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Zensho Holdings Co (7550) AI Stock Analysis

1 Followers
JP:7550

Zensho Holdings Co

(TSE/TYO:7550)

Select Model
Rating:60Neutral
Price Target:JPY 13,692.00â–²(12.28% 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 and margin growthStrong revenue expansion alongside materially higher operating margins indicates improving scale economics across the group. The combination supports stronger earnings capacity and suggests that operational leverage can continue contributing to performance over the next several quarters.
Negative Factors
High absolute debtDespite improved debt-to-equity, the rise in total debt leaves the company exposed to greater fixed financial obligations. A weaker trading environment could therefore constrain investment, expansion, or other capital-allocation choices while debt remains elevated.

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

-30%-20%-10%0%10%20%30%40%JP:7550+29.83%EWJ+10.02%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.06T
Dividend Yield
0.66%
Average Volume (3M)
579.98K
Price to Earnings (P/E)
37.9
Beta (1Y)
0.54
Revenue Growth
11.88%
EPS Growth
45.16%
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

Strong multi-year revenue growth and improving operating profitability support a solid score, but still-thin net margins, elevated absolute debt, and volatile/weak free-cash-flow conversion reduce overall quality.

Income Statement

74Positive

Balance Sheet

63Positive

Cash Flow

52Neutral
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 Price12195.00

Price Trends

50DMA11572.23Positive
100DMA10427.07Positive
200DMA9590.50Positive

Market Momentum

MACD320.64Negative
RSI53.83Neutral
STOCH67.07Neutral

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 12195.00 is above the 20-day moving average (MA) of 12075.50, above the 50-day MA of 11572.23, and above the 200-day MA of 9590.50, indicating a bullish trend. The MACD of 320.64 indicates Negative momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 67.07 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:2702JP:270277OutperformJPY 1.21T31.4513.01%0.64%2.34%8.58%
JP:9861JP:986169NeutralJPY 312.67B49.84―0.51%9.53%37.85%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:7550JP:755060NeutralJPY 2.06T37.9116.56%0.66%11.88%45.16%
JP:8153JP:815355NeutralJPY 139.83B34.12―0.83%6.32%10.13%
JP:3197JP:319754NeutralJPY 865.65B42.9010.08%0.67%11.29%22.50%
JP:3397JP:339742NeutralJPY 445.56B481.02―0.23%3.28%-79.18%

* Consumer Cyclical Sector Average

Performance Comparison

-20%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 12195.002774.5229.45%
JP:2702Mcdonalds Holdings Company Japan 8698.002541.2641.28%
JP:3197Skylark Holdings Co 3593.00626.6221.12%
JP:3397TORIDOLL Holdings Corporation4815.00342.317.65%
JP:8153MOS FOOD SERVICES, INC.4320.00394.7910.06%
JP:9861Yoshinoya Holdings Co., Ltd.4496.001497.2949.93%

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 pro...

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 billio...

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 11, 2026