ZIGExN Co., Ltd. (3679) AI Stock Analysis

• Market Cap: ¥52.79B
• Dividend Yield: 1.51%
• Average Volume (3M): 269.92K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.66
• Revenue Growth: 10.84%
• EPS Growth: 5.13%
• Country: JP
• Employees: 927
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 10.13
• Shares Outstanding: 110,000,000
• 10 Day Avg. Volume: 215,440
• 30 Day Avg. Volume: 269,916
• PEG Ratio: 2.62
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 6.15
• 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): 40.85
• Revenue Forecast (FY): ¥28.22B

• Rating: 68 Neutral
• Price Target: ¥572.00 ▲(8.95% Upside)

ZIGExN Co., Ltd. demonstrates strong financial performance with robust profitability and a solid balance sheet. However, technical indicators suggest weak market momentum, which could impact short-term price movements. The stock's valuation is reasonable, supported by a modest dividend yield. Focus on operational efficiency and cash flow management will be crucial for sustaining growth.

Positive Factors

Profitability

High profitability margins indicate strong operational efficiency and the ability to maintain competitive pricing, supporting long-term financial health.

Balance Sheet Strength

A solid balance sheet with low leverage and high ROE suggests financial stability and effective capital utilization, providing resilience against market fluctuations.

Revenue Streams

Diverse revenue streams from job postings, analytics, and partnerships enhance market reach and reduce dependency on a single income source, supporting sustainable growth.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could limit the company's ability to invest in new opportunities or weather economic downturns, impacting long-term growth potential.

Operational Efficiency

A decrease in EBIT margin suggests potential inefficiencies or rising costs, which could erode profitability if not addressed, affecting future earnings.

Cash Flow Constraints

Cash flow constraints could hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability and expansion plans.

ZIGExN Co., Ltd. Business Overview & Revenue Model

Company Description

ZIGExN Co., Ltd. (3679) is a Japanese company specializing in the provision of internet-related services and solutions, primarily aimed at enhancing recruitment and job placement processes. The company operates in various sectors including human resources technology, digital marketing, and e-commerce. Its core products include job listing platforms, recruitment management systems, and data analytics services that help businesses optimize their hiring processes and improve talent acquisition strategies.

How the Company Makes Money

ZIGExN generates revenue through multiple streams, predominantly by charging businesses for job postings and recruitment solutions on its platforms. The company offers subscription-based services that provide employers with access to a larger talent pool and enhanced visibility for their job listings. Additionally, ZIGExN earns money through premium services that include advanced analytics and targeted advertising options for employers seeking to attract specific candidates. Strategic partnerships with educational institutions and training centers also contribute to its revenue, allowing for bundled services and expanded market reach. The company's focus on digital transformation and data-driven solutions positions it favorably in the competitive HR tech landscape, enhancing its earning potential.

ZIGExN Co., Ltd. Financial Statement Overview

Summary

ZIGExN Co., Ltd. exhibits strong profitability with a consistent gross profit margin above 80% and a healthy net profit margin around 15%. The balance sheet is solid with a low debt-to-equity ratio of 0.23 and strong return on equity at 20.1%. However, the decline in free cash flow growth and slight increase in debt levels highlight areas for improvement.

Income Statement

ZIGExN Co., Ltd. demonstrates strong profitability with a consistent gross profit margin above 80% and a healthy net profit margin around 15%. The company has shown steady revenue growth, with a TTM revenue growth rate of 2.3%. EBIT and EBITDA margins are robust, indicating efficient operations. However, the slight decline in EBIT margin from the previous period suggests a need for monitoring operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.23, indicating prudent leverage. The return on equity is strong at 20.1%, showcasing effective use of equity capital. The equity ratio is healthy, suggesting a stable capital structure. However, the slight increase in total debt over recent periods warrants attention to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, down by 33.4% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. Despite this, the free cash flow to net income ratio remains strong at 0.95, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.04B	25.45B	23.25B	18.71B	15.27B	12.56B
Gross Profit	21.28B	20.91B	18.63B	15.55B	12.78B	10.48B
EBITDA	7.09B	7.08B	6.72B	5.24B	4.25B	-157.00M
Net Income	3.86B	3.87B	3.80B	2.93B	2.26B	-1.96B
Balance Sheet
Total Assets	34.84B	37.57B	34.53B	30.39B	21.60B	20.10B
Cash, Cash Equivalents and Short-Term Investments	10.64B	14.29B	13.26B	10.00B	8.60B	7.42B
Total Debt	4.08B	5.20B	4.52B	6.59B	2.90B	3.68B
Total Liabilities	15.18B	17.62B	15.09B	14.32B	6.67B	7.10B
Stockholders Equity	19.69B	19.98B	19.45B	16.07B	14.93B	12.99B
Cash Flow
Free Cash Flow	4.62B	7.17B	5.97B	4.68B	2.99B	1.96B
Operating Cash Flow	4.75B	7.33B	6.84B	5.71B	3.85B	2.57B
Investing Cash Flow	-2.94B	-2.45B	-961.00M	-4.60B	-1.28B	-1.75B
Financing Cash Flow	-5.10B	-3.84B	-2.59B	267.00M	-1.39B	-29.00M

ZIGExN Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 525.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3679, the sentiment is Neutral. The current price of 525 is above the 20-day moving average (MA) of 499.10, above the 50-day MA of 519.88, and above the 200-day MA of 477.48, indicating a neutral trend. The MACD of -7.27 indicates Negative momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 55.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3679.

ZIGExN Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3922	77 Outperform	¥40.21B	22.84	―	0.36%	18.02%	46.43%
3661	76 Outperform	¥68.94B	33.20	―	0.89%	30.25%	67.87%
2477	73 Outperform	¥20.84B	19.40	―	1.22%	8.09%	8.53%
3679	68 Neutral	¥52.79B	12.53	―	1.51%	10.84%	5.13%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3491	60 Neutral	¥82.09B	20.18	―	―	27.02%	158.11%

ZIGExN Co., Ltd. Corporate Events

ZIGExN Co., Ltd. Updates on Share Repurchase Progress

ZIGExN Co., Ltd. announced the progress of its share repurchase program, initially resolved in May 2025. Despite the authorization to repurchase up to 1.5 million shares, no shares were repurchased in September 2025. Cumulatively, the company has repurchased 883,300 shares for approximately JPY 402 million, indicating a strategic move to manage its capital structure.

The most recent analyst rating on (JP:3679) stock is a Buy with a Yen521.00 price target. To see the full list of analyst forecasts on ZIGExN Co., Ltd. stock, see the JP:3679 Stock Forecast page.

ZIGExN Expands into Resort Sector with Acquisition of Alpha Staff

ZIGExN Co., Ltd. has acquired Alpha Staff Co., Ltd., making it a wholly owned subsidiary to enter the growing resort sector and temporary staffing market. This strategic move aims to capitalize on the increasing number of inbound tourists and labor shortages, enhancing profitability and creating synergies between Alpha Staff and ZIGExN’s existing businesses.

The most recent analyst rating on (JP:3679) stock is a Buy with a Yen521.00 price target. To see the full list of analyst forecasts on ZIGExN Co., Ltd. stock, see the JP:3679 Stock Forecast page.

ZIGExN Co., Ltd. Reports Q1 FY3/2026 Financial Results with Revenue Growth

ZIGExN Co., Ltd. reported its consolidated financial results for the first quarter of FY3/2026, showing a revenue increase of 9.5% year-over-year. Despite the revenue growth, the company experienced a slight decline in net income and income before tax compared to the previous year. The financial position remained stable with a slight decrease in total assets and equity. The company maintained its dividend forecast and did not revise its financial forecast for the full fiscal year, indicating confidence in its ongoing operations.

ZIGExN Co., Ltd. Advances Share Repurchase Program

ZIGExN Co., Ltd. announced the progress of its share repurchase program, initially resolved in May 2025. The company repurchased 199,400 common shares for JPY 91,625,500 between July 1 and July 31, 2025, as part of a larger plan to buy back up to 1.5 million shares by March 2026. This move is likely aimed at enhancing shareholder value and optimizing capital structure.

ZIGExN’s Subsidiary Acquires AnyCareer to Boost Recruitment Services

ZIGExN Co., Ltd.’s subsidiary, REJOB Co., Ltd., has acquired AnyCareer Inc., a company specializing in job placement for pharmacists, to enhance its recruitment capabilities in the pharmacy sector. This acquisition aims to leverage AnyCareer’s extensive client base and operational expertise to create synergies with REJOB’s existing services, thereby expanding its market presence and addressing the growing demand for pharmacists amid a labor shortage.