Zappallas, Inc. (3770) AI Stock Analysis

• Market Cap: ¥3.96B
• Dividend Yield: 1.23%
• Average Volume (3M): 42.62K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.29
• Revenue Growth: -1.29%
• EPS Growth: -4.45%
• Country: JP
• Employees: 98
• Sector: Communication Services
• Sector Strength: 96
• Industry: Internet Content & Information
• EPS (TTM): -1.05
• Shares Outstanding: 10,739,000
• 10 Day Avg. Volume: 6,080
• 30 Day Avg. Volume: 42,616
• PEG Ratio: 20.41
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 15.62
• 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

• Rating: 72 Outperform
• Price Target: ―

Zappallas, Inc. demonstrates a strong financial foundation with significant equity and cash reserves and improving profitability. Technical analysis supports a positive momentum, while valuation metrics suggest a fair market price. The lack of recent earnings call data and corporate events means the analysis relies heavily on existing financials and technical trends.

Zappallas, Inc. Business Overview & Revenue Model

Company Description

Zappallas, Inc. is a Japanese company that operates in the digital content and e-commerce sectors. The company is primarily known for its development and distribution of online fortune-telling services, which are available through websites and mobile applications. Zappallas leverages its expertise in digital content creation to engage a wide audience, offering a range of entertainment and lifestyle services.

How the Company Makes Money

Zappallas, Inc. generates revenue through several key channels. The primary revenue stream comes from its fortune-telling and astrology services, which are offered via subscription models and one-time purchases on digital platforms. The company also earns money through advertising partnerships by featuring third-party advertisements within its digital content. Additionally, Zappallas may engage in e-commerce activities related to lifestyle and entertainment products, although these contribute less significantly to the overall revenue. The synergy between its digital service offerings and targeted advertising allows Zappallas to capitalize on a broad customer base interested in astrology and related entertainment content.

Zappallas, Inc. Financial Statement Overview

Summary

Zappallas, Inc. exhibits a stable financial position with strong equity and cash reserves, providing a solid foundation for future growth. The income statement shows recovery and improving profitability, but revenue growth remains a challenge. Cash flow management has improved, yet historical fluctuations suggest the need for continued vigilance.

Income Statement

Zappallas, Inc. shows a mixed performance in its income statement. The gross profit margin remains strong at around 72% for 2024, indicating efficient cost management. However, the net profit margin has fluctuated significantly, showing a positive 3.72% in 2024 from a negative margin in the previous year, reflecting recovery from past losses. Revenue growth is relatively stagnant, with a slight decrease from 2023 to 2024. EBIT and EBITDA margins have improved from negative to positive, suggesting recovery in operational efficiency.

Balance Sheet

The balance sheet is robust with no debt, a high equity ratio of 91.5%, and significant cash reserves, indicating financial stability and low leverage risk. Return on Equity (ROE) has turned positive, showing an improvement from previous losses, but still remains moderate at 2.86% for 2024.

Cash Flow

Cash flow from operations has improved significantly, turning positive in 2024 with a strong free cash flow of ¥234.33 million, indicating better cash management. The free cash flow to net income ratio is healthy, reflecting good conversion of net income to cash. However, historical volatility in cash flows suggests potential risks that need monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.28B	4.32B	4.37B	4.38B	4.80B	4.79B
Gross Profit	3.03B	3.02B	3.13B	2.98B	3.33B	3.38B
EBITDA	397.17M	339.12M	383.00M	-143.00M	330.96M	544.24M
Net Income	243.06M	158.78M	162.48M	-469.05M	-8.36M	286.37M
Balance Sheet
Total Assets	6.43B	5.48B	6.20B	6.28B	7.14B	7.15B
Cash, Cash Equivalents and Short-Term Investments	2.82B	1.58B	4.90B	4.82B	5.42B	5.41B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	582.14M	514.58M	525.21M	531.83M	622.81M	515.85M
Stockholders Equity	5.85B	4.96B	5.68B	5.75B	6.52B	6.63B
Cash Flow
Free Cash Flow	0.00	232.16M	234.33M	-424.54M	52.53M	498.00M
Operating Cash Flow	0.00	262.68M	302.08M	-365.86M	195.75M	604.14M
Investing Cash Flow	0.00	-2.40B	-67.31M	43.25M	134.28M	-355.83M
Financing Cash Flow	0.00	-1.14B	-169.47M	-297.72M	-88.96M	4.89M

Zappallas, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 405.00
• 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:3770, the sentiment is Positive. The current price of 405 is below the 20-day moving average (MA) of 419.20, above the 50-day MA of 398.48, and above the 200-day MA of 373.03, indicating a neutral trend. The MACD of -2.18 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 25.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3770.

Zappallas, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3930	76 Outperform	¥4.23B	14.75		―	19.99%	4285.55%
3770	72 Outperform	¥3.96B	29.49		1.23%	-1.29%	-4.45%
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%
3691	54 Neutral	¥5.83B	3,633.15		―	8.29%	26.77%
3645	51 Neutral	¥2.86B	―		0.92%	15.64%	-1211.95%
3674	49 Neutral	¥4.02B	51.40		―	0.72%	-130.43%
2454	45 Neutral	¥5.65B	79.73		0.74%	6.36%	―