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Colowide Co., Ltd. (7616) AI Stock Analysis

JP:7616

Colowide Co., Ltd.

(TSE/TYO:7616)

Select Model
Rating:62Neutral
Price Target:JPY 2,368.00â–²(6.00% Upside)
Action:downgraded
Date:08/19/26

Colowide Co. earns a moderate score anchored by reliable, robust cash flow generation and stable long-term technical momentum. However, its significant debt load, extremely thin profit margins, and highly expensive valuation multiple (P/E over 104x) severely limit its upside potential and introduce structural risk.

Positive Factors
Revenue GrowthThe multi-year increase in revenue shows that Colowide has expanded its operating base and maintained a constructive top-line trajectory. Continued growth provides a broader sales platform across its restaurant brands and can support better utilization of shared purchasing, distribution, and corporate capabilities.
Negative Factors
High LeverageDebt is high relative to the equity base and has risen versus FY2025 and FY2026 annual levels, leaving Colowide less financially flexible. Elevated leverage can constrain investment and capital allocation while making sustained cash generation and refinancing capacity more important to maintaining stability.

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

-10%0%10%20%30%40%JP:7616+34.27%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 237.49B
Dividend Yield
0.22%
Average Volume (3M)
489.98K
Price to Earnings (P/E)
117.5
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 Co. exhibits robust top-line growth and highly dependable operating cash flows. However, this strength is offset by a heavily leveraged balance sheet (2.57x debt-to-equity) and razor-thin net profit margins of 0.8%.

Income Statement

68Positive

Balance Sheet

45Neutral

Cash Flow

82Very Positive
Financial statement breakdown
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 SentimentPositive
Last Price2234.00

Price Trends

50DMA2076.84Positive
100DMA1992.71Positive
200DMA1919.11Positive

Market Momentum

MACD43.41Negative
RSI63.40Neutral
STOCH46.73Neutral

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 2234.00 is above the 20-day moving average (MA) of 2110.67, above the 50-day MA of 2076.84, and above the 200-day MA of 1919.11, indicating a bullish trend. The MACD of 43.41 indicates Negative momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 46.73 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

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7616 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7550JP:755074OutperformJPY 1.98T39.0516.56%0.64%11.88%45.16%
JP:7581JP:758170OutperformJPY 400.68B36.528.59%0.43%17.44%-1.16%
JP:8179JP:817970OutperformJPY 138.01B23.7010.80%1.24%6.72%18.77%
JP:7616JP:761662NeutralJPY 237.44B117.52―0.22%16.41%267.75%
JP:3387JP:338757NeutralJPY 360.53B80.81―0.60%3.22%-25.86%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:3197JP:319754NeutralJPY 826.29B43.3710.08%0.66%11.29%22.50%

* General Sector Average

Performance Comparison

-20%0%20%40%60%JP:7616JP:8179JP:3197JP:7581JP:7550JP:3387Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7616 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7616Colowide Co., Ltd.2234.00566.7633.99%
JP:8179Royal Holdings Co 1414.00148.0911.70%
JP:3197Skylark Holdings Co 3632.00865.1031.27%
JP:7581Saizeriya Co 8210.003194.4363.69%
JP:7550Zensho Holdings Co 12560.003031.3931.81%
JP:3387create restaurants holdings inc.796.0065.528.97%

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 for a...

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%, EBITDA...

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