the financial statements disclosed earlier. The company’s financial results showed a decrease in operating and ordinary profit compared to the previous year, impacting its financial performance.

The most recent analyst rating on (JP:7550) stock is a Buy with a Yen9072.00 price target. To see the full list of analyst forecasts on Zensho Holdings Co stock, see the JP:7550 Stock Forecast page.

Zensho Holdings Announces Dividend Rate for Series 1 Bond-Type Shares

Zensho Holdings Co., Ltd. has announced the determination of the annual dividend rate for its Series 1 Bond-Type Class Shares, set at 4.000% per annum for fiscal years ending on or before March 31, 2031. This strategic financial move is part of a broader issuance plan involving 10 million shares, aimed at strengthening the company’s capital structure and enhancing shareholder value.

The most recent analyst rating on (JP:7550) stock is a Buy with a Yen9072.00 price target. To see the full list of analyst forecasts on Zensho Holdings Co stock, see the JP:7550 Stock Forecast page.

Zensho Holdings Announces Terms for JPY 20 Billion Hybrid Bonds

Zensho Holdings Co., Ltd. has announced the terms for its issuance of the 1st series of publicly offered hybrid bonds, amounting to JPY 20 billion. These bonds, rated BBB by the Japan Credit Rating Agency, feature optional interest payment deferral and early redemption provisions. The proceeds will be used for expanding and renovating restaurants and stores, as well as investing in digital and AI enhancements, indicating a strategic focus on growth and modernization.

The most recent analyst rating on (JP:7550) stock is a Buy with a Yen9072.00 price target. To see the full list of analyst forecasts on Zensho Holdings Co stock, see the JP:7550 Stock Forecast page.

Zensho Holdings Announces Bond-Type Class Shares Issuance to Boost Equity

Zensho Holdings Co., Ltd. announced the issuance of Series 1 Bond-Type Class Shares and a reduction in share capital and additional paid-in capital. This strategic move is part of the company’s efforts to raise equity capital while minimizing the impact on existing shareholders. The Bond-Type Class Shares are designed to appeal to a broad range of domestic investors, including retail investors, and are expected to support the company’s medium-term management plans focused on growth and innovation in the global food industry.