Zensho Holdings Co., Ltd. (7550.T) stock analysis

In our weekly check, Zensho Holdings Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 5.

About Zensho Holdings Co., Ltd.

Zensho Holdings Co., Ltd. is a Consumer Cyclical company (Restaurants) based in Japan, listed on JPX as 7550.T.

What our checks show for 7550.T

Red flags

• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• The net margin is only 3.6%: little room if costs rise.
• The dividend takes 4320% of profit: little cushion if profit falls.
• The stock has fallen as much as 81% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 7.4 years.

Warning signs

• Free cash flow is only 1.8% of revenue.
• The price swings a lot: 35.2% annual volatility. Expect large ups and downs.

Strengths

• The net margin rose by 1.5 points over 5 years, to 3.6%.
• The gross margin is 54.3% and has risen by 1.5 points: pricing power is holding.
• Operating cash flow is 2.21x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 20.7% a year over the next years.
• Revenue grew 17.5% a year over the last 3 years.
• Earnings per share grew 46.7% a year over the last 3 years.

Next earnings report: 2026-11-12

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Questions

What grade does Zensho Holdings Co., Ltd. (7550.T) have?

In our weekly check, Zensho Holdings Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 7550.T stock?

This week's biggest flags for Zensho Holdings Co., Ltd.: Weak interest cover, Thin margins, Dividend stretched. In total 7 of 25 checks show a warning or a red flag.

What does Zensho Holdings Co., Ltd. do?

Zensho Holdings Co., Ltd. is a Consumer Cyclical company (Restaurants) based in Japan, listed on JPX as 7550.T.

When does Zensho Holdings Co., Ltd. report earnings next?

The next earnings report is expected on 2026-11-12. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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