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

• Market Cap: ¥204.86B
• Dividend Yield: 0.26%
• Average Volume (3M): 385.03K
• Price to Earnings (P/E): 291.8
• Beta (1Y): 0.26
• Revenue Growth: 10.35%
• EPS Growth: -69.33%
• Country: JP
• Employees: 4,502
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Restaurants
• EPS (TTM): 4.56
• Shares Outstanding: 106,453,545
• 10 Day Avg. Volume: 410,440
• 30 Day Avg. Volume: 385,026
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,891.00
• Price Target Upside: -2.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ¥1,891.00 ▼(-2.20% Downside)

Colowide Co., Ltd. exhibits strong financial performance with robust cash flow and improving revenue. However, the high debt levels and volatile profitability margins are notable risks. The stock's technical indicators suggest neutral momentum, and its valuation is challenged by an extremely high P/E ratio and low dividend yield. These factors combine to create a moderate investment risk profile.

Colowide Co., Ltd. Business Overview & Revenue Model

Company Description

Colowide Co., Ltd. is a Japanese company primarily engaged in the operation of restaurants and food service businesses. It operates a variety of dining establishments, ranging from traditional Japanese cuisine to Western-style eateries, under multiple brands. The company is known for its diverse offerings, including izakayas (Japanese-style pubs), yakiniku (Japanese BBQ), sushi chains, and more. In addition to its restaurant operations, Colowide Co., Ltd. is involved in food production and distribution, supporting its wide network of food service outlets.

How the Company Makes Money

Colowide Co., Ltd. generates revenue primarily through its extensive network of restaurants and dining establishments, which form the core of its business operations. The company earns money by serving a wide variety of food and beverages to customers, with revenue coming from both dine-in and take-out services. Additionally, Colowide Co., Ltd. has diversified its revenue streams by engaging in food production and distribution, providing products to its restaurants and potentially other clients. The company's earnings are further supported by strategic partnerships and collaborations that enhance its brand presence and operational efficiency. Key factors contributing to Colowide's revenue include its ability to attract a broad customer base through diverse culinary offerings and its commitment to maintaining high-quality food standards.

Colowide Co., Ltd. Financial Statement Overview

Summary

Colowide Co., Ltd. has shown a strong recovery in revenue and operational metrics over the past years, with improved gross profit margins. However, net profit margins remain volatile. The high debt-to-equity ratio is a concern, indicating significant leverage, but the company's equity position is strengthening. Strong cash flow generation indicates good liquidity management, though debt risks need monitoring.

Income Statement

Colowide Co., Ltd. has shown a strong recovery in revenue over the past years, growing from 168,181 million JPY in 2021 to 269,156 million JPY in 2025. The gross profit margin has improved, indicating better cost management. However, net profit margins have been volatile, with a dip in 2023 due to a negative net income. The EBIT and EBITDA margins have been on a positive trajectory, with EBITDA showing consistent growth, highlighting operational improvements.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which indicates significant leverage and potential risk. Total liabilities have grown, but stockholders' equity has also increased, suggesting a strengthening financial position. The equity ratio has improved, showing a gradual increase in equity relative to total assets, but the company's reliance on debt remains a concern.

Cash Flow

Operating cash flow has been strong, consistently positive, and growing, which is a positive indicator of cash generation ability. Free cash flow has also been positive, except for 2021, and shows growth in recent years. The operating cash flow to net income ratio suggests healthy cash flow relative to earnings, though free cash flow growth has been moderate.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	269.16B	241.28B	220.83B	175.63B	168.18B
Gross Profit	156.77B	139.37B	124.21B	96.69B	92.66B
EBITDA	32.58B	32.12B	17.12B	28.51B	11.85B
Net Income	1.25B	2.90B	-6.80B	1.44B	-10.08B
Balance Sheet
Total Assets	312.23B	265.12B	261.86B	267.70B	263.99B
Cash, Cash Equivalents and Short-Term Investments	71.54B	46.85B	50.70B	49.45B	39.41B
Total Debt	163.17B	155.21B	156.56B	160.46B	173.47B
Total Liabilities	225.12B	210.98B	211.16B	207.67B	226.18B
Stockholders Equity	77.54B	44.95B	42.74B	50.30B	31.44B
Cash Flow
Free Cash Flow	17.40B	16.92B	19.56B	18.09B	-1.90B
Operating Cash Flow	28.81B	29.88B	28.78B	23.83B	3.42B
Investing Cash Flow	-21.61B	-13.58B	-8.79B	-3.52B	-12.92B
Financing Cash Flow	17.95B	-20.33B	-18.75B	-9.51B	15.89B

Colowide Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1933.50
• 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:7616, the sentiment is Positive. The current price of 1933.5 is below the 20-day moving average (MA) of 1952.53, above the 50-day MA of 1904.82, and above the 200-day MA of 1775.73, indicating a neutral trend. The MACD of 15.72 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 10.21 is Positive, 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
7581	74 Outperform	$265.98B	24.87	9.78%	0.46%	16.42%	39.76%
2695	71 Outperform	¥150.69B	122.49		0.53%	4.82%	-79.12%
8153	70 Outperform	¥123.03B	34.71		0.75%	4.32%	29.02%
Sector *	67 Neutral	¥277.48B	14.88	6.81%	2.50%	5.07%	-22.68%
9936	67 Neutral	¥235.37B	25.67		1.26%	10.74%	14.69%
7616	58 Neutral	¥204.86B	291.82		0.26%	10.35%	-69.33%
9861	54 Neutral	¥217.54B	56.34		0.59%	9.92%	-26.57%

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.

Colowide Co., Ltd. Announces Disposal of Treasury Shares for Management Incentives

Colowide Co., Ltd. announced the disposal of 23,500 treasury shares as part of a restricted share remuneration plan aimed at securing talented management and promoting value sharing with shareholders. This move is intended to motivate directors and executive officers by granting them shares, with restrictions on transfer lifted upon retirement or resignation under valid reasons, thereby aligning their interests with the company’s long-term goals.

Colowide Co., Ltd. Nominates New Director

Colowide Co., Ltd. has announced the provisional nomination of Eriko Shiraishi as a new outside director, pending approval at the upcoming Annual General Meeting of Shareholders. This move is part of the company’s strategic efforts to strengthen its board with experienced professionals, potentially enhancing its governance and oversight capabilities.

Colowide Acquires Seagrass Holdco to Boost Global Expansion

Colowide Co., Ltd. has resolved to acquire all shares of Seagrass Holdco Pty Ltd., a leading steakhouse operator in Australia and the UAE, making it a wholly owned subsidiary. This acquisition aligns with Colowide’s ‘Vision 2030’ plan to expand its international presence and strengthen its supply chain, particularly in Asia, leveraging Seagrass’s established relationships and brand recognition to enhance business growth and profitability.