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

• Market Cap: ¥197.37B
• Dividend Yield: 0.27%
• Average Volume (3M): 307.24K
• Price to Earnings (P/E): 249.4
• Beta (1Y): 0.29
• Revenue Growth: 10.45%
• EPS Growth: N/A
• Country: JP
• Employees: 4,502
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Restaurants
• EPS (TTM): -11.19
• Shares Outstanding: 106,453,545
• 10 Day Avg. Volume: 303,460
• 30 Day Avg. Volume: 307,240
• PEG Ratio: 0.55
• Price to Book (P/B): 3.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.05
• 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: 67 Neutral
• Price Target: ―

Colowide Co., Ltd. shows strong financial recovery and growth, especially in income and cash flow metrics, which supports its stock performance. However, high leverage poses a risk to financial flexibility. Technical analysis suggests an upward trend, but the lack of momentum indicators adds uncertainty. The valuation appears stretched with a high P/E ratio and low dividend yield, which tempers the overall attractiveness of the stock.

Colowide Co., Ltd. Business Overview & Revenue Model

Company Description

Colowide Co., Ltd. is a Japan-based company primarily engaged in the operation of restaurant chains. The company operates a variety of dining establishments, including izakayas (Japanese-style pubs), yakiniku (grilled meat) restaurants, and sushi bars. Colowide is known for its diverse portfolio of brands that cater to different dining preferences and experiences. With a focus on providing quality food and service, the company aims to enhance customer satisfaction and expand its presence in the food service industry.

How the Company Makes Money

Colowide Co., Ltd. generates revenue primarily through the operation of its restaurant chains. The company earns money from sales of food and beverages across its various dining establishments. Key revenue streams include direct sales at its restaurants, franchise fees from franchisees, and royalty income. The company's earnings are bolstered by its strategic location selection, brand diversification, and operational efficiencies. Additionally, Colowide may engage in partnerships with suppliers to optimize cost management and ensure consistent quality in its offerings, further contributing to its financial performance.

Colowide Co., Ltd. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
262.55B	241.28B	220.83B	175.63B	168.18B	235.33B
	Gross Profit
152.88B	139.37B	124.21B	96.69B	92.66B	134.17B
	EBIT
9.18B	8.71B	-6.74B	5.05B	-13.16B	-4.61B
	EBITDA
32.79B	32.12B	17.12B	28.51B	11.85B	20.15B
	Net Income Common Stockholders
2.22B	2.90B	-6.80B	1.44B	-10.08B	-6.45B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.87B	46.85B	50.70B	49.45B	39.41B	33.27B
	Total Assets
308.87B	265.12B	261.86B	267.70B	263.99B	248.83B
	Total Debt
159.81B	155.21B	156.56B	160.46B	173.47B	152.69B
	Net Debt
94.95B	108.90B	106.50B	111.93B	135.05B	120.48B
	Total Liabilities
220.14B	210.98B	211.16B	207.67B	226.18B	209.94B
	Stockholders Equity
78.53B	44.95B	42.74B	50.30B	31.44B	24.96B
Cash Flow		Free Cash Flow
16.71B	16.92B	19.56B	18.09B	-1.90B	16.78B
	Operating Cash Flow
27.26B	29.88B	28.78B	23.83B	3.42B	26.07B
	Investing Cash Flow
-21.74B	-13.58B	-8.79B	-3.52B	-12.92B	-15.35B
	Financing Cash Flow
16.52B	-20.33B	-18.75B	-9.51B	15.89B	-12.34B

Colowide Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1824.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1824 is below the 20-day moving average (MA) of 1836.48, above the 50-day MA of 1788.47, and above the 200-day MA of 1752.43, indicating a neutral trend. The MACD of 17.66 indicates Positive momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7616.

Colowide Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9936	80 Outperform	¥228.41B	24.46		1.52%	7.86%	1.99%
2768	74 Outperform	$727.08B	6.88	11.53%	4.63%	3.94%	13.79%
7550	70 Outperform	¥1.28T	33.79	17.11%	0.88%	21.84%	85.45%
7616	67 Neutral	¥197.37B	249.44		0.27%	10.45%	―
3387	67 Neutral	¥293.16B	52.50		0.57%	7.27%	10.84%
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%
9861	54 Neutral	¥206.87B	54.43		0.63%	9.34%	-32.15%

Colowide Co., Ltd. Corporate Events

Colowide Co., Ltd. Updates Corporate Governance and Diversity Goals

Colowide Co., Ltd. has announced updates to its corporate governance practices, emphasizing compliance and sustainable growth. The company plans to reduce its policy stockholdings and enhance diversity within its workforce, aiming for 30% female employees and managers by FY2026. These changes are part of Colowide’s strategy to strengthen business relationships and increase corporate value, while creating a rewarding work environment for its employees.

Colowide Co., Ltd. Reports Nine-Month Financial Results Amid Revenue Growth and Profit Decline

Colowide Co., Ltd. announced the completion of the quarterly review of its consolidated financial statements for the nine months ended December 31, 2024, with no changes to the earlier disclosed results. The company reported a revenue increase of 11.9% compared to the previous year, reaching 200,472 million yen, although profit before tax and profit attributable to owners of the parent decreased by 11.0% and 23.0%, respectively. The financial results indicate a strong revenue performance but highlight challenges in maintaining profit levels, which may impact the company’s strategic and operational decisions moving forward.

Colowide’s Subsidiary Shifts Business Strategy Amid Financial Adjustments

Colowide Co., Ltd. announced significant financial changes due to its subsidiary, Atom Corporation, transferring its karaoke and Izakaya businesses. This transfer is expected to result in extraordinary profits of approximately 1,634 million yen in the current fiscal year’s fourth quarter. Meanwhile, Atom Corporation has also recorded an impairment loss of 133 million yen due to store evaluations related to these business transfers. The company is currently reviewing the impact of these changes on its consolidated earnings forecast for the fiscal year ending March 31, 2025.

Colowide Achieves Foreign Exchange Gains in Q3

Colowide Co., Ltd. has recorded finance income from foreign exchange gains during the third quarter of the fiscal year ending March 31, 2025, offsetting previous losses and resulting in a gain of 532 million yen. This financial adjustment, primarily due to loan revaluations to overseas subsidiaries, may impact the company’s consolidated operating results, as referenced in their financial disclosures.

Colowide Reports Mixed Financial Results Amid Revenue Growth

Colowide Co., Ltd. reported consolidated financial results for the nine months ending December 31, 2024, showing an increase in revenue by 11.9% to 200,472 million yen, while profit before tax and profit attributable to owners of the parent declined by 11% and 23% respectively. The company anticipates revenue growth of 9.2% for the full fiscal year ending March 31, 2025, despite a projected decrease in profit attributable to owners by 30%, indicating a challenging market environment impacting profitability.