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

• Market Cap: ¥182.28B
• Dividend Yield: 0.29%
• Average Volume (3M): 624.66K
• Price to Earnings (P/E): 83.8
• Beta (1Y): 0.17
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥1,768.00 ▲(2.02% Upside)

Colowide Co., Ltd. has potential for growth due to strong revenue and cost management, but faces significant challenges in profitability and leverage. The technical indicators suggest short-term weakness, and the high P/E ratio indicates potential overvaluation. Investors should be cautious of the financial risks posed by high debt levels.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Colowide's products and services, supporting long-term business expansion and market presence.

Cost Management

Effective cost management enhances profitability potential and competitive pricing, strengthening Colowide's market position over time.

Supply Chain Efficiency

Efficient supply chain operations reduce costs and improve product availability, supporting Colowide's ability to meet consumer demand consistently.

Negative Factors

High Debt Levels

Excessive leverage can limit financial flexibility and increase risk, potentially impacting Colowide's ability to invest in growth opportunities.

Low Profitability

Low profitability margins suggest challenges in converting revenue into profit, which could hinder long-term financial health and investor returns.

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, affecting Colowide's ability to fund operations and growth without external financing.

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	278.42B	269.16B	241.28B	220.83B	175.63B	168.18B
Gross Profit	164.32B	156.77B	139.37B	124.21B	96.69B	92.66B
EBITDA	34.81B	32.58B	32.12B	17.12B	26.91B	11.85B
Net Income	2.18B	1.25B	2.90B	-6.80B	1.44B	-10.08B
Balance Sheet
Total Assets	336.56B	312.23B	265.12B	261.86B	267.70B	263.99B
Cash, Cash Equivalents and Short-Term Investments	60.51B	71.54B	46.57B	50.70B	48.53B	39.41B
Total Debt	184.30B	177.94B	155.21B	156.56B	160.46B	173.47B
Total Liabilities	249.00B	225.12B	210.98B	211.16B	207.67B	226.18B
Stockholders Equity	77.77B	77.54B	44.95B	42.74B	50.30B	31.09B
Cash Flow
Free Cash Flow	18.98B	17.40B	16.92B	19.56B	18.09B	-1.90B
Operating Cash Flow	31.08B	28.81B	29.88B	28.78B	23.83B	3.42B
Investing Cash Flow	-30.83B	-21.61B	-13.58B	-8.79B	-3.52B	-12.92B
Financing Cash Flow	-4.63B	17.95B	-20.33B	-18.75B	-9.51B	15.89B

Colowide Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1733.00
• 50DMA: Negative
• 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 Negative. The current price of 1733 is above the 20-day moving average (MA) of 1730.75, above the 50-day MA of 1719.08, and below the 200-day MA of 1820.32, indicating a bearish trend. The MACD of -1.99 indicates Negative momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 54.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥131.05B	31.35	―	0.71%	5.15%	47.13%
9936	69 Neutral	¥193.73B	21.96	―	1.65%	9.59%	8.08%
7581	67 Neutral	¥263.54B	24.01	9.66%	0.56%	14.33%	36.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2695	58 Neutral	¥128.49B	35.27	―	0.61%	4.32%	11.78%
7616	54 Neutral	¥182.28B	83.83	―	0.29%	8.99%	61.95%
9861	53 Neutral	¥195.75B	46.74	―	0.69%	10.75%	-14.28%

Colowide Co., Ltd. Corporate Events

Colowide Co., Ltd. Reports Strong Q2 Financial Performance

Colowide Co., Ltd. reported a significant improvement in its financial performance for the second quarter of the fiscal year ending March 31, 2026, with a 7% increase in revenue and notable growth in business profit and EBITDA. The company’s strategic initiatives have led to a substantial rise in interim profit, reflecting a positive outlook for stakeholders and reinforcing its competitive position in the industry.