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Zensho Holdings Co
(7550)
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Rating:60Neutral
Price Target:
¥12,175.00
▲(36.63% Upside)
Action:Reiterated
Date:08/11/26
The score is primarily supported by improving financial performance (accelerating revenue growth and higher operating margins), but is held back by weaker cash-flow quality and leverage. Technically, the trend is strong but appears overextended (very high RSI/Stoch), while valuation is a meaningful headwind due to a high P/E and low dividend yield.
Positive Factors
Revenue Growth
Sustained, accelerating revenue growth from ¥595B to ¥1,264B demonstrates expanding scale across channels and brands. Over the next 2–6 months this durable top-line momentum supports higher absolute cash flows, franchise fee upside and continued operating leverage as the store base scales.
Negative Factors
High Absolute Debt
Despite a lower D/E ratio, total debt remains very large and has risen in absolute terms to ¥396B. High absolute leverage increases interest and refinancing risk, constrains capital allocation, and can limit the firm's ability to invest or weather cyclical downturns over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained, accelerating revenue growth from ¥595B to ¥1,264B demonstrates expanding scale across channels and brands. Over the next 2–6 months this durable top-line momentum supports higher absolute cash flows, franchise fee upside and continued operating leverage as the store base scales.
Read all positive factors
Zensho Holdings Co (7550) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.85T
Dividend Yield0.64%
Average Volume (3M)475.44K
Price to Earnings (P/E)36.2
Beta (1Y)0.56
Revenue Growth11.88%
EPS Growth45.16%
CountryJP
Employees20,626
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)275.86
Shares Outstanding160,733,230
10 Day Avg. Volume593,820
30 Day Avg. Volume475,443
Financial Highlights & Ratios
PEG Ratio2.26
Price to Book (P/B)4.21
Price to Sales (P/S)1.14
P/FCF Ratio62.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)342.23
Revenue Forecast (FY)¥1.39T
Zensho Holdings Co Business Overview & Revenue Model
Company Description
Zensho Holdings Co., Ltd. operates as a comprehensive Japanese enterprise overseeing an extensive array of restaurant chains, both domestically and internationally. Beyond its primary foodservice endeavors, the company also specializes in the deve...
How the Company Makes Money
Zensho Holdings makes money mainly by selling food and beverages through its restaurant network. Revenue is generated from company-operated stores where the group records customer sales directly, and from franchised stores where it earns franchise...
Zensho Holdings Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
52
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.26T | 1.14T | 965.78B | 779.96B | 658.50B |
| Gross Profit | 686.44B | 622.21B | 524.05B | 414.87B | 347.62B |
| EBITDA | 129.50B | 117.20B | 87.52B | 58.36B | 58.84B |
| Net Income | 45.81B | 39.29B | 30.69B | 13.27B | 13.87B |
Balance Sheet | |||||
| Total Assets | 960.36B | 813.11B | 748.06B | 469.56B | 427.17B |
| Cash, Cash Equivalents and Short-Term Investments | 143.06B | 91.73B | 102.08B | 64.69B | 42.41B |
| Total Debt | 395.78B | 365.70B | 339.99B | 252.88B | 230.06B |
| Total Liabilities | 618.91B | 572.73B | 533.40B | 353.72B | 322.68B |
| Stockholders Equity | 340.96B | 240.06B | 214.38B | 115.63B | 103.32B |
Cash Flow | |||||
| Free Cash Flow | 23.17B | 17.43B | 45.87B | 22.09B | 17.92B |
| Operating Cash Flow | 101.18B | 78.95B | 85.98B | 53.08B | 45.43B |
| Investing Cash Flow | -78.09B | -66.45B | -125.35B | -35.16B | -31.16B |
| Financing Cash Flow | 19.82B | -16.27B | 54.59B | 1.80B | -12.37B |
Zensho Holdings Co Technical Analysis
Positive
8911.00
Price Trends
9537.80
Positive
8923.28
Positive
9034.41
Positive
Market Momentum
640.65
Positive
73.50
Negative
84.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7550, the sentiment is Positive. The current price of 8911 is below the 20-day moving average (MA) of 10981.30, below the 50-day MA of 9537.80, and below the 200-day MA of 9034.41, indicating a bullish trend. The MACD of 640.65 indicates Positive momentum. The RSI at 73.50 is Negative, neither overbought nor oversold. The STOCH value of 84.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7550.
Zensho Holdings Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥1.09T | 29.32 | 13.54% | 0.71% | 2.34% | 8.58% | |
69 Neutral | ¥122.57B | 31.55 | ― | 0.70% | 6.32% | 10.13% | |
64 Neutral | ¥249.49B | 43.32 | ― | 0.61% | 10.76% | 48.44% | |
63 Neutral | ¥772.37B | 39.92 | 9.69% | 0.78% | 11.29% | 22.50% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥1.85T | 36.21 | 15.79% | 0.78% | 11.88% | 45.16% | |
55 Neutral | ¥378.68B | 429.77 | ― | 0.24% | 3.28% | -79.18% |
* Consumer Cyclical Sector Average
JP:7550
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Zensho Holdings Co Corporate Events
Zensho Raises FY2027 Profit Outlook on Strong Global Restaurant Performance
Aug 7, 2026
Zensho Holdings has revised its consolidated forecasts for the fiscal year ending March 31, 2027, reflecting stronger-than-expected performance in the first quarter, particularly in its Global Sukiya and Global Hamasushi segments. While net sales ...
Zensho Holdings Lifts Earnings Outlook After Profit Surge in First Quarter
Aug 7, 2026
Zensho Holdings Co. reported strong results for the first quarter of the fiscal year ending March 31, 2027, with net sales rising 16.8% year on year to ¥324.8 billion and profit attributable to owners of parent jumping 89.2% to ¥15.2 bil...
Zensho Holdings to Book ¥10.6 Billion Dividend Income from U.S. Subsidiary
Jul 27, 2026
Zensho Holdings Co., Ltd. said it expects to receive a dividend of 65 million U.S. dollars from its consolidated subsidiary Zensho USA Corporation by the end of August 2026. The payment underscores the contribution of the U.S. operations to the pa...
Zensho Weighs Lowering Investment Unit to Broaden Investor Base
May 12, 2026
Zensho Holdings has stated that it views lowering its minimum investment unit as an effective way to broaden participation by a more diverse range of investors and enhance the liquidity of its shares. The company’s current investment unit le...
Zensho Holdings Lifts FY2026 Dividend and Signals Higher Payout for FY2027
May 12, 2026
Zensho Holdings has approved an increase in its year-end dividend for the fiscal year ended March 31, 2026, raising the common stock payout to ¥40 per share from the previously forecast ¥35, lifting the total dividend to approximately &#...
Zensho Holdings Delivers Double-Digit Sales Growth and Lifts Dividend on Strong FY2026 Results
May 12, 2026
Zensho Holdings reported consolidated net sales of ¥1.26 trillion for the fiscal year ended March 31, 2026, up 11.2% year on year, with operating profit rising 8.4% to ¥81.4 billion and profit attributable to owners of parent climbing 16...
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.