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Zensho Holdings Co (7550) AI Stock Analysis

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JP:7550

Zensho Holdings Co

(TSE/TYO:7550)

Select Model
Rating:76Outperform
Price Target:JPY 14,357.00▲(14.35% Upside)
Action:reiterated
Date:11/12/26

Zensho Holdings is primarily buoyed by exceptional technical momentum and robust financial health, evidenced by a consistent multi-month uptrend, strong revenue expansion, and improving profit margins. However, its premium growth-priced valuation (P/E of 38.7) and lower free cash flow conversion resulting from heavy expansion investments slightly weigh down the overall score.

Positive Factors
Revenue GrowthStrong revenue expansion indicates that Zensho has continued to increase the scale of its restaurant platform and customer sales over several years. Sustained growth across its operating network can support purchasing efficiency, brand investment, and broader earnings capacity if execution remains consistent.
Negative Factors
High Absolute DebtAlthough relative leverage has improved, the substantial increase in absolute debt leaves Zensho exposed to higher financing commitments and reduces flexibility if restaurant demand weakens. Elevated borrowing may constrain future capital allocation and make a downturn more difficult to manage without slowing expansion.

Zensho Holdings Co (7550) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%50%JP:7550+43.54%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.01T
Dividend Yield
0.64%
Average Volume (3M)
561.41K
Price to Earnings (P/E)
39.0
Beta (1Y)
0.53
Revenue Growth
12.44%
EPS Growth
51.49%
Country
Japan
Employees
20,626
Sector
Consumer Cyclical
Sector Strength
61
Industry
Restaurants

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 develop...

How the Company Makes Money

Zensho primarily makes money by selling food and beverages to customers through its directly operated restaurants, with revenue recognized at the point of sale from dine-in, takeout, and (where offered) delivery orders. A second revenue stream comes...

Zensho Holdings Co Financial Statement Overview

Summary

Robust top-line growth and expanding profit margins are paired with a significantly de-leveraged balance sheet. While operating cash generation is strong, heavy capital expenditures for ongoing expansion limit current free cash flow conversion.

Income Statement

88Very Positive

Balance Sheet

78Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.26T1.26T1.14T965.78B779.96B658.50B
Gross Profit686.44B686.44B622.21B524.05B414.87B347.62B
EBITDA129.50B129.50B117.20B87.52B58.36B58.84B
Net Income45.81B45.81B39.29B30.69B13.27B13.87B
Balance Sheet
Total Assets960.36B960.36B813.11B748.06B469.56B427.17B
Cash, Cash Equivalents and Short-Term Investments143.06B143.06B91.73B102.08B64.69B42.41B
Total Debt395.78B395.78B365.70B339.99B252.88B230.06B
Total Liabilities618.91B618.91B572.73B533.40B353.72B322.68B
Stockholders Equity340.96B340.96B240.06B214.38B115.63B103.32B
Cash Flow
Free Cash Flow023.17B17.43B45.87B22.09B17.92B
Operating Cash Flow0101.18B78.95B85.98B53.08B45.43B
Investing Cash Flow0-78.09B-66.45B-125.35B-35.16B-31.16B
Financing Cash Flow019.82B-16.27B54.59B1.80B-12.37B

Zensho Holdings Co Technical Analysis

Technical Analysis SentimentPositive
Last Price12555.00

Price Trends

50DMA11653.30Positive
100DMA10614.22Positive
200DMA9671.63Positive

Market Momentum

MACD330.83Negative
RSI56.24Neutral
STOCH64.07Neutral

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 12555.00 is above the 20-day moving average (MA) of 12290.00, above the 50-day MA of 11653.30, and above the 200-day MA of 9671.63, indicating a bullish trend. The MACD of 330.83 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 64.07 is Neutral, 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

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:7550 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7550JP:755076OutperformJPY 2.01T39.0316.56%0.64%12.44%51.49%
JP:2702JP:270274OutperformJPY 1.24T33.1612.86%0.60%>-0.01%7.55%
JP:3197JP:319774OutperformJPY 835.62B42.0210.08%0.68%9.51%10.42%
JP:9861JP:986169NeutralJPY 303.36B51.86―0.49%9.53%37.85%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:8153JP:815355NeutralJPY 136.90B35.30―0.81%6.32%10.13%
JP:3397JP:339749NeutralJPY 432.82B496.20―0.22%3.28%-79.18%

* Consumer Cyclical Sector Average

Performance Comparison

0%20%40%60%JP:7550JP:2702JP:3197JP:3397JP:8153JP:9861Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7550 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7550Zensho Holdings Co 12555.003656.3441.09%
JP:2702Mcdonalds Holdings Company Japan 9308.003181.0051.92%
JP:3197Skylark Holdings Co 3519.00318.409.95%
JP:3397TORIDOLL Holdings Corporation4967.00579.0913.20%
JP:8153MOS FOOD SERVICES, INC.4470.00445.6711.07%
JP:9861Yoshinoya Holdings Co., Ltd.4678.001663.3955.18%

Zensho Holdings Co Corporate Events

Zensho Announces 170,000-Share Treasury Disposal for Compensation Plan

Nov 12, 2026

Zensho Holdings said its board resolved on Nov. 12, 2026, to dispose of 170,000 treasury shares on Nov. 27 at ¥12,705 each, totaling ¥2.15985 billion, to Japan Custody Bank’s Trust Account E. The disposal accompanies an additional contribution to the...

Zensho Revises Full-Year Consolidated Forecasts

Nov 12, 2026

Zensho Holdings Co., Ltd. is listed on the Tokyo Stock Exchange Prime Market and reports Global Sukiya, Global Hamasushi and Global Prepared Food segments. The company said these segments mainly drove performance during the first half of the fiscal y...

Zensho Holdings Reports Six-Month Profit Growth

Nov 12, 2026

Zensho Holdings reported six-month net sales of ¥688.975 billion for the period ended September 30, 2026, up 17.1% from a year earlier. Operating profit rose 39.7% to ¥56.482 billion, ordinary profit increased 35.9% to ¥53.390 billion, and profit att...

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: Nov 12, 2026