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Colowide Co., Ltd. (JP:7616)
:7616
Japanese Market
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Colowide Co., Ltd. (7616) AI Stock Analysis

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JP:7616

Colowide Co., Ltd.

(7616)

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Neutral 55 (OpenAI - Gpt-5.6Sol)
Rating:55Neutral
Price Target:
¥2,060.00
▲(18.87% Upside)
Action:Reiterated
Date:08/19/26
The score is primarily driven by improving operations and steady cash generation, but capped by balance-sheet leverage and very thin net profitability. Technicals are moderately supportive, while valuation remains a key risk due to the very high P/E despite the high dividend yield.
Positive Factors
Steady Revenue Expansion
Sustained revenue expansion indicates broader customer demand and improving scale across the restaurant portfolio. Continued top-line growth can support purchasing efficiencies and help absorb corporate costs over the medium term.
Negative Factors
High Financial Leverage
Elevated leverage is a material structural risk for a restaurant operator exposed to demand and cost volatility. It reduces financial flexibility, increases refinancing dependence and can constrain investment if operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Expansion
Sustained revenue expansion indicates broader customer demand and improving scale across the restaurant portfolio. Continued top-line growth can support purchasing efficiencies and help absorb corporate costs over the medium term.
Read all positive factors

Colowide Co., Ltd. (7616) vs. iShares MSCI Japan ETF (EWJ)

Colowide Co., Ltd. Business Overview & Revenue Model

Company Description
Colowide Co., Ltd., established in Yokohama, Japan, in 1963, is a multifaceted enterprise primarily engaged in operating and franchising a wide array of restaurants both domestically and globally. The company's diverse activities extend significan...
How the Company Makes Money
Colowide makes money primarily by generating sales from food and beverage transactions at its restaurants. Its core revenue stream is restaurant operating revenue (customer dine-in and other in-store sales depending on brand format), where the com...

Colowide Co., Ltd. Financial Statement Overview

Summary
Operational recovery is evident with steady revenue growth and positive operating profit plus consistent free cash flow (TTM FCF ~¥17.6B). However, overall quality is constrained by very thin profitability (TTM net margin ~0.8%) and high leverage (debt-to-equity ~2.6x), which reduces resilience.
Income Statement
61
Positive
Balance Sheet
44
Neutral
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue317.85B300.09B269.16B241.28B220.83B175.63B
Gross Profit190.25B178.75B156.77B139.37B124.21B96.69B
EBITDA40.56B38.45B32.58B32.12B17.18B27.72B
Net Income2.58B2.23B1.25B2.90B-6.80B1.44B
Balance Sheet
Total Assets386.86B350.93B312.23B265.12B261.86B267.70B
Cash, Cash Equivalents and Short-Term Investments39.07B63.19B71.54B46.57B50.32B48.77B
Total Debt217.09B186.35B163.37B155.41B156.76B160.66B
Total Liabilities293.27B257.33B225.12B210.98B211.16B207.67B
Stockholders Equity84.27B84.23B77.54B44.95B42.74B50.30B
Cash Flow
Free Cash Flow17.59B16.51B17.40B16.92B19.56B18.09B
Operating Cash Flow30.52B28.71B28.81B29.88B28.78B23.83B
Investing Cash Flow-54.21B-30.32B-21.61B-13.58B-8.79B-3.52B
Financing Cash Flow-6.63B-7.21B17.95B-20.33B-18.75B-9.51B

Colowide Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1733.00
Price Trends
50DMA
1941.99
Positive
100DMA
1900.30
Positive
200DMA
1841.33
Positive
Market Momentum
MACD
32.17
Positive
RSI
60.85
Neutral
STOCH
80.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7616, the sentiment is Positive. The current price of 1733 is below the 20-day moving average (MA) of 2054.02, below the 50-day MA of 1941.99, and below the 200-day MA of 1841.33, indicating a bullish trend. The MACD of 32.17 indicates Positive momentum. The RSI at 60.85 is Neutral, neither overbought nor oversold. The STOCH value of 80.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7616.

Colowide 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
73
Outperform
¥354.80B29.029.75%0.55%16.06%12.26%
71
Outperform
¥351.92B67.600.56%4.40%-17.52%
70
Outperform
¥134.11B23.0810.63%1.35%6.72%18.77%
70
Outperform
¥1.87T36.5515.79%0.78%11.88%45.16%
63
Neutral
¥760.54B39.929.69%0.78%11.29%22.50%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
¥222.40B110.840.29%16.41%267.75%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7616
Colowide Co., Ltd.
2,101.00
124.55
6.30%
JP:8179
Royal Holdings Co
1,378.00
27.07
2.00%
JP:3197
Skylark Holdings Co
3,343.00
334.93
11.13%
JP:7581
Saizeriya Co
7,220.00
1,790.00
32.97%
JP:7550
Zensho Holdings Co
11,715.00
2,256.59
23.86%
JP:3387
create restaurants holdings inc.
772.00
-52.58
-6.38%

Colowide Co., Ltd. Corporate Events

Colowide Completes Restricted Share Disposal for Executive Compensation
Aug 12, 2026
Colowide Co., Ltd. has completed the payment procedures for the disposal of 44,000 treasury shares under a restricted share-based remuneration scheme authorized by its board in mid-July 2026. The common shares, disposed at 1,937.5 yen per share fo...
Colowide Posts Revenue Surge and Affirms Outlook as Profitability Improves
Aug 12, 2026
Colowide reported a strong topline performance for the three months ended June 30, 2026, with revenue rising 26.4% year on year to ¥85.0 billion, while business profit slipped 9.6% amid higher costs. IFRS operating profit increased 11.2%, EBI...
Colowide to Grant Treasury Shares as Restricted Stock to Senior Management
Jul 14, 2026
Colowide Co., Ltd. has approved the disposal of 44,000 treasury shares as restricted share-based remuneration, valued at a total of 85,250,000 yen and priced at 1,937.5 yen per share, to seven senior managers including directors, an executive offi...
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 19, 2026