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Colowide Co., Ltd. (JP:7616)
:7616
Japanese Market
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Colowide Co., Ltd. (7616) AI Stock Analysis

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JP:7616

Colowide Co., Ltd.

(7616)

Rating:63Neutral
Price Target:
¥2,111.00
▲(11.13% Upside)
Colowide Co., Ltd. has a solid financial performance with strong cash flow management and improving income statement metrics. However, the high leverage on the balance sheet and low net profitability are concerns. Technical analysis shows a positive trend, but the stock appears overvalued with a very high P/E ratio and low dividend yield. These factors combined result in a moderate overall stock score.

Colowide Co., Ltd. (7616) vs. iShares MSCI Japan ETF (EWJ)

Colowide Co., Ltd. Business Overview & Revenue Model

Company DescriptionColowide Co.,Ltd., together with its subsidiaries, operates and franchises a chain of restaurants in Japan and internationally. The company also manufactures and sells pastries, baked pastries, and chocolates; manufactures, processes, and sells various foodstuffs; and processes and wholesales tuna and other sea foods. In addition, it is involved in the sale and distribution of various foodstuffs; management of store deployment; and development and operation of wireless telecommunications technology. Further, the company develops and sells Menu-kun, a self-ordering system for the food service industry; sells cigarettes and liquors; and manages karaoke rooms. It operates the Wolfgang Puck café and express restaurant chain; and Izakaya, a Japanese-style pub. The company operates its restaurants under the GYU-KAKU, Shabu-Shabu ONYASAI, KAPPA SUSHI, and Freshness Burger brand names. It operates 1,508 direct management stores and 1,201 franchise chains. Colowide Co.,Ltd. was founded in 1963 and is headquartered in Yokohama, Japan.
How the Company Makes MoneyColowide 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. 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
70
Positive
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
60
Neutral
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue273.04B269.16B241.28B220.83B175.63B168.18B
Gross Profit160.25B156.77B139.37B124.21B96.69B92.66B
EBITDA33.28B32.58B32.12B17.12B26.91B11.85B
Net Income702.00M1.25B2.90B-6.80B1.44B-10.08B
Balance Sheet
Total Assets340.58B312.23B265.12B261.86B267.70B263.99B
Cash, Cash Equivalents and Short-Term Investments68.57B71.54B46.57B50.70B48.53B39.41B
Total Debt190.60B163.17B155.21B156.56B160.46B173.47B
Total Liabilities254.16B225.12B210.98B211.16B207.67B226.18B
Stockholders Equity76.81B77.54B44.95B42.74B50.30B31.09B
Cash Flow
Free Cash Flow19.34B17.40B16.92B19.56B18.09B-1.90B
Operating Cash Flow30.12B28.81B29.88B28.78B23.83B3.42B
Investing Cash Flow-29.04B-21.61B-13.58B-8.79B-3.52B-12.92B
Financing Cash Flow29.41B17.95B-20.33B-18.75B-9.51B15.89B

Colowide Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1899.50
Price Trends
50DMA
1932.05
Negative
100DMA
1886.91
Positive
200DMA
1797.49
Positive
Market Momentum
MACD
-4.56
Positive
RSI
45.49
Neutral
STOCH
13.75
Positive
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 1899.5 is below the 20-day moving average (MA) of 1948.12, below the 50-day MA of 1932.05, and above the 200-day MA of 1797.49, indicating a neutral trend. The MACD of -4.56 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.75 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥234.77B25.60
1.28%10.74%14.69%
63
Neutral
¥201.89B287.59
0.26%10.35%-69.33%
61
Neutral
$17.92B12.81-2.97%2.98%1.30%-14.28%
$1.71B23.979.78%
71
Outperform
¥155.45B126.36
0.51%4.82%-79.12%
70
Outperform
¥123.65B34.88
0.75%4.32%29.02%
53
Neutral
¥200.92B52.03
0.64%9.92%-26.57%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7616
Colowide Co., Ltd.
1,924.00
244.29
14.54%
SZYCF
Saizeriya Co
35.69
0.72
2.06%
JP:2695
Kura Sushi, Inc.
3,945.00
356.30
9.93%
JP:8153
MOS FOOD SERVICES, INC.
4,010.00
628.75
18.60%
JP:9861
Yoshinoya Holdings Co., Ltd.
3,078.00
-52.15
-1.67%
JP:9936
Ohsho Food Service Corp.
3,895.00
1,176.29
43.27%

Colowide Co., Ltd. Corporate Events

Colowide Completes Treasury Share Disposal for Remuneration
Aug 12, 2025

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
Aug 8, 2025

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
Jul 15, 2025

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
May 13, 2025

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
May 13, 2025

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.

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 29, 2025