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Zenhoren Co., Ltd. (JP:5845)
:5845
Japanese Market
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Zenhoren Co., Ltd. (5845) AI Stock Analysis

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JP:5845

Zenhoren Co., Ltd.

(5845)

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Outperform 80 (OpenAI - 5.2)
Rating:80Outperform
Price Target:
¥1,311.00
▲(31.10% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by strong financial performance—especially the substantially strengthened balance sheet and improved profitability—supported by clear bullish price trends above major moving averages. Valuation is reasonable and enhanced by a ~3.5% dividend yield, but historical volatility in profitability/cash flow and limited momentum/earnings-call detail keep the score from being higher.
Positive Factors
Balance-sheet strength
A near debt-free capital structure and a large equity base materially reduce refinancing and solvency risk. This durable improvement increases financial flexibility for capex, M&A, or payouts, and raises the company's ability to absorb cyclical shocks without external funding.
Negative Factors
Rapid deleveraging may be one-off
A swift move from high leverage to near zero can reflect non-recurring events (asset sales, equity issuance) rather than persistent operating improvement. If structural earnings or cash generation do not sustain this position, leverage could reappear, reducing long-term predictability.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
A near debt-free capital structure and a large equity base materially reduce refinancing and solvency risk. This durable improvement increases financial flexibility for capex, M&A, or payouts, and raises the company's ability to absorb cyclical shocks without external funding.
Read all positive factors

Zenhoren Co., Ltd. (5845) vs. iShares MSCI Japan ETF (EWJ)

Zenhoren Co., Ltd. Business Overview & Revenue Model

Company Description
Zenhoren Co.,Ltd., established in 2001 and headquartered in Naha, Japan, specializes in providing guarantee solutions for various liabilities across Japan. The company primarily offers rental payment guarantees for a diverse range of properties, i...

Zenhoren Co., Ltd. Financial Statement Overview

Summary
Fundamentals are strong overall: steady multi-year revenue growth and improved profitability (operating margin up to ~12.1% in 2026, net margin ~6.6%). The balance sheet is a major strength with leverage reduced to near zero by 2026 and equity expanded materially, improving resilience. The main constraint is historical volatility (notably the 2023 profitability dip and uneven cash flow), which tempers the score.
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2022
Income Statement
Total Revenue26.19B25.66B24.51B23.85B21.70B
Gross Profit17.37B16.12B16.25B14.46B13.12B
EBITDA3.42B3.30B3.33B3.07B2.78B
Net Income1.73B1.62B1.54B773.00M1.39B
Balance Sheet
Total Assets24.90B22.77B21.79B20.43B24.72B
Cash, Cash Equivalents and Short-Term Investments10.44B7.77B5.20B3.87B9.49B
Total Debt845.00M1.32B2.45B5.43B7.59B
Total Liabilities16.81B15.57B17.03B18.97B21.74B
Stockholders Equity8.10B7.19B4.76B1.45B2.98B
Cash Flow
Free Cash Flow5.12B3.02B3.25B-927.00M2.52B
Operating Cash Flow5.14B3.06B3.32B-808.00M2.61B
Investing Cash Flow-1.09B-668.00M-560.00M2.05B-146.00M
Financing Cash Flow-1.89B-328.00M-1.22B-4.46B-2.17B

Zenhoren Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1000.00
Price Trends
50DMA
1095.40
Positive
100DMA
1044.06
Positive
200DMA
997.36
Positive
Market Momentum
MACD
44.44
Positive
RSI
65.78
Neutral
STOCH
59.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5845, the sentiment is Positive. The current price of 1000 is below the 20-day moving average (MA) of 1214.25, below the 50-day MA of 1095.40, and above the 200-day MA of 997.36, indicating a bullish trend. The MACD of 44.44 indicates Positive momentum. The RSI at 65.78 is Neutral, neither overbought nor oversold. The STOCH value of 59.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5845.

Zenhoren Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
88
Outperform
¥39.29B11.991.75%24.99%146.68%
80
Outperform
¥31.74B17.353.49%2.15%1.53%
78
Outperform
¥22.16B15.171.34%15.28%20.07%
73
Outperform
¥331.69B15.2727.51%3.34%7.13%-9.94%
69
Neutral
¥53.85B13.583.33%7.36%21.55%
67
Neutral
¥12.69B14.591.08%17.53%23.69%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5845
Zenhoren Co., Ltd.
1,236.00
384.55
45.16%
JP:8876
Relo Group
2,161.00
439.47
25.53%
JP:4658
Nippon Air Conditioning Services Co., Ltd.
1,561.00
309.58
24.74%
JP:6044
SANKI SERVICE CORP.
1,930.00
280.64
17.02%
JP:6083
ERI Holdings Co., Ltd.
1,673.00
730.22
77.45%
JP:6086
Shin Maint Holdings Co.Ltd.
1,040.00
-67.35
-6.08%
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: Jul 30, 2026