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Colowide Co., Ltd. (7616) AI Stock Analysis
Colowide Co., Ltd.
(TSE/TYO:7616)
The overall score is constrained by a highly leveraged balance sheet and an extremely expensive valuation, with a P/E over 104 and negligible dividend yield. Positively, the company demonstrates strong cash flow generation and a recovering revenue trend, which provides some buffer against financial risk. Technicals show a neutral to slightly bullish long-term picture, but short-term momentum is lackluster.
Colowide Co., Ltd. (7616) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 237.49B
- Dividend Yield
- 0.22%
- Average Volume (3M)
- 486.22K
- Price to Earnings (P/E)
- 118.6
- Beta (1Y)
- -0.03
- Revenue Growth
- 16.41%
- EPS Growth
- 267.75%
- Country
- Japan
- Employees
- 5,907
- Sector
- General
- Sector Strength
- 55
- Industry
- Restaurants
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 significantly...
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 compan...
Colowide Co., Ltd. Financial Statement Overview
Summary
Colowide shows strong revenue growth and excellent cash flow generation, with free cash flow significantly exceeding net income. Gross margins are expanding to nearly 60%. However, the balance sheet is highly leveraged with a debt-to-equity ratio of 2.6x, and net profit margins remain razor-thin at under 1%, indicating high financial risk despite operational momentum.
Income Statement
68PositiveBalance Sheet
45NeutralCash Flow
72Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 317.85B | 300.09B | 269.16B | 241.28B | 220.83B | 175.63B |
| Gross Profit | 190.25B | 178.75B | 156.77B | 139.37B | 124.21B | 96.69B |
| EBITDA | 40.56B | 38.45B | 32.58B | 32.12B | 17.18B | 27.72B |
| Net Income | 2.58B | 2.23B | 1.25B | 2.90B | -6.80B | 1.44B |
Balance Sheet | ||||||
| Total Assets | 386.86B | 350.93B | 312.23B | 265.12B | 261.86B | 267.70B |
| Cash, Cash Equivalents and Short-Term Investments | 39.07B | 63.19B | 71.54B | 46.57B | 50.32B | 48.77B |
| Total Debt | 217.09B | 186.35B | 163.37B | 155.41B | 156.76B | 160.66B |
| Total Liabilities | 293.27B | 257.33B | 225.12B | 210.98B | 211.16B | 207.67B |
| Stockholders Equity | 84.27B | 84.23B | 77.54B | 44.95B | 42.74B | 50.30B |
Cash Flow | ||||||
| Free Cash Flow | 17.59B | 16.51B | 17.40B | 16.92B | 19.56B | 18.09B |
| Operating Cash Flow | 30.52B | 28.71B | 28.81B | 29.88B | 28.78B | 23.83B |
| Investing Cash Flow | -54.21B | -30.32B | -21.61B | -13.58B | -8.79B | -3.52B |
| Financing Cash Flow | -6.63B | -7.21B | 17.95B | -20.33B | -18.75B | -9.51B |
Colowide Co., Ltd. Technical Analysis
Price Trends
Market Momentum
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 2254.00 is above the 20-day moving average (MA) of 2123.62, above the 50-day MA of 2081.72, and above the 200-day MA of 1921.59, indicating a bullish trend. The MACD of 47.60 indicates Negative momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 68.19 is Neutral, 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
JP:755074Outperform
JP:758170Outperform
JP:817970Outperform
JP:319763Neutral
JP:338757Neutral- JP:761656Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:7550 | 74Outperform | JPY 1.98T | 38.38 | 16.56% | 0.65% | 11.88% | 45.16% |
| JP:7581 | 70Outperform | JPY 400.68B | 36.30 | 8.59% | 0.43% | 17.44% | -1.16% |
| JP:8179 | 70Outperform | JPY 138.01B | 23.70 | 10.80% | 1.24% | 6.72% | 18.77% |
| JP:3197 | 63Neutral | JPY 826.29B | 43.41 | 10.08% | 0.66% | 11.29% | 22.50% |
| JP:3387 | 57Neutral | JPY 360.53B | 80.91 | ― | 0.60% | 3.22% | -25.86% |
| JP:7616 | 56Neutral | JPY 237.44B | 118.57 | ― | 0.22% | 16.41% | 267.75% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7616 | Colowide Co., Ltd. | 2254.00 | 590.25 | 35.48% | |
| JP:8179 | Royal Holdings Co | 1414.00 | 156.99 | 12.49% | |
| JP:3197 | Skylark Holdings Co | 3636.00 | 836.34 | 29.87% | |
| JP:7581 | Saizeriya Co | 8160.00 | 3015.06 | 58.60% | |
| JP:7550 | Zensho Holdings Co | 12345.00 | 2941.39 | 31.28% | |
| JP:3387 | create restaurants holdings inc. | 797.00 | 54.60 | 7.35% |
Colowide Co., Ltd. Corporate Events
Colowide Completes Restricted Share Disposal for Executive Compensation
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 for a...
Colowide Posts Revenue Surge and Affirms Outlook as Profitability Improves
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%, EBITDA...
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