Zensho Holdings Co., Ltd.
Zensho Holdings Co., Ltd. Fundamental Analysis
Zensho Holdings Co., Ltd. (7550.T) shows moderate financial fundamentals with a PE ratio of 34.15, profit margin of 3.32%, and ROE of 15.36%. The company generates $1225.9B in annual revenue with strong year-over-year growth of 17.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 7550.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7550.T struggles to generate sufficient returns from assets.
Valuation Score
Weak7550.T trades at a premium to fair value.
Growth Score
Excellent7550.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent7550.T maintains a strong and stable balance sheet.
Profitability Score
Weak7550.T struggles to sustain strong margins.
Key Financial Metrics
Is 7550.T Expensive or Cheap?
P/E Ratio
7550.T trades at 34.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 7550.T's PEG of 4.25 indicates potential overvaluation.
Price to Book
The market values Zensho Holdings Co., Ltd. at 4.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.15 times EBITDA. This is generally considered low.
How Well Does 7550.T Make Money?
Net Profit Margin
For every $100 in sales, Zensho Holdings Co., Ltd. keeps $3.32 as profit after all expenses.
Operating Margin
Core operations generate 6.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.36 in profit for every $100 of shareholder equity.
ROA
Zensho Holdings Co., Ltd. generates $4.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zensho Holdings Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Zensho Holdings Co., Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
7550.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.99
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 7550.T Stacks Against Its Sector Peers
| Metric | 7550.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.15 | 24.43 | Worse (Expensive) |
| ROE | 15.36% | 1154.00% | Weak |
| Net Margin | 3.32% | -609.00% (disorted) | Weak |
| Debt/Equity | 0.99 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.69 | 2.61 | Neutral |
| ROA | 4.31% | -8416.00% (disorted) | Weak |
7550.T outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zensho Holdings Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.66%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
212.30%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
123.88%
Industry Style: Cyclical, Growth, Discretionary
High Growth