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

• Market Cap: $20.07M
• Dividend Yield: N/A
• Average Volume (3M): 14.26K
• Price to Earnings (P/E): 15.7
• Beta (1Y): -0.12
• Revenue Growth: 5.12%
• EPS Growth: N/A
• Country: US
• Employees: 96
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): -0.22
• 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: 1.25
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 13.16
• 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: 58 Neutral
• Price Target: $1.50 ▼(-16.67% Downside)

The score is driven primarily by improving fundamentals (return to positive margins and modest revenue growth) but capped by weak cash-flow trends (notably the free cash flow decline). Technical indicators also point to a pressured longer-term trend, while valuation (P/E ~14) is supportive but not strong enough to offset the cash flow and trend risks.

Positive Factors

Improving Profitability

Transitioning from negative to positive net and operating margins indicates structural operational improvements. Sustained positive margins support reinvestment in R&D and product development, improving long-term competitiveness and the firm's ability to service leverage and fund growth initiatives.

Modest Revenue Recovery

A return to revenue growth after prior declines signals stabilizing end-market demand and execution on sales channels. Even modest, persistent top-line improvement can compound operational leverage over months, enabling margin expansion and more predictable planning for suppliers and OEM customers.

Balanced Leverage with Improving ROE

Moderate leverage combined with a rising return on equity suggests the company is using capital more effectively without extreme indebtedness. This balance supports strategic investments and working capital needs while limiting refinancing pressure over the medium term, if trends persist.

Negative Factors

Very Low Gross Margin

A gross margin near 3% leaves little buffer to cover SG&A, R&D, or unexpected cost increases, making earnings highly sensitive to input-cost fluctuations and pricing pressure. Structurally low product margins constrain capital allocation and long-term profitability unless addressed by product mix or pricing improvements.

Weak Cash Generation

A sharp FCF decline and an OCF-to-net-income ratio of 0.11 indicate earnings are not converting to cash efficiently. Over months this undermines ability to fund capex, reduce debt, or absorb shocks, increasing reliance on external financing and limiting strategic flexibility.

Governance and Leadership Instability

A shareholder requisition to remove the CEO and multiple directors, plus prior unauthorized filings and executive removals, creates prolonged governance risk. Leadership turnover can disrupt strategy execution, supplier/customer relationships, and investor confidence, affecting long-term operational continuity.

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

ICZOOM Group shows signs of recovery with improved profitability and revenue growth. The balance sheet reflects moderate leverage with an improving return on equity. However, cash flow challenges persist, as indicated by the significant decline in free cash flow. Overall, the company is on a positive trajectory but needs to address cash flow issues to ensure sustainable growth.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	187.05M	187.05M	177.93M	214.41M	290.38M	279.36M
Gross Profit	6.14M	6.11M	4.95M	5.29M	7.81M	8.02M
EBITDA	1.90M	2.73M	-787.11K	1.45M	3.85M	4.85M
Net Income	1.19M	1.19M	-2.27M	1.75M	2.57M	2.63M
Balance Sheet
Total Assets	41.24M	41.24M	39.98M	88.18M	89.63M	87.51M
Cash, Cash Equivalents and Short-Term Investments	8.38M	8.38M	2.45M	6.41M	1.14M	4.13M
Total Debt	15.26M	15.26M	12.16M	14.92M	12.57M	16.94M
Total Liabilities	25.82M	25.82M	24.59M	72.63M	79.14M	80.10M
Stockholders Equity	15.42M	15.42M	15.38M	15.54M	10.49M	7.41M
Cash Flow
Free Cash Flow	2.71M	2.71M	1.92M	-3.90M	106.66K	3.82M
Operating Cash Flow	2.75M	2.75M	2.08M	-3.75M	138.55K	3.86M
Investing Cash Flow	-79.74K	-79.74K	-155.45K	-144.23K	863.72K	1.48M
Financing Cash Flow	2.91M	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: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 below the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.41, and below the 200-day MA of 2.09, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 7.72 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	73 Outperform	$1.47B	17.94	9.30%	1.02%	3.19%	-4.91%
CLMB	73 Outperform	$564.13M	26.33	21.27%	0.63%	51.09%	25.86%
SCSC	64 Neutral	$905.35M	12.86	8.11%	―	-4.88%	2.57%
NSIT	62 Neutral	$2.59B	19.52	8.51%	―	-6.69%	-51.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IZM	58 Neutral	$20.07M	15.67	7.76%	―	5.12%	―
TAIT	53 Neutral	$8.85M	-9.11	-4.12%	14.21%	―	―

ICZOOM Group, Inc. Class A Corporate Events

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.

ICZOOM Group Inc. Removes Director Amid Unauthorized SEC Filing

ICZOOM Group Inc., a company based in Shenzhen, China, announced significant changes in its leadership on November 24, 2025. The board of directors resolved to remove Ms. Duanrong Liu from her position as a director, effective immediately, following her earlier removal as Chief Operating Officer on November 11, 2025. The company discovered that Ms. Liu filed an unauthorized Form 6-K with the SEC, which contained inaccurate and misleading information about the company’s governance and operations. ICZOOM is actively investigating the incident and plans to take necessary actions to protect its interests and stakeholders.

The most recent analyst rating on (IZM) stock is a Hold with a $2.50 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 Governance Challenges Amid Executive Changes

ICZOOM Group, Inc., a company involved in corporate governance and operational management, recently faced significant internal governance issues. On November 13, 2025, the company’s COO, Duanrong Liu, raised concerns about the legality of recent executive appointments and removals, specifically the appointment of Ms. Hantao Cui as Chief Strategy Officer and Director, and the removal of Liu’s position as COO, which were not formally approved by the Board. Additionally, Liu highlighted that Ms. Cui, being the spouse of Mr. Lei Xia, does not meet the independence criteria for directors as per Nasdaq and Chinese regulations. Liu continues to fulfill COO responsibilities until a formal successor is appointed, emphasizing the need for proper governance to protect shareholder interests.

The most recent analyst rating on (IZM) stock is a Hold with a $2.50 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 Inc. Announces Executive Leadership Changes

On November 11, 2025, ICZOOM Group Inc. made significant changes to its executive team by removing Ms. Duanrong Liu from her role as Chief Operating Officer and appointing Ms. Hantao Cui as the new Chief Strategy Officer and a director. Ms. Cui, who is the spouse of the company’s CEO, Lei Xia, brings extensive experience in executive leadership and strategy from her previous roles, including her tenure as CEO of Matrix Science & Technology and various marketing positions. This leadership change is expected to influence the company’s strategic direction and strengthen its market positioning.

The most recent analyst rating on (IZM) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on ICZOOM Group, Inc. Class A stock, see the IZM Stock Forecast page.