AZOOM CO.,LTD (3496) AI Stock Analysis

• Market Cap: ¥53.98B
• Dividend Yield: 2.1%
• Average Volume (3M): 50.39K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.47
• Revenue Growth: 27.87%
• EPS Growth: 40.22%
• Country: JP
• Employees: 384
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 36.91
• Shares Outstanding: 12,272,400
• 10 Day Avg. Volume: 36,790
• 30 Day Avg. Volume: 50,386
• PEG Ratio: -1.13
• Price to Book (P/B): 8.94
• Price to Sales (P/S): 4.53
• P/FCF Ratio: 31.90
• 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: 75 Outperform
• Price Target: ¥5,063.00 ▼(-6.41% Downside)
• Action: Upgraded Date: 12/26/25
• Date: Action: Upgraded 12/26/25

The score is driven primarily by strong financial performance (profitable growth, very low leverage, and robust free cash flow) and supportive technical momentum with the stock above key moving averages. These positives are tempered by a relatively high P/E multiple, which makes valuation less attractive.

Positive Factors

Robust free cash flow generation

The company converted earnings into cash efficiently (OCF/net income 1.06, FCF/net income 1.04) and delivered 75% FCF growth, indicating durable internal funding for capex, debt service, buybacks or reinvestment without reliance on external financing.

Very low financial leverage

A debt-to-equity ratio of 0.11 and a high equity ratio (~76.8%) point to minimal financial risk and ample balance-sheet flexibility, enabling the firm to withstand downturns, pursue opportunistic investments, or selectively add leverage to fund strategic growth.

Strong profitability and returns

High gross and net margins and a 26.8% ROE signal durable operational efficiency and effective capital use. Sustained margin profiles imply pricing power or cost advantage in services, supporting sustained cash flow and shareholder returns over the medium term.

Negative Factors

Moderate revenue growth pace

A single-digit revenue increase suggests growth is modest for an economy-sensitive services business; absent faster top-line expansion, returns rely heavily on margin improvements and cash conversion, which may limit upside versus higher-growth peers.

Small employee base may limit scale

A workforce of 384 may constrain rapid geographic expansion, service capacity or large-scale project execution compared with larger competitors. Scaling headcount or operations could require sustained investment and add execution risk over the medium term.

Industry cyclical exposure

Operating in Real Estate - Services exposes revenue and margins to property cycles, interest rates and macro conditions. These structural cyclicality factors can materially affect demand and asset-related fees, creating earnings volatility across cycles.

AZOOM CO.,LTD Business Overview & Revenue Model

Company Description

AZoom co., Ltd. engages in buying and selling, mediation, management, and leasing of real estate. It is also involved in business development through Internet; Internet media development and operation; and management of parking lots. The company was founded in 2009 and is based in Tokyo, Japan.

How the Company Makes Money

AZOOM CO.,LTD generates revenue primarily through the sale of software solutions and cloud services, charging clients subscription fees and licensing fees for its proprietary technology. Additionally, the company earns income from consulting services, where it provides expertise to businesses looking to improve their technological capabilities. Strategic partnerships with other technology firms and telecommunications operators also contribute to revenue growth, as these alliances enable AZOOM to offer integrated solutions and expand its market reach. Furthermore, maintaining a strong customer base ensures a steady stream of recurring revenue from existing clients.

AZOOM CO.,LTD Financial Statement Overview

Summary

Strong overall fundamentals supported by solid revenue growth (6.32%), healthy profitability (net margin 13.59%), low leverage (debt-to-equity 0.11), high ROE (26.84%), and robust cash generation (free cash flow growth 75.19% with cash conversion around 1x net income).

Income Statement

AZOOM CO.,LTD has demonstrated strong revenue growth with a 6.32% increase in the latest year, building on consistent growth over the past few years. The company maintains healthy profit margins, with a gross profit margin of 40.97% and a net profit margin of 13.59% in the latest period. EBIT and EBITDA margins are also robust, indicating efficient operations. Overall, the income statement reflects a strong growth trajectory and profitability.

Balance Sheet

The balance sheet of AZOOM CO.,LTD shows a solid equity base with a low debt-to-equity ratio of 0.11, indicating low financial leverage and risk. The return on equity is impressive at 26.84%, showcasing effective use of shareholder funds. The equity ratio stands at 76.76%, reflecting a strong capital structure. The company is financially stable with a good balance between debt and equity.

Cash Flow

AZOOM CO.,LTD has shown a strong free cash flow growth rate of 75.19% in the latest year, indicating improved cash generation. The operating cash flow to net income ratio is 1.06, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is 1.04, further highlighting strong cash flow management. Overall, the cash flow statement reflects robust cash generation and efficient financial management.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	13.48B	10.54B	8.27B	6.42B	4.97B
Gross Profit	5.70B	4.42B	3.51B	2.73B	2.11B
EBITDA	2.74B	1.97B	1.39B	946.61M	559.48M
Net Income	1.83B	1.29B	878.90M	597.67M	326.29M
Balance Sheet
Total Assets	8.89B	5.55B	3.98B	3.04B	2.48B
Cash, Cash Equivalents and Short-Term Investments	5.74B	3.07B	2.10B	1.77B	1.48B
Total Debt	72.42M	110.53M	101.79M	124.85M	172.48M
Total Liabilities	2.06B	1.80B	1.41B	1.27B	1.18B
Stockholders Equity	6.83B	3.75B	2.57B	1.77B	1.30B
Cash Flow
Free Cash Flow	1.91B	1.09B	431.84M	490.41M	430.26M
Operating Cash Flow	1.95B	1.34B	621.10M	620.28M	518.74M
Investing Cash Flow	-459.82M	-253.87M	-200.06M	-143.79M	-114.35M
Financing Cash Flow	1.18B	-106.26M	-99.80M	-188.46M	-2.13M

AZOOM CO.,LTD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5410.00
• 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:3496, the sentiment is Negative. The current price of 5410 is above the 20-day moving average (MA) of 4402.50, above the 50-day MA of 4786.20, and above the 200-day MA of 4673.27, indicating a neutral trend. The MACD of -87.84 indicates Negative momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 66.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3496.

AZOOM CO.,LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3496	75 Outperform	¥53.98B	27.99	―	2.10%	27.87%	40.22%
2991	67 Neutral	¥15.83B	6.50	―	1.47%	20.82%	9.86%
2970	66 Neutral	¥20.89B	12.07	―	―	57.57%	57.09%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥46.80B	19.15	―	0.45%	-8.33%	-36.89%
5532	61 Neutral	¥18.69B	18.30	―	―	23.19%	44.46%
5527	59 Neutral	¥9.24B	8.70	―	3.45%	28.82%	672.17%

AZOOM CO.,LTD Corporate Events

AZOOM Posts Double-Digit Profit Growth and Confirms Strong FY2026 Outlook

AZOOM CO.,LTD reported solid growth for the quarter ended December 31, 2025, with net sales rising 24.7% year-on-year to ¥3.73 billion and profit attributable to owners of parent climbing 31.8% to ¥452 million; basic earnings per share increased accordingly, reflecting higher profitability on a slightly expanded share base following a two-for-one stock split in October 2025. The company also reaffirmed its full-year forecast for the fiscal year ending September 30, 2026, projecting a 26.1% increase in net sales to ¥17.0 billion and a 20.1% rise in profit attributable to owners of parent to ¥2.2 billion, alongside a planned annual dividend of ¥126 per share (post-split basis), underscoring management’s confidence in continued earnings growth and its intention to return more cash to shareholders while maintaining a high equity ratio of 76.7%.

The most recent analyst rating on (JP:3496) stock is a Buy with a Yen5038.00 price target. To see the full list of analyst forecasts on AZOOM CO.,LTD stock, see the JP:3496 Stock Forecast page.

AZOOM Books ¥300 Million Dividend From Subsidiary With No Impact on Consolidated Earnings

AZOOM CO., LTD. has disclosed that it received a 300 million yen dividend from its consolidated subsidiary TEPPEKI CO., LTD. on December 22, 2025, triggering a requirement to file an extraordinary report under Japan’s financial disclosure regulations. The dividend will be booked as non-operating income in AZOOM’s non-consolidated results for the fiscal year ending September 2026, but because it originates from a consolidated subsidiary, it will have no impact on the company’s consolidated financial statements, limiting implications for group-level earnings and shareholders assessing overall group performance.

The most recent analyst rating on (JP:3496) stock is a Hold with a Yen5354.00 price target. To see the full list of analyst forecasts on AZOOM CO.,LTD stock, see the JP:3496 Stock Forecast page.

AZOOM Details Policy on Lowering Investment Unit After 2-for-1 Stock Split

AZOOM CO.,LTD has announced its stance on reducing its investment unit, stating that it views smaller trading units as an effective way to invigorate the stock market by broadening its investor base and improving the liquidity of its shares. In line with this policy, the company executed a 2-for-1 stock split of its common stock effective October 1, 2025, thereby lowering the minimum investment amount, and it plans to continue evaluating any further reduction in investment units by monitoring share price trends, overall market conditions, and shareholder structure, in accordance with Tokyo Stock Exchange regulations governing high investment units.

The most recent analyst rating on (JP:3496) stock is a Hold with a Yen5354.00 price target. To see the full list of analyst forecasts on AZOOM CO.,LTD stock, see the JP:3496 Stock Forecast page.