Breaking Down ZENKOKU HOSHO Co.,Ltd. Financial Health: Key Insights for Investors

ZENKOKU HOSHO Co., Ltd. is drawing investor attention after reporting annual revenue of ¥56.97 billion for the fiscal year ending March 31, 2025 - a 10.33% year-over-year increase that outpaces the Diversified Financial industry average of 6.7% - while net income rose to ¥32.09 billion (+11.44%), supported by an exceptional operating margin of 72.46% and an EBITDA margin of 74.21%; the company's market capitalization stands at ¥413.99 billion (Dec 12, 2025) with a P/E of 13.21 and a dividend yield of 4.52% (annual dividend ¥140.00), balanced against a conservative debt-to-equity ratio of 0.13, net cash of ¥92.40 billion, total assets of ¥476.61 billion and total liabilities of ¥248.61 billion, an Altman Z-Score of 2.3 and a Piotroski F-Score of 6, while strong cash generation-operating cash flow of ¥33.09 billion and free cash flow of ¥32.99 billion-plus revenue per employee of approximately ¥154.4 million and strategic acquisitions underline both efficiency and growth potential.

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Revenue Analysis

• FY ended Mar 31, 2025 revenue: ¥56.97 billion (↑10.33% vs FY2024)
• FY ended Mar 31, 2024 revenue: ¥51.64 billion (↑2.72% vs FY2023)
• TTM ended Sep 30, 2025 revenue growth: +10.39% (vs prior 12-month period)
• Revenue per employee: ≈ ¥154.4 million, indicating operational efficiency
• Market capitalization (Dec 12, 2025): ¥413.99 billion
• Revenue growth vs Diversified Financial industry average: 10.33% vs 6.7% (outperformance)
• Growth drivers include organic volume expansion and strategic acquisitions that expanded market presence

• Investor signal: market cap of ¥413.99 billion (Dec 12, 2025) reflects premium valuation relative to peers given higher-than-industry revenue growth.
• Operational benchmark: revenue per employee ≈ ¥154.4 million supports a narrative of scalable operations.
• M&A impact: targeted acquisitions have contributed to both immediate revenue uplift and longer-term cross-sell opportunities.

ZENKOKU HOSHO Co.,Ltd. (7164.T) Profitability Metrics

• Net income growth of 11.44% signals sustained earnings momentum year-over-year.
• Operating and EBITDA margins above 70% indicate a business model with low variable costs and high scalability.
• Profit margin above 50% shows efficient conversion of revenue into net profits.
• P/E of 13.21 combined with EPS of ¥235.95 suggests the market is valuing earnings conservatively relative to profitability.
• ROE at 13.8% reflects solid returns for shareholders without excessive leverage.

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Debt vs. Equity Structure

• Total assets: ¥476.61 billion (June 2025)
• Total liabilities: ¥248.61 billion
• Total debt (borrowings): ¥30.00 billion
• Equity (book value): ¥230.02 billion
• Net cash position: ¥92.40 billion
• Book value per share: ¥1,731.33
• Altman Z-Score: 2.3

• Low financial leverage (debt-to-equity ≈ 0.13) reduces interest-rate and refinancing risk.
• Substantial net cash (¥92.40bn) provides operational flexibility, capacity for buybacks/dividends, or opportunistic M&A.
• Equity-heavy structure with book value per share of ¥1,731.33 offers a tangible floor for downside valuation analyses.
• Liabilities-to-assets near 0.52 reflect that about half the asset base is financed by liabilities; monitor composition of those liabilities beyond interest-bearing debt.
• Altman Z-Score of 2.3 signals moderate distress risk - warrants watching earnings consistency and asset quality despite strong cash.

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Liquidity and Solvency

Key short-term liquidity and solvency metrics for ZENKOKU HOSHO Co.,Ltd. (7164.T) as of June 2025 demonstrate ample cash reserves, solid cash generation and a conservative balance between current assets and liabilities.

• Cash & cash equivalents: ¥122.40 billion
• Total current assets: ¥137.74 billion
• Working capital: ¥101.06 billion
• Operating cash flow: ¥33.09 billion
• Free cash flow: ¥32.99 billion
• Current ratio: ≈ 1.28
• Quick ratio: ≈ 1.28 (excluding inventory)
• Piotroski F-Score: 6

For broader context on strategy and corporate priorities, see Mission Statement, Vision, & Core Values (2026) of ZENKOKU HOSHO Co.,Ltd.

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Valuation Analysis

• Market capitalization: ¥413.99 billion - reflects the company's size on the Tokyo market.
• Price-to-Earnings (P/E) ratio: 13.21 - suggests shares are priced at a moderate multiple of earnings.
• Price-to-Book (P/B) ratio: 1.88 - indicates the stock trades at a premium to its book value.
• Dividend yield: 4.52% with an annual dividend of ¥140.00 per share - provides attractive cash return to shareholders.
• Earnings yield: ~7.74% - (EPS/Price) signaling potential undervaluation relative to earnings.
• Free Cash Flow yield: 8.04% - strong FCF generation relative to market value.
• Altman Z-Score: 2.3 - denotes moderate distress risk; below the safe zone but not in immediate distress territory.

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Risk Factors

• Altman Z-Score: 2.3 - indicates moderate bankruptcy risk (zone of concern between safe and distress).
• Piotroski F-Score: 6 - reflects moderate financial strength; evidence of profitability and efficiency but room for operational or balance-sheet improvement.
• Debt-to-Equity Ratio: 0.13 - low leverage on an equity basis, limiting upside from debt-financed growth but reducing interest-burden risk.
• Debt-to-Assets Ratio: ~0.52 - suggests over half of assets are financed by liabilities, implying moderate balance-sheet risk despite low debt/equity.
• Operating Margin: 72.46% and Net Profit Margin: 54.75% - very strong margins, but potentially vulnerable to market or regulatory shifts.
• Earnings Yield: ~7.74% - may indicate undervaluation or market skepticism about sustainability of earnings.

• Liquidity and working-capital sensitivity: high margins can mask short-term liquidity gaps if receivables, payables, or contingent liabilities shift.
• Sustainability risk: with exceptionally high margins, any competitive pressure, regulatory change, or cost inflation could materially compress profitability and affect market valuation.
• Leverage paradox: low debt-to-equity reduces insolvency risk from interest but combined with debt-to-assets ~0.52 suggests balance-sheet financing concentration that merits detailed review of asset quality and off-balance-sheet exposures.
• Market perception vs. fundamentals: the ~7.74% earnings yield points to either an attractive entry or existing skepticism - investigate investor sentiment, sector comparables, and recent guidance.
• Scorecard limitations: Altman Z and Piotroski provide useful signals but are not definitive-use alongside cash-flow analysis, covenant review, and scenario stress-testing.

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Growth Opportunities

• Revenue growth (FY ending 2025-03): 10.33% vs. Diversified Financial industry average 6.7% - outperformance signals stronger top-line expansion.
• Market capitalization change (1-year): +8.32% - reflects rising investor confidence and price appreciation.
• Expected EPS growth: +9.5% to ¥459 - indicates improving profitability on a per-share basis.
• Analyst price target: Nomura raised target to ¥3,250 - suggests consensus upside expectations.
• Dividend profile: annual dividend ¥140.00 per share; dividend yield 4.52% - attractive income component.
• Free cash flow yield: 8.04% - strong cash generation that can fund reinvestment, dividends, and potential buybacks.

• Investor appeal: combination of 4.52% yield and double-digit revenue/EPS growth supports both income and growth mandates.
• Balance-sheet and cash flow: high free cash flow yield underpins capacity for dividends and strategic investments.
• Valuation/market view: market cap +8.32% and raised price target are signals of market and analyst conviction.