ZOZO (3092) AI Stock Analysis

• Market Cap: ¥1.21T
• Dividend Yield: 2.72%
• Average Volume (3M): 2.73M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.49
• Revenue Growth: 6.80%
• EPS Growth: 0.62%
• Country: JP
• Employees: 1,740
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 10.89
• Shares Outstanding: 892,032,350
• 10 Day Avg. Volume: 3,362,440
• 30 Day Avg. Volume: 2,732,720
• PEG Ratio: 9.27
• Price to Book (P/B): 12.93
• Price to Sales (P/S): 5.99
• P/FCF Ratio: 23.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,481.08
• Price Target Upside: 8.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,422.00 ▲(4.60% Upside)

ZOZO's overall stock score is driven primarily by its strong financial performance, which is the most significant factor. The company's robust revenue and profit growth, efficient use of equity, and solid cash generation capability position it well for future growth. However, the technical analysis indicates a neutral to slightly bearish outlook, with the stock trading below key moving averages and lacking bullish momentum. The valuation is somewhat high, with a P/E ratio that may limit upside potential, though the dividend yield provides some income support.

ZOZO Business Overview & Revenue Model

Company Description

ZOZO, Inc. operates online shopping Websites in Japan and internationally. It operates ZOZOTOWN a fashion online shopping website; WEAR, a fashion app; Multi-Size platform to purchases and sells fashion merchandise of various brands; ZOZOUSED, a Website for secondhand/vintage apparel; and PayPay mall, an online shopping mall. In addition, it engages in the advertisement business. The company was formerly known as Start Today Co., Ltd. and changed its name to ZOZO, Inc. in October 2018. ZOZO, Inc. was founded in 1998 and is headquartered in Chiba, Japan. ZOZO, Inc. is a subsidiary of Z Holdings Corporation.

How the Company Makes Money

ZOZO generates revenue primarily through its e-commerce platform, ZOZOTOWN, by charging a commission on sales made by third-party brands and retailers listed on its site. The company earns money by selling its own private label products, which typically have higher profit margins. Additionally, ZOZO benefits from advertising revenue through sponsored listings and promotions on its platform. Strategic partnerships with brands and retailers also enhance its revenue potential, as these collaborations often include co-branded marketing efforts and exclusive product launches. Seasonal sales events and promotions further drive traffic and sales, contributing to the company's earnings.

ZOZO Financial Statement Overview

Summary

ZOZO demonstrates a robust financial performance across income, balance sheet, and cash flow statements. The company exhibits strong revenue and profit growth, efficient use of equity, and a solid cash generation capability, positioning it well for future growth. While the high ROE reflects strong profitability, it may also signal challenges in maintaining such high returns going forward. Overall, ZOZO is well-equipped to capitalize on opportunities in the specialty retail sector, supported by its solid financial foundation.

Income Statement

ZOZO has demonstrated strong revenue growth with a 8.19% increase from 2024 to 2025. The company maintains high profitability, evident from a gross profit margin of 90.84% and a net profit margin of 21.28% in 2025. EBIT and EBITDA margins further reinforce its operational efficiency at 30.39% and 32.65%, respectively. The consistent upward trajectory in revenue and profitability metrics highlights a robust and expanding business model in the specialty retail sector.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.20 in 2025, indicating prudent leverage. The return on equity stands at a strong 45.92%, showcasing effective utilization of shareholder funds. An equity ratio of 52.56% highlights a healthy proportion of equity financing. The company’s solid equity base and effective debt management are key strengths, though the high ROE may indicate potential future challenges in sustaining such returns.

Cash Flow

ZOZO's cash flow profile is strong, with a significant free cash flow growth rate of 66.48% from 2024 to 2025. The operating cash flow to net income ratio of 1.33 in 2025 suggests efficient cash generation relative to net earnings. The free cash flow to net income ratio of 1.22 indicates robust cash availability for reinvestment or debt reduction. Overall, the company’s cash flow metrics suggest strong liquidity and financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	216.77B	213.13B	197.02B	183.42B	166.20B	147.37B
Gross Profit	199.68B	198.31B	183.15B	171.34B	156.17B	140.03B
EBITDA	70.38B	69.58B	64.34B	59.10B	51.74B	46.16B
Net Income	45.61B	45.35B	44.34B	39.53B	34.49B	30.93B
Balance Sheet
Total Assets	167.58B	187.81B	162.83B	155.74B	127.28B	125.66B
Cash, Cash Equivalents and Short-Term Investments	36.27B	91.49B	69.75B	74.13B	65.52B	61.65B
Total Debt	20.16B	20.00B	20.00B	20.40B	20.20B	20.00B
Total Liabilities	79.25B	89.09B	78.08B	79.05B	72.18B	70.15B
Stockholders Equity	88.32B	98.72B	84.74B	76.57B	54.95B	55.44B
Cash Flow
Free Cash Flow	0.00	55.31B	34.59B	27.71B	38.67B	41.57B
Operating Cash Flow	0.00	60.11B	42.59B	36.67B	39.90B	44.79B
Investing Cash Flow	0.00	-6.29B	-9.88B	-10.59B	-1.28B	-4.65B
Financing Cash Flow	0.00	-32.08B	-37.14B	-17.74B	-34.82B	-12.12B

ZOZO Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1359.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3092, the sentiment is Neutral. The current price of 1359.5 is above the 20-day moving average (MA) of 1321.97, above the 50-day MA of 1315.97, and below the 200-day MA of 1430.40, indicating a neutral trend. The MACD of 8.29 indicates Negative momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 93.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3092.

ZOZO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4385	73 Outperform	¥499.26B	17.69	31.11%	―	4.83%	106.29%
3064	69 Neutral	¥1.20T	38.83	28.71%	1.03%	14.16%	26.13%
3092	67 Neutral	¥1.21T	26.73	47.74%	2.72%	6.80%	0.62%
8282	67 Neutral	¥247.94B	22.74	―	2.76%	2.23%	57.10%
9831	64 Neutral	¥414.00B	12.65	4.18%	2.63%	1.26%	14.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4755	46 Neutral	¥2.07T	-12.60	-21.14%	―	11.45%	42.34%

ZOZO Corporate Events

ZOZO, Inc. Reports Q2 Financial Results with Increased Sales and Strategic Stock Split

ZOZO, Inc. reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, showing a 6.5% increase in net sales compared to the previous year. Despite a slight decrease in semi-annual profit attributable to owners of the parent, the company maintained a stable financial position with an equity ratio of 55.1%. The company also announced a three-for-one stock split and adjusted its dividend forecasts accordingly, indicating a strategic move to enhance shareholder value.