ZOZO (3092) AI Stock Analysis

• Market Cap: $1.01T
• Dividend Yield: 2.82%
• Average Volume (3M): 2.73M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.37
• Revenue Growth: 6.80%
• EPS Growth: 0.62%
• Country: JP
• Employees: 1,740
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 18.05
• 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: 0.97
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 4.91
• Enterprise Value/Ebitda: 13.94
• 1Y Price Target: $1,210.99
• Price Target Upside: 6.32% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): 54.63
• Revenue Forecast (FY): $229.44B

• Rating: 65 Neutral
• Price Target: ¥1,245.00 ▲(9.31% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

Strong financial performance is the primary positive driver, with healthy profitability, cash generation, and low leverage. This is offset by weak technicals (price below key moving averages and negative MACD), while valuation is moderate with some support from the dividend yield.

Positive Factors

Free cash flow growth

A 66.48% jump in free cash flow and a FCF-to-net-income ratio of 1.22 indicate durable cash generation capacity. Strong cash conversion supports reinvestment, working capital management, dividends or buybacks, and reduces reliance on external financing over the next 2-6 months.

Conservative balance sheet

Debt-to-equity of 0.20 and a 52.56% equity ratio point to prudent leverage and a solid equity base. This financial flexibility lowers refinancing and solvency risk, enabling strategic investments or weathering cyclical retail softness without immediate need for external capital.

High profit margins

Very high gross (90.84%) and healthy net (21.28%) margins reflect efficient platform economics and profitable B2B service lines. Such structural margin strength supports sustainable operating cash flow and resilience to modest revenue fluctuations over the medium term.

Negative Factors

ROE sustainability risk

ROE of 45.92% is elevated and the company report itself flags sustainability concerns. Extremely high ROE can reflect transitory factors (earnings spikes, buybacks, low equity base) and is vulnerable to mean reversion, which could pressure future ROE and investor expectations.

EPS contraction

Negative EPS growth (~-2.5%) despite revenue gains suggests per-share earnings pressure from costs, investments, or share-count dynamics. If EPS declines persist, it can signal earnings volatility and constrain capacity for dividend growth or investor returns over coming quarters.

Revenue concentration risk

A transaction-driven marketplace model concentrates revenue on platform sales and merchant fees. That exposes margins to competitive fee pressure, brand churn, and shifts in consumer behavior. Limited diversification heightens structural risk to revenue and margin stability over 2-6 months.

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

Strong overall fundamentals supported by solid income statement (86) and cash flow (82) performance, including revenue growth and robust margins, plus strong cash conversion. Balance sheet is healthy (78) with low leverage, though very high ROE may be harder to sustain.

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 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: 1139.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 1139 is above the 20-day moving average (MA) of 1126.72, below the 50-day MA of 1218.94, and below the 200-day MA of 1371.60, indicating a neutral trend. The MACD of -33.89 indicates Negative momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 56.86 is Neutral, 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
9997	71 Outperform	¥95.62B	8.50	6.96%	2.98%	1.15%	86.72%
3092	65 Neutral	$1.01T	21.78	47.74%	2.82%	6.80%	0.62%
4385	63 Neutral	¥606.27B	20.63	31.11%	―	4.83%	106.29%
3028	63 Neutral	¥83.56B	18.47	―	2.11%	6.04%	93.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4017	61 Neutral	¥1.60B	41.15	―	―	-0.97%	-6.95%
4755	41 Neutral	¥1.80T	-10.07	-21.14%	―	11.45%	42.34%

ZOZO Corporate Events

ZOZO Posts Steady Q3 Profit Growth and Confirms Fiscal 2026 Outlook

ZOZO reported solid growth for the nine months ended December 31, 2025, with net sales rising 6.7% year-on-year to ¥171.8 billion and operating profit up 6.1% to ¥54.9 billion, while profit attributable to owners of the parent increased 2.9% to ¥37.0 billion. Despite a slight decline in equity ratio to 50.9%, the company maintained robust profitability and confirmed its full-year forecast for fiscal 2026, projecting 8.6% growth in net sales and a 5.4% rise in net profit, while keeping dividend forecasts unchanged after a three-for-one stock split—indicating confidence in continued steady expansion and stable shareholder returns.

The most recent analyst rating on (JP:3092) stock is a Hold with a Yen1480.00 price target. To see the full list of analyst forecasts on ZOZO stock, see the JP:3092 Stock Forecast page.