ICZOOM Group, Inc. Class A (IZM) AI Stock Analysis

• Market Cap: $9.40M
• Dividend Yield: N/A
• Average Volume (3M): 14.26K
• Price to Earnings (P/E): 7.3
• Beta (1Y): >-0.01
• Revenue Growth: 5.12%
• EPS Growth: N/A
• Country: US
• Employees: 96
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): N/A
• Shares Outstanding: 8,188,610
• 10 Day Avg. Volume: 10,928
• 30 Day Avg. Volume: 14,255
• PEG Ratio: -0.18
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 11.58
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 8.22
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $0.86 ▼(-52.22% Downside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven primarily by improving financial performance (return to profitability and modest revenue growth) but held back by cash flow deterioration and persistently low margins. Technicals materially reduce the rating due to a strong downtrend across moving averages and negative MACD, while the low P/E provides some valuation support.

Positive Factors

Profitability Recovery

ICZOOM has moved from losses to a positive net margin and positive EBIT/EBITDA, indicating operational improvements and cost discipline. A sustained shift to profitability supports reinvestment in products and reduces dependency on external financing, improving long-term resilience.

Modest Revenue Growth

Steady top-line growth demonstrates recovering demand and market presence. Coupled with a business model selling to OEMs, distributors and long-term contracts, modest but consistent revenue growth provides a firmer base for scale, product development, and durable customer relationships.

Balanced Leverage & Improving ROE

Moderate leverage with debt roughly equal to equity and a rising ROE signals the company is using capital more effectively without excessive financial risk. This balance supports capacity to fund targeted investments while retaining financial flexibility over the medium term.

Negative Factors

Very Low Gross Margin

A structurally low gross margin constrains the company's ability to absorb input cost increases or invest in higher SG&A without eroding profits. Low product-level margins limit operating leverage and make sustainable profitability highly sensitive to pricing, mix, and supply costs.

Weak Cash Generation

A sharp decline in free cash flow and very low cash conversion indicate earnings are not translating into liquidity. Poor cash generation reduces capacity to fund R&D, capex, or working capital internally and raises reliance on external funding, heightening long-term financing risk.

Governance & Leadership Uncertainty

Active shareholder requisition to replace the CEO and board, plus a director resignation and EGM postponement, create material governance uncertainty. Potential management turnover and board changes can distract execution, delay strategy, and increase execution risk over coming months.

ICZOOM Group, Inc. Class A Business Overview & Revenue Model

Company Description

ICZOOM Group Inc., together with its subsidiaries, sells electronic component products to customers in the People's Republic of China. The company provides semiconductor products, including various integrated circuit, discretes, passive components, and optoelectronics; and equipment, tools, and other electronic component products comprising various electromechanical, maintenance, repair and operations, and various design tools. Its products are used by small and medium-sized enterprises in the consumer electronic industry, Internet of Things, automotive electronics, and industry control segment. The company sells its products through its online platform. It also offers temporary warehousing, logistic and shipping, and customs clearance. The company was formerly known as Horizon Business Intelligence Co., Limited and changed its name to ICZOOM Group Inc. in May 2018. The company was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

ICZOOM Group, Inc. generates revenue through multiple streams, primarily by selling its electronic components and systems to businesses across various industries. The core revenue model is based on direct sales of products to original equipment manufacturers (OEMs) and distributors, which are then incorporated into final consumer products. Additionally, the company may engage in long-term contracts with clients, providing a steady income stream. Strategic partnerships with technology firms and suppliers enhance its market reach and product offerings, further contributing to its earnings. The company's focus on research and development allows it to innovate and introduce new products, catering to emerging market demands, which is another significant factor in its revenue generation.

ICZOOM Group, Inc. Class A Financial Statement Overview

Summary

Fundamentals are improving but still mixed: modest revenue growth (+3.6%) and a shift to positive profitability (net margin to 0.6%, EBIT/EBITDA positive) support the score, while structurally low gross margin (3.3%) and a sharp free cash flow decline (-40%) with weak cash conversion (operating cash flow to net income 0.11) limit it.

Income Statement

ICZOOM Group has shown a modest revenue growth rate of 3.6% in the latest year, indicating a recovery from previous declines. The gross profit margin is relatively low at 3.3%, but there is a positive trend in net profit margin, which improved from negative to 0.6%. EBIT and EBITDA margins have also turned positive, reflecting better operational efficiency. However, the overall profitability remains constrained by low margins.

Balance Sheet

The company's debt-to-equity ratio is close to 1, indicating a balanced leverage position. Return on equity has improved to 7.7%, showing better utilization of equity. However, the equity ratio is not provided, which limits a full assessment of financial stability. The balance sheet shows moderate leverage, but the improvement in ROE is a positive sign.

Cash Flow

Free cash flow has decreased significantly by 40%, which is a concern. The operating cash flow to net income ratio is low at 0.11, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is nearly 1, indicating that free cash flow is closely aligned with net income, which is a positive aspect.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	187.05M	177.93M	214.41M	290.38M	279.36M
Gross Profit	6.11M	4.95M	5.29M	7.81M	8.02M
EBITDA	2.73M	-787.11K	1.45M	3.85M	4.85M
Net Income	1.19M	-2.27M	1.75M	2.57M	2.63M
Balance Sheet
Total Assets	41.24M	39.98M	88.18M	89.63M	87.51M
Cash, Cash Equivalents and Short-Term Investments	8.38M	2.45M	6.41M	1.14M	4.13M
Total Debt	15.26M	12.16M	14.92M	12.57M	16.94M
Total Liabilities	25.82M	24.59M	72.63M	79.14M	80.10M
Stockholders Equity	15.42M	15.38M	15.54M	10.49M	7.41M
Cash Flow
Free Cash Flow	2.71M	1.92M	-3.90M	106.66K	3.82M
Operating Cash Flow	2.75M	2.08M	-3.75M	138.55K	3.86M
Investing Cash Flow	-79.74K	-155.45K	-144.23K	863.72K	1.48M
Financing Cash Flow	2.91M	-2.25M	8.75M	-3.50M	1.59M

ICZOOM Group, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IZM, the sentiment is Negative. The current price of 1.8 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.45, and below the 200-day MA of 1.98, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 26.68 is Positive, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IZM.

ICZOOM Group, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNXN	74 Outperform	$1.54B	18.66	9.30%	1.02%	3.19%	-4.91%
SCSC	67 Neutral	$792.41M	11.35	8.16%	―	-4.88%	2.57%
CLMB	63 Neutral	$408.80M	20.40	20.27%	0.63%	51.09%	25.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NSIT	59 Neutral	$2.63B	17.11	9.20%	―	-6.69%	-51.74%
IZM	56 Neutral	$9.40M	7.34	7.76%	―	5.12%	―
TAIT	56 Neutral	$8.79M	-9.05	-4.12%	14.21%	―	―

ICZOOM Group, Inc. Class A Corporate Events

ICZOOM Group Postpones Extraordinary General Meeting to May 29, 2026

On January 30, 2026, ICZOOM Group Inc. announced that its board of directors has postponed the company’s previously scheduled extraordinary general meeting of shareholders from February 27, 2026 to May 29, 2026 and reset the record date for voting eligibility to May 1, 2026. The board attributed the change to the impact of the upcoming Chinese New Year holiday on staffing as well as the need to allocate management attention and internal resources to preparing interim financial statements, and advised investors not to rely on earlier meeting information, signaling a revised timetable for shareholder decision-making and related proxy processes.

The most recent analyst rating on (IZM) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on ICZOOM Group, Inc. Class A stock, see the IZM Stock Forecast page.

ICZOOM Group Independent Director Qi (Jeff) He Resigns; Board Launches Search for Successor

On January 13, 2026, ICZOOM Group Inc. announced that independent director Qi (Jeff) He resigned from the board and from his roles on the Audit, Compensation, and Nominating Committees, effective immediately, citing personal reasons and affirming that the decision did not stem from any disagreement with the company’s operations, policies, or practices. The company has initiated a search to fill the resulting board and committee vacancy, a move that will be important for maintaining its governance structure and committee independence expected of a U.S.-listed foreign private issuer, though no details have yet been provided on potential successors or the expected timeline for an appointment.

The most recent analyst rating on (IZM) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on ICZOOM Group, Inc. Class A stock, see the IZM Stock Forecast page.

ICZOOM Group Faces Shareholder-Driven Leadership Shake-Up with February 2026 EGM

On December 23, 2025, ICZOOM Group Inc. announced that it has called an extraordinary general meeting of shareholders for February 27, 2026, to be held via teleconference, following a requisition by shareholder Forerunner Universal Limited. The agenda includes proposed removal of Chief Executive Officer and board chairman Lei Xia from all positions, the removal of three additional directors, the election of two new directors nominated by Forerunner, the invalidation of board resolutions adopted on November 11 and November 24, 2025 regarding management changes involving Duanrong Liu and Hantao Cui, and the appointment of Duanrong Liu as an authorized signatory. The record date for voting eligibility has been set as February 2, 2026, underscoring that ICZOOM is now facing a shareholder-driven effort to overhaul its leadership and unwind recent board actions, signaling a potential shift in control and governance that could materially reshape the company’s strategic direction once shareholders vote on these resolutions.

The most recent analyst rating on (IZM) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ICZOOM Group, Inc. Class A stock, see the IZM Stock Forecast page.