Balance Sheet StrengthExtremely low leverage and an 87% equity ratio give the company durable financial flexibility. This reduces default and refinancing risk, supports capital allocation for capex or dividends, and allows the firm to withstand industry downturns without eroding strategic options.

High Gross MarginA 44.3% gross margin indicates strong product-level profitability and likely pricing power or efficient cost of goods sold. High gross margins create a structural buffer to cover SG&A, absorb input cost volatility, and sustain operating profit even if top-line growth is uneven.

Cash Conversion RatiosOCF/Net Income of 0.83 and FCF/Net Income of 0.65 show the business converts recorded earnings into cash at a reasonable rate. This underpins capacity to fund operations, service capital needs and support distributions without relying heavily on external financing.

Bears Say

Declining RevenueA double-digit year-over-year revenue decline signals loss of demand, pricing pressure, or market share erosion. Sustained top-line contraction will strain operating leverage, reduce scale benefits, and make it harder to sustain margins, investment or dividend policies long term.

Sharp Cash Flow DeteriorationLarge year-over-year drops in OCF and FCF materially weaken the company’s internal funding. Even with reasonable conversion ratios, such steep declines constrain reinvestment capacity, increase vulnerability to shocks, and could force cuts to capex or distributions if persistent.

Weakened Profitability & ReturnsFalling EBIT/EBITDA and a 7.3% net margin alongside a low ROE indicate subpar efficiency in converting equity into profits. Over time this limits shareholder returns, reduces reinvestment firepower, and signals the need for structural cost or strategy changes to restore competitiveness.

9986 FAQ

What was Zaoh Company, Ltd.’s price range in the past 12 months?

Zaoh Company, Ltd. lowest stock price was ¥2300.00 and its highest was ¥2653.00 in the past 12 months.

What is Zaoh Company, Ltd.’s market cap?

Zaoh Company, Ltd.’s market cap is ¥15.16B.

When is Zaoh Company, Ltd.’s upcoming earnings report date?

Zaoh Company, Ltd.’s upcoming earnings report date is Apr 23, 2026 which is in 34 days.

How were Zaoh Company, Ltd.’s earnings last quarter?

Zaoh Company, Ltd. released its earnings results on Feb 09, 2026. The company reported ¥37 earnings per share for the quarter, beating the consensus estimate of N/A by ¥37.

Is Zaoh Company, Ltd. overvalued?

According to Wall Street analysts Zaoh Company, Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Zaoh Company, Ltd. pay dividends?

Zaoh Company, Ltd. pays a Semiannually dividend of ¥50 which represents an annual dividend yield of 4%. See more information on Zaoh Company, Ltd. dividends here

What is Zaoh Company, Ltd.’s EPS estimate?

Zaoh Company, Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Zaoh Company, Ltd. have?

Zaoh Company, Ltd. has 6,266,000 shares outstanding.

What happened to Zaoh Company, Ltd.’s price movement after its last earnings report?

Zaoh Company, Ltd. reported an EPS of ¥37 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.391%.

Which hedge fund is a major shareholder of Zaoh Company, Ltd.?

Currently, no hedge funds are holding shares in JP:9986

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Zaoh Company, Ltd.

ZAOH Company, Ltd. imports and sells machines for anti-pollution and cleaning in Japan. The company is also involved in the sale of machines and devices for construction, manufacturing, measurement, and transportation; and sale of metalworking oils and related products. Its products include sweepers, vacuum cleaners, floor scrubbers, high pressure cleaners, carpet scrubbers and cleaners, steam cleaners, alkali ionized machines, and other products. The company was incorporated in 1956 and is headquartered in Tokyo, Japan.