ZOZO (3092) AI Stock Analysis

• Market Cap: ¥1.37T
• Dividend Yield: 2.34%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.59
• Revenue Growth: 8.18%
• EPS Growth: 3.02%
• Country: JP
• Employees: 1,740
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Specialty Retail
• EPS (TTM): 10.55
• Shares Outstanding: 892,032,350
• 10 Day Avg. Volume: 2,282,980
• 30 Day Avg. Volume: 2,247,126
• PEG Ratio: 1.56
• Price to Book (P/B): 11.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.99
• 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: ¥1,443.24
• Price Target Upside: -6.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: ¥1,686.00 ▲(9.41%Upside)

ZOZO's overall stock score is primarily driven by its strong financial performance, reflecting robust revenue and profit growth, efficient equity use, and solid cash generation. Technical analysis shows mixed signals, with some bearish indicators. The current valuation suggests the stock is trading at a premium, which could limit upside potential unless the company continues to deliver strong growth. The lack of earnings call data and significant corporate events leaves the financial performance and technical analysis as the most critical factors.

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, Inc. generates revenue primarily through its e-commerce platform, ZOZOTOWN, by facilitating sales of fashion apparel and accessories. The company earns money through transaction fees and commissions on sales made through its platform. Additionally, ZOZO offers advertising services to brands looking to increase their visibility on the platform. The company's innovative technologies, such as the ZOZOSUIT and ZOZOGLASS, help to enhance customer satisfaction and potentially increase sales. Strategic partnerships with fashion brands and leveraging customer data analytics also play a significant role in driving ZOZO's business growth and profitability.

ZOZO Financial Statement Overview

Summary

ZOZO demonstrates a robust financial performance with strong revenue growth and high profitability margins. The company has a stable balance sheet with low leverage and strong cash flow generation, indicating financial flexibility and capacity for growth. However, the high ROE suggests potential challenges in sustaining high returns.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	210.52B	213.13B	197.02B	183.42B	166.20B	147.37B
Gross Profit	193.41B	193.57B	183.15B	171.34B	156.17B	140.03B
EBITDA	69.90B	69.58B	64.34B	59.10B	52.01B	46.54B
Net Income	47.81B	45.35B	44.34B	39.53B	34.49B	30.93B
Balance Sheet
Total Assets	178.32B	187.81B	161.86B	155.74B	127.28B	125.66B
Cash, Cash Equivalents and Short-Term Investments	67.13B	91.49B	69.75B	74.13B	65.52B	61.65B
Total Debt	20.00B	20.00B	20.00B	20.40B	20.20B	20.00B
Total Liabilities	89.44B	89.09B	77.12B	79.05B	72.18B	70.15B
Stockholders Equity	88.88B	98.72B	84.74B	76.57B	54.95B	55.44B
Cash Flow
Free Cash Flow	0.00	55.31B	33.23B	27.40B	38.56B	41.44B
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: Positive
• Last Price: 1541.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3092, the sentiment is Positive. The current price of 1541 is above the 20-day moving average (MA) of 1535.90, below the 50-day MA of 1550.40, and below the 200-day MA of 1573.18, indicating a neutral trend. The MACD of -4.62 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 45.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3092.

ZOZO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3092	69 Neutral	¥1.37T	30.27	48.74%	2.34%	8.18%	3.02%
Sector *	64 Neutral	£1.71B	10.36	6.12%	3.42%	0.55%	-32.84%
RKUNF	―	$11.26B	―	-22.97%	―	―	―
MONOF	―	$9.04B	38.85	28.00%	<0.01%	―	―
MRCIF	―	$2.63B	24.20	21.33%	―	―	―
YMDAF	―	$2.58B	12.38	4.20%	2.74%	―	―
8282	62 Neutral	¥246.01B	26.74		2.88%	2.74%	35.44%

ZOZO Corporate Events

ZOZO, Inc. Outlines Relationship with Controlling Shareholder LY Corporation

ZOZO, Inc. announced its relationship with its controlling shareholder, LY Corporation, which holds a 51.5% indirect ownership. The company maintains operational independence despite this influence, with LY Corporation providing strategic advice through appointed directors. This relationship includes collaborations like ZOZOTOWN’s presence on Yahoo! JAPAN Shopping and the use of PayPay services, indicating a strong integration within the parent company’s ecosystem.

The most recent analyst rating on (JP:3092) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on ZOZO stock, see the JP:3092 Stock Forecast page.

ZOZO Announces Share Repurchase Status

ZOZO, Inc. has announced the status of its share repurchase program, which was approved during a Board Meeting on April 30, 2025. The company acquired 2,630,200 shares of its common stock for approximately 4.02 billion yen through market purchases on the Tokyo Stock Exchange between May 1 and May 31, 2025. This move is part of a larger plan to repurchase up to 10 million shares by September 1, 2025, with a total budget of up to 10 billion yen. The repurchase is expected to impact the company’s stock value and shareholder returns positively.

The most recent analyst rating on (JP:3092) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on ZOZO stock, see the JP:3092 Stock Forecast page.

ZOZO Announces Director Nominees for Upcoming Shareholders Meeting

ZOZO, Inc. announced the nomination of candidates for its Board of Directors to be proposed at the upcoming 27th Ordinary General Meeting of Shareholders. The company has resolved to reappoint several key figures to their current positions, including the President & CEO, CFO, and COO, as well as other directors. Additionally, a new candidate has been nominated for the position of Substitute Audit and Supervisory Committee member. This move is part of ZOZO’s ongoing efforts to maintain leadership stability and continuity in its governance structure.

The most recent analyst rating on (JP:3092) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on ZOZO stock, see the JP:3092 Stock Forecast page.

ZOZO Announces Share Repurchase Plan to Enhance Shareholder Returns

ZOZO, Inc. has announced a share repurchase plan as part of its strategy to return profits to shareholders, aiming to maintain a total return ratio of over 80% over a five-year average. The company plans to repurchase up to 10 million shares, representing 1.12% of its outstanding shares, for a total of up to 10 billion yen, between May 1 and September 1, 2025, through market purchases on the Tokyo Stock Exchange.

ZOZO, Inc. Reports Stable Growth in FY2025 Financial Results

ZOZO, Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing an increase in net sales by 8.2% to 213,131 million yen and a slight rise in profit attributable to owners of parents by 2.3% to 45,346 million yen. The company also completed a three-for-one stock split on April 1, 2025, which is expected to impact earnings per share calculations. The financial results indicate a stable growth trajectory, with improvements in cash flow from operating activities and a forecasted continued growth in the fiscal year ending March 31, 2026, with net sales expected to rise by 5.1%.