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

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Colowide Co., Ltd.

(TSE/TYO:7616)

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Rating:69Neutral

Price Target:JPY 2,543.00▲(5.28% Upside)

Action:reiterated

Date:11/13/26

The overall score is buoyed by excellent technical momentum and solid cash flow generation, reflecting strong market enthusiasm. However, further upside may be constrained by the stock's exorbitant earnings multiple, extremely thin net profitability, and substantial debt load.

Positive Factors

Diversified Restaurant PlatformA multi-brand platform across company-owned and franchised restaurants gives Colowide several routes to reach customers and participate in different dining occasions. Centralized procurement and food preparation can support consistency and operating scale as the network expands over the next several quarters.

Negative Factors

High LeverageLeverage remains high relative to equity even after recent improvement, leaving the company more exposed to refinancing needs and earnings volatility. Elevated debt can constrain capital allocation and reduce resilience if restaurant profitability weakens, making sustained cash generation important to balance-sheet improvement.

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

Market Cap: JPY 252.74B
Dividend Yield: 0.22%
Average Volume (3M): 489.72K
Price to Earnings (P/E): 142.4
Beta (1Y): 0.04
Revenue Growth: 19.33%
EPS Growth: -17.39%
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...

Colowide Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and robust free cash flow are significantly offset by razor-thin net margins and a highly leveraged balance sheet.

Income Statement

68Positive

Balance Sheet

45Neutral

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	332.25B	300.09B	269.16B	241.28B	220.83B	175.63B
Gross Profit	199.43B	178.75B	156.77B	139.37B	124.21B	96.69B
EBITDA	42.90B	38.45B	32.58B	32.12B	17.18B	27.72B
Net Income	1.80B	2.23B	1.25B	2.90B	-6.80B	1.44B
Balance Sheet
Total Assets	377.42B	350.93B	312.23B	265.12B	261.86B	267.70B
Cash, Cash Equivalents and Short-Term Investments	29.05B	63.19B	71.54B	46.57B	50.32B	48.77B
Total Debt	207.03B	186.35B	163.37B	155.41B	156.76B	160.66B
Total Liabilities	284.27B	257.33B	225.12B	210.98B	211.16B	207.67B
Stockholders Equity	84.15B	84.23B	77.54B	44.95B	42.74B	50.30B
Cash Flow
Free Cash Flow	20.88B	16.51B	17.40B	16.92B	19.56B	18.09B
Operating Cash Flow	31.67B	28.71B	28.81B	29.88B	28.78B	23.83B
Investing Cash Flow	-52.19B	-30.32B	-21.61B	-13.58B	-8.79B	-3.52B
Financing Cash Flow	-11.12B	-7.21B	17.95B	-20.33B	-18.75B	-9.51B

Colowide Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2415.50

Price Trends

50DMA2125.46Positive

100DMA2040.33Positive

200DMA1944.80Positive

Market Momentum

MACD77.27Negative

RSI63.46Neutral

STOCH72.60Neutral

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 2415.50 is above the 20-day moving average (MA) of 2250.10, above the 50-day MA of 2125.46, and above the 200-day MA of 1944.80, indicating a bullish trend. The MACD of 77.27 indicates Negative momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 72.60 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7550	70Outperform	JPY 1.98T	38.18	16.56%	0.60%	12.44%	51.49%
JP:7581	70Outperform	JPY 418.25B	39.50	8.59%	0.39%	17.44%	-1.16%
JP:8179	69Neutral	JPY 146.89B	25.70	10.80%	1.14%	6.72%	18.77%
JP:7616	69Neutral	JPY 246.79B	142.42	―	0.22%	19.33%	-17.39%
JP:3197	64Neutral	JPY 800.58B	43.63	9.87%	0.66%	9.51%	10.42%
JP:3387	60Neutral	JPY 376.83B	88.63	―	0.54%	3.22%	-25.86%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7616 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7616	Colowide Co., Ltd.	2415.50	700.88	40.88%
JP:8179	Royal Holdings Co	1533.00	232.00	17.83%
JP:3197	Skylark Holdings Co	3648.00	459.31	14.40%
JP:7581	Saizeriya Co	8880.00	3784.82	74.28%
JP:7550	Zensho Holdings Co	13270.00	4523.12	51.71%
JP:3387	create restaurants holdings inc.	873.00	125.63	16.81%

Colowide Co., Ltd. Corporate Events

Colowide Interim Financial Results Presentation, November 2026

Nov 13, 2026

Colowide Co., Ltd.’s November 2026 presentation covers financial results for the interim period of the fiscal year ending March 31, 2027. It includes consolidated IFRS financial highlights, progress of activities, and an interim-period financial summ...

Colowide Revenue Jumps as Interim Profit Drops

Nov 6, 2026

Colowide Co., Ltd. is a Japanese food-service company operating restaurant businesses and related dining services, serving the domestic restaurant market through its portfolio of dining brands.For the six months ended September 30, 2026, revenue rose...

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 13, 2026

Colowide Co., Ltd. AI Stock Analysis