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Zensho Holdings Co Ltd (JP:7550)
:7550
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Zensho Holdings Co (7550) AI Stock Analysis

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JP:7550

Zensho Holdings Co

(Frankfurt:7550)

Rating:72Outperform
Price Target:
¥9,072.00
▼(-7.43% 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 (7550) vs. iShares MSCI Japan ETF (EWJ)

Zensho Holdings Co Business Overview & Revenue Model

Company DescriptionZensho 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 MoneyZensho Holdings Co. makes money through a multifaceted revenue model primarily centered around its extensive network of restaurant operations. The company's key revenue streams include sales from its various dining establishments, such as Sukiya, which attracts a large customer base in Japan and overseas. In addition to its restaurant business, Zensho Holdings generates income from its retail and food manufacturing segments, which supply products to its own outlets and external clients. The company's financial success is bolstered by strategic partnerships and a focus on expanding its international presence, particularly in Asia. Efficient cost management and innovation in menu offerings also contribute significantly to 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.14T965.78B779.96B658.50B595.05B
Gross Profit622.21B524.05B414.87B347.62B340.58B
EBITDA117.20B87.53B58.36B58.84B34.63B
Net Income39.29B30.69B13.27B13.87B2.26B
Balance Sheet
Total Assets813.11B748.06B469.56B427.17B396.02B
Cash, Cash Equivalents and Short-Term Investments91.73B102.08B64.69B42.41B37.64B
Total Debt365.70B339.99B252.88B230.06B228.37B
Total Liabilities572.73B533.41B353.73B322.69B310.59B
Stockholders Equity240.06B214.38B115.63B103.32B85.32B
Cash Flow
Free Cash Flow17.43B43.89B20.58B16.65B8.27B
Operating Cash Flow78.95B85.98B53.08B45.43B29.69B
Investing Cash Flow-66.50B-125.39B-35.20B-31.55B-23.52B
Financing Cash Flow-16.23B54.63B1.84B-11.99B1.75B

Zensho Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9800.00
Price Trends
50DMA
8397.48
Positive
100DMA
8340.23
Positive
200DMA
8411.15
Positive
Market Momentum
MACD
564.67
Negative
RSI
66.56
Neutral
STOCH
79.19
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 9800 is above the 20-day moving average (MA) of 8797.85, above the 50-day MA of 8397.48, and above the 200-day MA of 8411.15, indicating a bullish trend. The MACD of 564.67 indicates Negative momentum. The RSI at 66.56 is Neutral, neither overbought nor oversold. The STOCH value of 79.19 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€1.55T42.1616.30%0.69%14.00%4.67%
60
Neutral
C$4.69B7.3123.56%3.59%3.22%5.88%
$6.00B26.2813.79%0.70%
$6.68B17.5827.08%0.98%
$4.73B35.119.12%1.24%
68
Neutral
¥338.98B58.26
0.50%8.44%22.79%
54
Neutral
¥223.04B57.76
0.58%9.92%-26.57%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7550
Zensho Holdings Co
9,800.00
2,516.08
34.54%
MDNDF
Mcdonalds Holdings Company Japan
44.78
0.43
0.97%
SGLOF
FOOD & LIFE COMPANIES
23.21
4.30
22.74%
SKLYF
Skylark Holdings Co
16.04
1.90
13.44%
JP:3387
create restaurants holdings inc.
1,606.00
536.39
50.15%
JP:9861
Yoshinoya Holdings Co., Ltd.
3,426.00
330.58
10.68%

Zensho Holdings Co Corporate Events

Zensho Holdings Co. Evaluates Lowering Investment Units to Boost Market Participation
May 13, 2025

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
May 13, 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
May 13, 2025

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
May 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 13, 2025