Zenhoren Co., Ltd. (5845) AI Stock Analysis

• Market Cap: ¥23.02B
• Dividend Yield: 3.88%
• Average Volume (3M): 49.00K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.93
• Revenue Growth: 4.03%
• EPS Growth: 10.49%
• Country: JP
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 23.49
• Shares Outstanding: 26,572,200
• 10 Day Avg. Volume: 44,920
• 30 Day Avg. Volume: 48,996
• PEG Ratio: 0.00
• 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: ¥1,047.00
• Price Target Upside: 15.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,047.00 ▲(15.95% Upside)

Zenhoren Co., Ltd. scores well due to its strong financial performance, characterized by robust growth and profitability, and a solid balance sheet. The technical analysis indicates a positive trend, while the valuation is attractive with a reasonable P/E ratio and a strong dividend yield. The absence of earnings call data and corporate events does not impact the overall score significantly.

Zenhoren Co., Ltd. Business Overview & Revenue Model

Company Description

Zenhoren Co., Ltd. (5845) is a leading company specializing in the manufacturing and distribution of advanced electronic components and systems. Focused primarily on the sectors of telecommunications and consumer electronics, Zenhoren develops a range of products including semiconductors, circuit boards, and integrated systems that cater to both industrial and commercial applications. The company is committed to innovation and quality, positioning itself as a key player in the rapidly evolving tech landscape.

How the Company Makes Money

Zenhoren Co., Ltd. generates revenue through the sale of its electronic components and systems to a diverse clientele, including manufacturers in the telecommunications and consumer electronics sectors. The company employs a multi-channel revenue model that includes direct sales to original equipment manufacturers (OEMs), partnerships with distributors, and online sales through its e-commerce platform. Key revenue streams include bulk orders for semiconductors, long-term contracts for circuit boards, and licensing agreements for proprietary technologies. Additionally, Zenhoren benefits from strategic partnerships with leading tech firms, enhancing its market reach and enabling collaborative product development, which further contributes to its earnings.

Zenhoren Co., Ltd. Financial Statement Overview

Summary

Zenhoren Co., Ltd. demonstrates strong financial health with consistent revenue and profit growth, improved leverage and equity positions, and robust cash flow generation. The company is well-positioned for future growth, though it should continue monitoring its leverage to maintain financial stability.

Income Statement

Zenhoren Co., Ltd. shows strong revenue growth with a 2.78% increase from the previous year and a healthy gross profit margin of 70.67%. The net profit margin improved significantly to 6.28%, indicating enhanced profitability. EBIT and EBITDA margins are solid at 9.07% and 13.57%, respectively, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio decreased to 0.51, indicating improved leverage. Return on equity is strong at 32.30%, demonstrating effective use of equity. The equity ratio rose to 21.84%, showing a more stable financial position with increased equity relative to total assets.

Cash Flow

Zenhoren Co., Ltd. achieved a significant turnaround in cash flow with a strong free cash flow growth rate of 357.23% and robust free cash flow to net income ratio of 1.93. The operating cash flow to net income ratio is 2.16, indicating strong cash generation from operations.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	25.66B	24.51B	23.85B	21.70B
Gross Profit	17.15B	17.32B	15.59B	14.30B
EBITDA	3.30B	3.33B	3.07B	2.78B
Net Income	1.62B	1.54B	773.00M	1.39B
Balance Sheet
Total Assets	22.76B	21.79B	20.43B	24.72B
Cash, Cash Equivalents and Short-Term Investments	7.77B	5.20B	3.87B	9.49B
Total Debt	1.32B	2.45B	5.43B	7.59B
Total Liabilities	15.57B	17.03B	18.97B	21.74B
Stockholders Equity	7.19B	4.76B	1.45B	2.98B
Cash Flow
Free Cash Flow	2.88B	2.97B	-1.16B	2.46B
Operating Cash Flow	3.06B	3.32B	-808.00M	2.61B
Investing Cash Flow	-668.00M	-560.00M	2.05B	-146.00M
Financing Cash Flow	-328.00M	-1.22B	-4.46B	-2.17B

Zenhoren Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 903.00
• 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:5845, the sentiment is Neutral. The current price of 903 is below the 20-day moving average (MA) of 924.60, above the 50-day MA of 901.98, and above the 200-day MA of 832.15, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 51.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5845.

Zenhoren Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥15.81B	8.67	―	3.84%	7.07%	79.18%
5845	79 Outperform	¥23.02B	12.87	―	3.88%	4.03%	10.49%
7893	65 Neutral	¥28.01B	63.07	―	4.19%	3.42%	-120.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9216	60 Neutral	¥21.19B	72.30	―	5.13%	-3.81%	-82.38%
7320	56 Neutral	¥27.12B	15.29	―	0.62%	25.13%	-176.43%