Colowide Co., Ltd. (7616) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

McDonald's Holdings Co. (Japan) Ltd.

FOOD & LIFE COMPANIES LTD.

TORIDOLL Holdings Corp.

Saizeriya Co., Ltd.

Zensho Holdings Co., Ltd.

Colowide Co., Ltd.

Skylark Holdings Co., Ltd.

Yoshinoya Holdings Co., Ltd.

Ichibanya Co., Ltd.

create restaurants holdings, inc.

ATOM Corp.

Why is Colowide Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.40%

The company has been able to generate a Return on Capital Employed (avg) of 3.40% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.66% and Operating profit at 26.15% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.64% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.66% and Operating profit at 26.15% over the last 5 years

The company has declared negative results in Mar'2026 after 2 consecutive positive quarters

INTEREST(HY) At JPY 2,478 MM has Grown at 93.59%
OPERATING CASH FLOW(Y) Lowest at JPY 28,714 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 23.68 times

With ROCE of 6.46%, it has a expensive valuation with a 1.67 Enterprise value to Capital Employed

Over the past year, while the stock has generated a return of -3.74%, its profits have fallen by -15.2%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Colowide Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Colowide Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Colowide Co., Ltd.

-100.0%

-0.59

20.02%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.66%

EBIT Growth (5y)

26.15%

EBIT to Interest (avg)

0.83

Debt to EBITDA (avg)

3.97

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

1.24

Tax Ratio

52.79%

Dividend Payout Ratio

67.16%

Pledged Shares

Institutional Holding

ROCE (avg)

3.40%

ROE (avg)

3.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.45

EV to EBIT

25.82

EV to EBITDA

8.13

EV to Capital Employed

1.67

EV to Sales

1.06

PEG Ratio

Dividend Yield

ROCE (Latest)

6.46%

ROE (Latest)

3.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.96% (YoY

NET PROFIT(9M)

Higher at JPY 1,748 MM

NET SALES(Q)

Highest at JPY 82,234 MM

OPERATING PROFIT(Q)

Highest at JPY 11,300 MM

-22What is not working for the Company

INTEREST(HY)

At JPY 2,478 MM has Grown at 93.59%

OPERATING CASH FLOW(Y)

Lowest at JPY 28,714 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 23.68 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 17.09 times

PRE-TAX PROFIT(Q)

Lowest at JPY -600 MM

NET PROFIT(Q)

Lowest at JPY -1,460 MM

EPS(Q)

Lowest at JPY -13.72

Here's what is working for Colowide Co., Ltd.

Net Sales

Highest at JPY 82,234 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 82,234 MM has Grown at 14.8%

over average net sales of the previous four periods of JPY 71,635 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 11,300 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Raw Material Cost

Fallen by -2.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 8,349 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 8,349 MM has Grown at 27.1%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Colowide Co., Ltd.

Interest

At JPY 2,478 MM has Grown at 93.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -600 MM has Fallen at -136.19%

over average net sales of the previous four periods of JPY 1,658 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -1,460 MM has Fallen at -319.47%

over average net sales of the previous four periods of JPY 665.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 28,714 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Pre-Tax Profit

Lowest at JPY -600 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -1,460 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -13.72

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 23.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 17.09 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio