Colowide Co., Ltd. (7616) AI Stock Analysis

• Market Cap: ¥186.69B
• Dividend Yield: 0.3%
• Average Volume (3M): 624.66K
• Price to Earnings (P/E): 85.6
• Beta (1Y): 0.18
• Revenue Growth: 8.99%
• EPS Growth: 61.95%
• Country: JP
• Employees: 4,502
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 7.84
• Shares Outstanding: 106,453,545
• 10 Day Avg. Volume: 416,950
• 30 Day Avg. Volume: 624,660
• PEG Ratio: -1.83
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 9.60
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥1,704.00 ▼(-2.99% Downside)

Colowide Co., Ltd. receives a moderate overall stock score of 51. The company's financial performance shows positive trends, particularly in cash flow management, but high leverage and low net profitability are concerns. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold indicators. Valuation metrics suggest the stock may be overvalued, with a high P/E ratio and low dividend yield. These factors combined lead to a cautious outlook.

Positive Factors

Revenue Growth

Consistent revenue growth supports long-term business stability and indicates effective market positioning and product demand.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Gross Profit Margin

A strong gross profit margin reflects effective cost control, supporting sustainable profitability and competitive pricing strategies.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Low Net Profitability

Low net profitability limits the company's ability to generate internal funds for expansion and may affect investor confidence.

Return on Equity

Low return on equity indicates inefficient use of shareholder funds, potentially impacting long-term shareholder value creation.

Colowide Co., Ltd. Business Overview & Revenue Model

Company Description

Colowide Co., Ltd. (7616) is a prominent player in the food and beverage industry, primarily operating in Japan. The company focuses on the development, manufacturing, and distribution of a wide range of products, including ready-to-eat meals, frozen foods, and condiments. Colowide Co., Ltd. is also involved in the restaurant business, managing a variety of dining establishments that cater to diverse consumer preferences.

How the Company Makes Money

Colowide Co., Ltd. generates revenue through multiple streams, including the sale of its food products to retail and wholesale channels, as well as direct sales through its restaurant operations. The company benefits from economies of scale in production, allowing for competitive pricing and increased market share. Additionally, strategic partnerships with suppliers and distributors enhance its supply chain efficiency. The growth of the convenience food sector, driven by consumer demand for quick and easy meal solutions, further contributes to its earnings.

Colowide Co., Ltd. Financial Statement Overview

Summary

Colowide Co., Ltd. demonstrates a solid financial performance with improvements across key metrics. The income statement shows stable margins and revenue growth, while the balance sheet indicates high leverage, which is a potential risk. Cash flow metrics are strong, showcasing effective cash management. Overall, the company is on a positive trajectory, but high leverage and low net profitability are areas to watch.

Income Statement

Colowide Co., Ltd. has shown a steady improvement in its income statement metrics. The gross profit margin has remained strong at around 58%, indicating efficient cost management. The net profit margin is low at 0.46% TTM, but it has improved from previous losses, showing a positive trend. Revenue growth is modest but consistent, with a 1.44% increase TTM. EBIT and EBITDA margins are stable, reflecting operational efficiency. However, the low net profit margin suggests room for improvement in profitability.

Balance Sheet

The balance sheet of Colowide Co., Ltd. reveals a high debt-to-equity ratio of 2.10 TTM, indicating significant leverage, which could pose financial risks. Return on equity is low at 1.80% TTM, but it has improved from previous periods, suggesting better utilization of equity. The equity ratio is not explicitly provided, but the high leverage suggests a lower equity proportion. Overall, while there are improvements, the high leverage remains a concern.

Cash Flow

The cash flow statement shows positive trends, with a notable free cash flow growth rate of 11.19% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.31, suggesting healthy cash flow relative to net income. The free cash flow to net income ratio is 0.60, reflecting good cash conversion. These metrics highlight strong cash flow management, although the operating cash flow coverage ratio suggests moderate coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	273.04B	269.16B	241.28B	220.83B	175.63B	168.18B
Gross Profit	160.25B	156.77B	139.37B	124.21B	96.69B	92.66B
EBITDA	33.28B	32.58B	32.12B	17.12B	26.91B	11.85B
Net Income	702.00M	1.25B	2.90B	-6.80B	1.44B	-10.08B
Balance Sheet
Total Assets	340.58B	312.23B	265.12B	261.86B	267.70B	263.99B
Cash, Cash Equivalents and Short-Term Investments	68.57B	71.54B	46.57B	50.70B	48.53B	39.41B
Total Debt	190.60B	177.94B	155.21B	156.56B	160.46B	173.47B
Total Liabilities	254.16B	225.12B	210.98B	211.16B	207.67B	226.18B
Stockholders Equity	76.81B	77.54B	44.95B	42.74B	50.30B	31.09B
Cash Flow
Free Cash Flow	19.34B	17.40B	16.92B	19.56B	18.09B	-1.90B
Operating Cash Flow	30.12B	28.81B	29.88B	28.78B	23.83B	3.42B
Investing Cash Flow	-29.04B	-21.61B	-13.58B	-8.79B	-3.52B	-12.92B
Financing Cash Flow	29.41B	17.95B	-20.33B	-18.75B	-9.51B	15.89B

Colowide Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1756.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7616, the sentiment is Positive. The current price of 1756.5 is above the 20-day moving average (MA) of 1719.63, above the 50-day MA of 1750.02, and below the 200-day MA of 1819.54, indicating a neutral trend. The MACD of 3.69 indicates Negative momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 76.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7616.

Colowide Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8153	70 Outperform	¥120.56B	34.01	―	0.76%	5.15%	47.13%
2695	66 Neutral	¥128.49B	57.33	―	0.60%	5.43%	-62.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7581	61 Neutral	$252.31B	22.73	9.66%	0.51%	14.33%	36.83%
9936	61 Neutral	¥194.94B	22.03	―	1.57%	9.59%	8.08%
9861	53 Neutral	¥201.18B	47.55	―	0.67%	10.75%	-14.28%
7616	51 Neutral	¥186.69B	85.56	―	0.30%	8.99%	61.95%

Colowide Co., Ltd. Corporate Events

Colowide Completes Treasury Share Disposal for Remuneration

Colowide Co., Ltd. has completed the payment procedures for the disposal of 23,500 treasury shares as restricted share remuneration, a decision made during their Board of Directors meeting on July 15, 2025. This move involves granting shares to select company directors and an executive officer, potentially impacting the company’s financial structuring and stakeholder interests.

Colowide Reports Revenue Growth Amid Profit Decline

Colowide Co., Ltd. reported a 6.1% increase in revenue for the three months ending June 30, 2025, compared to the previous year. However, the company experienced a significant decline in profit before tax and profit attributable to owners, with decreases of 39.5% and 41.6%, respectively. Despite these challenges, Colowide forecasts a 7.2% increase in revenue for the fiscal year ending March 31, 2026, along with a substantial 70.4% rise in profit attributable to owners, indicating optimism for future growth.