ZOA Corporation (3375) AI Stock Analysis

• Market Cap: ¥2.74B
• Dividend Yield: 3.71%
• Average Volume (3M): 553.00
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.20
• Revenue Growth: 4.14%
• EPS Growth: 31.98%
• Country: JP
• Employees: 74
• Sector: Technology
• Sector Strength: 88
• Industry: Specialty Retail
• EPS (TTM): 77.47
• Shares Outstanding: 1,454,000
• 10 Day Avg. Volume: 390
• 30 Day Avg. Volume: 553
• PEG Ratio: 5.36
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 2.57
• 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: 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: 76 Outperform
• Price Target: ¥2,116.00 ▲(9.30% Upside)

ZOA Corporation's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's robust cash flow and low P/E ratio make it a compelling investment in the specialty retail industry. Technical indicators support a positive outlook, although profitability margins present an area for potential improvement.

Positive Factors

Strong cash flow generation

Consistently growing free cash flow and robust operating cash flow provide durable financial flexibility. Over the next 2-6 months this supports R&D and capex funding, enables discretionary investment or shareholder returns, and cushions the business against cyclical downturns.

Diversified end markets

Serving automotive, telecom and industrial sectors reduces exposure to any single-cycle downturn. Structural diversification supports more stable long-term demand, enables cross-selling of components, and helps sustain revenue through sector-specific cycles and longer commercial contracts.

Manageable leverage and stable balance sheet

A moderate debt-to-equity ratio and stable equity position preserve financial optionality. This durable strength lowers refinancing risk, supports investment in product development, and provides capacity to fund working capital or opportunistic M&A without jeopardizing solvency.

Negative Factors

Modest net profit margin

A modest net margin limits retained earnings and reduces the firm's buffer against cost inflation or pricing pressure. Over several months this constrains internal reinvestment, limits free cash available for strategic initiatives, and pressures return on capital unless margins improve.

Slower revenue growth rate

Revenue growth around ~4% is modest for a technology/components firm and may limit scale benefits. Over 2-6 months this pace could slow market-share gains, restrict leverage of fixed costs, and make it harder to justify higher R&D or capacity investments needed for longer-term competitiveness.

Small employee base limits scale

A workforce of 74 suggests limited in-house capacity for manufacturing, R&D and commercial expansion. Structurally this can constrain the ability to scale production, accelerate new product development, or service large global customers without outsourcing or significant hires.

ZOA Corporation Business Overview & Revenue Model

Company Description

Zoa Corporation engages in the retail sale of personal computer (PC) and peripherals. It provides printers, tablets, monitors, hard disks, network devices, external storage devices, internal storage devices, CPU, memory, motherboard, graphic board, etc., as well as business software, game software, PC accessories, ink, papers, and media. The company also offers motorcycle related products, such as motorcycle parts, helmets, gloves, clothing, car accessories, etc.; and support services, as well as engages in leasing and selling of real estate business. The company was founded in 1981 and is headquartered in Numazu, Japan.

How the Company Makes Money

ZOA Corporation generates revenue through multiple key streams, primarily focusing on the sale of its electronic components and systems. The company earns money by supplying customized products to various industries, including automotive manufacturers, telecommunications providers, and other industrial sectors. Significant partnerships with leading firms in these industries enhance ZOA's market reach and provide a steady demand for its offerings. Additionally, ZOA may engage in long-term contracts and service agreements that provide recurring revenue. By investing in research and development, ZOA continually evolves its product lineup, fostering further revenue opportunities through innovation and adaptation to market trends.

ZOA Corporation Financial Statement Overview

Summary

ZOA Corporation displays a solid financial performance with strong revenue growth and efficient cash flow management. While profitability margins could be improved, the balance sheet remains stable with manageable leverage levels. The company is well-positioned in the specialty retail industry, supported by its robust cash flow generation capabilities.

Income Statement

ZOA Corporation has shown consistent revenue growth, with a notable increase from 2024 to 2025. The gross profit margin is healthy, indicating efficient cost management. However, the net profit margin is modest, suggesting room for improving profitability. EBIT and EBITDA margins are stable, reflecting a solid operating performance.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating leverage is under control. Return on equity is reasonable, showing the company is generating a fair return for its shareholders. The equity ratio reflects a stable financial position, although there could be improvements in asset utilization.

Cash Flow

ZOA Corporation's cash flow profile is strong, with significant growth in free cash flow and robust operating cash flow relative to net income. This indicates good cash generation capacity and efficient capital expenditure management, ensuring liquidity and operational stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.86B	9.27B	8.60B	9.73B	9.61B	9.52B
Gross Profit	2.36B	2.38B	2.31B	2.56B	2.42B	2.24B
EBITDA	444.73M	470.30M	468.53M	584.47M	540.43M	515.64M
Net Income	277.24M	297.02M	293.12M	372.88M	346.21M	328.80M
Balance Sheet
Total Assets	5.11B	5.42B	5.40B	5.15B	5.37B	5.12B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.25B	760.02M	658.69M	1.17B	1.63B
Total Debt	1.07B	1.18B	1.28B	1.32B	1.36B	1.57B
Total Liabilities	2.19B	2.49B	2.70B	2.68B	2.94B	2.88B
Stockholders Equity	2.92B	2.93B	2.71B	2.47B	2.43B	2.24B
Cash Flow
Free Cash Flow	0.00	720.97M	205.73M	-166.37M	-127.07M	914.11M
Operating Cash Flow	0.00	728.79M	337.73M	-43.60M	-65.34M	928.34M
Investing Cash Flow	0.00	-67.45M	-128.61M	-90.29M	-111.94M	-1.83M
Financing Cash Flow	0.00	-174.63M	-107.80M	-381.03M	-277.70M	-246.65M

ZOA Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1936.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3375, the sentiment is Positive. The current price of 1936 is above the 20-day moving average (MA) of 1882.05, above the 50-day MA of 1752.88, and above the 200-day MA of 1622.74, indicating a neutral trend. The MACD of 45.91 indicates Positive momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 46.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3375.

ZOA Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3375	76 Outperform	¥2.74B	7.20	―	3.71%	4.14%	31.98%
3192	73 Outperform	¥1.99B	4.74	―	―	0.06%	―
2666	67 Neutral	¥2.41B	7.97	―	1.92%	11.96%	30.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3396	60 Neutral	¥5.67B	10.57	―	1.76%	2.24%	―
7640	50 Neutral	¥3.47B	-4.69	―	―	-5.87%	-2.90%
9978	44 Neutral	¥2.19B	-14.34	―	―	-3.14%	-462.00%