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ZIGExN Co., Ltd. (JP:3679)
:3679
Japanese Market

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

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JP

ZIGExN Co., Ltd.

(3679)

Rating:79Outperform
Price Target:
¥539.00
▲(13.71%Upside)
ZIGExN Co., Ltd. scores well due to its strong financial performance and attractive valuation. The stock's technical indicators suggest positive momentum, supporting its appeal. However, the increase in liabilities and lack of recent earnings call insights temper the outlook slightly.

ZIGExN Co., Ltd. (3679) vs. iShares MSCI Japan ETF (EWJ)

ZIGExN Co., Ltd. Business Overview & Revenue Model

Company DescriptionZIGExN Co., Ltd. is a Japanese company primarily engaged in the operation of various online platforms and services. The company specializes in providing internet-based services that connect users with opportunities across different sectors, including employment, real estate, and lifestyle. ZIGExN leverages its platforms to facilitate efficient matching between users and service providers, enhancing their access to necessary information and services.
How the Company Makes MoneyZIGExN Co., Ltd. generates revenue through a diverse range of online platforms that serve as intermediaries between users and service providers. The company primarily earns money via subscription fees, listing fees, and advertising revenue. Businesses pay to list their services or job openings on ZIGExN's platforms, which include job search sites, real estate portals, and other lifestyle-related services. Additionally, ZIGExN offers premium services and features for enhanced visibility or functionality, contributing to its income. The company may also partner with other firms to expand its service offerings and reach, further bolstering its revenue streams.

ZIGExN Co., Ltd. Financial Statement Overview

Summary
ZIGExN Co., Ltd. demonstrates strong financial performance with robust revenue growth, improving profitability, and effective cash flow management. While the company's financial health is solid, the increasing total liabilities need monitoring.
Income Statement
85
Very Positive
ZIGExN Co., Ltd. shows a robust revenue growth with a steady increase from ¥12.56 billion in 2021 to ¥25.45 billion in 2025. Gross profit margin remains strong at around 82.1% to 84.8% over recent years, indicating effective cost management. Net profit margins have improved significantly, reaching 15.2% in 2025 from a negative margin in 2021, demonstrating enhanced profitability. Both EBIT and EBITDA margins have shown consistent improvement, highlighting operational efficiency.
Balance Sheet
78
Positive
The company's debt-to-equity ratio is low at 0.23, indicating conservative financial leverage. Return on equity has improved to 19.4% in 2025, reflecting strong returns on shareholders' investments. The equity ratio stood at 53.2%, showcasing a solid equity base compared to total assets. However, there is a considerable increase in total liabilities over the period, which warrants attention.
Cash Flow
82
Very Positive
Operating cash flow has seen a consistent upward trend, peaking at ¥7.33 billion in 2025, indicative of strong cash generation capabilities. Free cash flow growth rate is commendable, with a significant rise from prior periods. The ratio of operating cash flow to net income is robust at 1.89, reflecting effective conversion of profits into cash. The free cash flow to net income ratio is also strong at 1.85, underscoring efficient cash management.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue25.45B23.25B18.71B15.27B12.56B
Gross Profit20.91B18.63B15.55B12.78B10.48B
EBITDA7.08B6.72B5.24B4.25B-158.00M
Net Income3.87B3.80B2.93B2.26B-1.96B
Balance Sheet
Total Assets37.57B34.53B30.39B21.60B20.10B
Cash, Cash Equivalents and Short-Term Investments14.29B13.26B10.00B8.60B7.42B
Total Debt4.66B4.52B6.59B2.90B3.68B
Total Liabilities17.62B15.09B14.32B6.67B7.10B
Stockholders Equity19.98B19.45B16.07B14.93B12.99B
Cash Flow
Free Cash Flow7.17B5.97B4.68B2.99B1.96B
Operating Cash Flow7.33B6.84B5.71B3.85B2.57B
Investing Cash Flow-2.45B-961.00M-4.60B-1.28B-1.75B
Financing Cash Flow-3.84B-2.59B267.00M-1.39B-29.00M

ZIGExN Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price474.00
Price Trends
50DMA
457.14
Positive
100DMA
443.61
Positive
200DMA
481.02
Negative
Market Momentum
MACD
5.51
Positive
RSI
53.11
Neutral
STOCH
50.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3679, the sentiment is Positive. The current price of 474 is above the 20-day moving average (MA) of 469.00, above the 50-day MA of 457.14, and below the 200-day MA of 481.02, indicating a neutral trend. The MACD of 5.51 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 50.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3679.

ZIGExN Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥75.17B23.23
26.95%90.28%
79
Outperform
¥50.44B12.43
0.64%9.46%4.40%
76
Outperform
¥69.88B41.51
0.85%36.56%47.47%
73
Outperform
¥19.93B18.62
1.30%8.97%13.17%
70
Neutral
¥30.46B27.11
0.46%17.06%-3.97%
61
Neutral
$41.24B-0.79-14.21%3.80%2.39%-73.52%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3679
ZIGExN Co., Ltd.
470.00
-96.38
-17.02%
JP:2477
Temairazu, Inc.
3,050.00
-361.17
-10.59%
JP:3491
GA technologies Co., Ltd.
1,876.00
652.00
53.27%
JP:3661
m-up holdings, Inc.
1,933.00
569.29
41.75%
JP:3922
PR TIMES Corporation
2,302.00
474.41
25.96%

ZIGExN Co., Ltd. Corporate Events

ZIGExN Co., Ltd. Reports Progress on Share Repurchase Program
Jul 1, 2025

ZIGExN Co., Ltd. announced the progress of its share repurchase program, which was initially resolved in May 2025. The company repurchased 322,100 common shares for JPY 148,352,400 between June 1 and June 30, 2025, through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan to repurchase up to 1.5 million shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

ZIGExN Co., Ltd. Announces Performance-linked Stock Options Issuance
Jun 6, 2025

ZIGExN Co., Ltd. has announced the determination of issuance of performance target-linked stock options for its directors and employees, as well as those of its subsidiaries. This decision, resolved in a recent board meeting, involves the allocation of 20,900 stock options, which can be converted into 2,090,000 common shares, potentially impacting the company’s operational incentives and stakeholder interests.

ZIGExN Co., Ltd. Advances Share Repurchase Program
Jun 2, 2025

ZIGExN Co., Ltd. announced the progress of its share repurchase program, initially resolved at the Board of Directors meeting on May 13, 2025. The company repurchased 361,800 common shares for JPY 162,518,300 between May 15 and May 31, 2025, as part of a larger plan to buy back up to 1,500,000 shares by March 31, 2026. This move is part of the company’s strategic efforts to enhance shareholder value and optimize its capital structure.

ZIGExN Co., Ltd. Issues Performance-Linked Stock Options to Boost Management and Shareholder Value
May 22, 2025

ZIGExN Co., Ltd. has announced the issuance of performance target-linked stock options to its directors and employees, as well as those of its subsidiaries. This initiative aims to strengthen management and incentivize long-term enterprise value growth. The stock options, which are linked to performance goals, are expected to enhance shareholder value and are structured to minimize dilution effects on existing shares.

ZIGExN Co., Ltd. Reports Revenue Growth and Strategic Expansion in FY2025
May 13, 2025

ZIGExN Co., Ltd. reported its consolidated financial results for the fiscal year ending March 2025, showcasing a revenue increase of 9.5% year-over-year, reaching 25,450 million yen. Despite a slight decrease in profit margins, the company forecasts continued growth in the upcoming fiscal year, with a projected revenue increase of 10%. The inclusion of Hoken Mammoth Inc. in its consolidation scope indicates strategic expansion efforts. The financial outlook suggests a stable position in the market, with dividends per share expected to rise, reflecting confidence in sustained profitability.

ZIGExN Co., Ltd. Announces Share Buyback and Treasury Share Cancellation
May 13, 2025

ZIGExN Co., Ltd. has announced a strategic decision to conduct share buybacks and cancel a portion of its treasury shares. This move is aimed at enhancing shareholder value by maintaining a flexible capital policy, while also reserving some shares for incentive-related purposes and future M&A activities. The company plans to repurchase up to 1.5 million shares and cancel 1.7 million shares, reflecting its commitment to optimizing its capital structure and supporting strategic growth initiatives.

ZIGExN Co., Ltd. Announces Increased Dividend for Fiscal Year
May 13, 2025

ZIGExN Co., Ltd. announced a dividend of 10.5 yen per share, comprising an ordinary dividend of 7.5 yen and a special dividend of 3.0 yen, to be distributed from retained earnings. This decision reflects the company’s policy of considering business performance, financial condition, and future development in its surplus distribution, marking an increase from the previous fiscal year’s dividend.

ZIGExN Co., Ltd. Announces New Management Structure
May 13, 2025

ZIGExN Co., Ltd. announced a new management structure, effective June 25, 2025, following a resolution by its Board of Directors. The changes include the appointment of new directors and operating officers, which is expected to enhance the company’s operational efficiency and strategic direction. This restructuring aims to strengthen ZIGExN’s market position and improve stakeholder confidence.

ZIGExN Co., Ltd. Reports Decline in Fiscal Year Financial Results
May 13, 2025

ZIGExN Co., Ltd. reported a significant decline in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced a notable drop in ordinary and net income, primarily due to a substantial decrease in dividend income from its subsidiaries, impacting its overall profitability.

ZIGExN Co., Ltd. Expands HR Capabilities with Strategic Acquisition
May 12, 2025

ZIGExN Co., Ltd. announced the acquisition of Ultimate Resources Group Co., Ltd. by its subsidiary Ties Co., Ltd., aiming to strengthen its talent acquisition capabilities. This strategic move is expected to create synergies between Ties’ job placement expertise and URG’s RPO services, enhancing the company’s market position amidst a growing HR outsourcing market.

ZIGExN Co., Ltd. Launches Executive and Employee Stock Ownership Plans
Apr 17, 2025

ZIGExN Co., Ltd. has announced the establishment of executive and employee stock ownership plans to be implemented from September 2025. These plans aim to prevent insider trading, promote stock acquisition, and align the interests of employees and shareholders, thereby enhancing corporate value. By offering incentives and improving employee benefits, the company seeks to attract and retain talent, foster participation in management, and improve stock market liquidity.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025