Fact based stock research
Zensho Holdings (TSE:7550)

JP3429300001

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Zensho Holdings stock research in summary

zensho.co.jp

ANALYSIS: With an Obermatt Combined Rank of 52 (better than 52% compared with investment alternatives), Zensho Holdings (Restaurants, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Zensho Holdings are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives), and are riskily financed (Safety Rank of 38, which means above-average debt burdens) but show above-average growth (Growth Rank of 81). ...read more

RECOMMENDATION: A Combined Rank of 52, is a buy recommendation based on Zensho Holdings's financial characteristics. As the company Zensho Holdings shows low value with an Obermatt Value Rank of 31 (69% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 81% of comparable companies (Obermatt Growth Rank is 81). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 38 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Zensho Holdings, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	31
Growth Rank	81
Safety Rank	38
Combined Rank	52

Country	Japan
Industry	Restaurants
Index
Size class	Large

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Zensho Holdings

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	45	15	27	31
GROWTH
GROWTH	55	83	100	81
SAFETY
SAFETY	14	18	51	38
SENTIMENT
SENTIMENT	21	23	78	^new
360° VIEW
360° VIEW	18	16	96	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Zensho Holdings is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	45	15	27	31
GROWTH
GROWTH	55	83	100	81
SAFETY
SAFETY	14	18	51	38
COMBINED
COMBINED	24	27	78	52

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Zensho Holdings the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Zensho Holdings shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Zensho Holdings. Price-to-Sales is 47 which means that the stock price compared with what market professionals expect for future profits is higher than 53% of comparable companies, indicating a low value concerning Zensho Holdings's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 15, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Zensho Holdings. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 28 and Dividend Yield, which is lower than 63% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Zensho Holdings's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Zensho Holdings? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Zensho Holdings? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Zensho Holdings may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76	37	49	47
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	26	8	34	28
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	45	17	25	15
DIVIDEND YIELD
DIVIDEND YIELD	30	28	31	37
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	45	15	27	31

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Zensho Holdings; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 81 (better than 81% compared with alternatives) for 2025, Zensho Holdings shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Zensho Holdings. Sales Growth has a rank of 80 which means that currently, professionals expect the company to grow more than 80% of its competitors. Both Profit Growth, with a rank of 64, and Stock Returns, with a rank of 79, are also above average. But Capital Growth only has a rank of 31, which means that, currently, professionals expect the company to grow its invested capital less than 69% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 81, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	9	89	54	80
PROFIT GROWTH
PROFIT GROWTH	100	88	86	64
CAPITAL GROWTH
CAPITAL GROWTH	50	1	98	31
STOCK RETURNS
STOCK RETURNS	45	99	83	79
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	55	83	100	81

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Zensho Holdings.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 38 (better than 38% compared with alternatives), the company Zensho Holdings has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Zensho Holdings is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Zensho Holdings and the other two below average. Refinancing is at 51, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 51% of its competitors. But Leverage is high with a rank of 22, meaning the company has an above-average debt-to-equity ratio. It has more debt than 78% of its competitors. Liquidity is also on the riskier side with a rank of 40, meaning the company generates less profit to service its debt than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 38 (worse than 62% compared with alternatives), Zensho Holdings has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Zensho Holdings are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Zensho Holdings and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	12	16	24	22
REFINANCING
REFINANCING	19	25	47	51
LIQUIDITY
LIQUIDITY	32	38	53	40
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	14	18	51	38

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Zensho Holdings and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	25	97	^new
OPINIONS CHANGE
OPINIONS CHANGE	50	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	16	69	91	^new
MARKET PULSE
MARKET PULSE	9	5	14	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	21	23	78	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Zensho Holdings.
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