ZUU Co., Ltd. (4387) AI Stock Analysis

• Market Cap: ¥3.20B
• Dividend Yield: N/A
• Average Volume (3M): 8.22K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.66
• Revenue Growth: -4.34%
• EPS Growth: -1012.18%
• Country: JP
• Employees: 149
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -49.57
• Shares Outstanding: 4,749,860
• 10 Day Avg. Volume: 13,450
• 30 Day Avg. Volume: 8,220
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥726.00
• Price Target Upside: 7.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ¥726.00 ▲(7.88% Upside)

ZUU Co., Ltd.'s overall stock score is primarily impacted by weak financial performance due to negative cash flow and low profitability margins. Technical analysis indicates a bearish trend with weak momentum. Valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a below-average stock score.

ZUU Co., Ltd. Business Overview & Revenue Model

Company Description

ZUU Co., Ltd. is a Japanese company specializing in financial technology and media services. The company operates through various segments, focusing primarily on delivering financial information, educational content, and related services to both individual and corporate clients. It provides platforms for personal finance management and offers consulting services, aiming to empower users with reliable financial insights and tools to make informed decisions.

How the Company Makes Money

ZUU Co., Ltd. generates revenue through multiple streams, primarily from its financial content and services. The company earns money by offering subscription-based access to its financial platforms and content, which include educational resources and financial analysis tools. Additionally, ZUU engages in advertising and affiliate marketing partnerships, leveraging its media platforms to generate earnings from advertisers and financial service providers. The company also offers consulting services to corporate clients, providing tailored solutions and advice, which serves as another significant revenue stream.

ZUU Co., Ltd. Financial Statement Overview

Summary

ZUU Co., Ltd. shows positive revenue growth and a healthy gross profit margin, indicating efficient cost management. However, low net profit and EBIT margins highlight challenges in converting revenue into profit. The balance sheet is strong with low leverage, but cash flow performance is weak with negative free cash flow, posing a liquidity risk.

Income Statement

ZUU Co., Ltd. exhibited a positive revenue growth rate with an increase in total revenue from the previous year. The gross profit margin remains healthy, indicating efficient cost management. However, the net profit margin and EBIT margin are relatively low, suggesting challenges in converting revenue into actual profit. The EBITDA margin improved significantly, indicating better operational efficiency compared to previous periods.

Balance Sheet

The company maintains a strong equity position with a favorable equity ratio, indicating financial stability and lower reliance on debt. The debt-to-equity ratio is low, which is a positive sign for leverage management. Return on equity has improved, reflecting better utilization of equity to generate profits. However, the overall asset base has grown rapidly, which may impact future returns.

Cash Flow

ZUU Co., Ltd. faced negative free cash flow growth, which is a concern for cash generation capability. The operating cash flow to net income ratio is negative, indicating that the company is not effectively converting its earnings into cash. Additionally, while the free cash flow to net income ratio is also negative, it reflects the challenges in maintaining liquidity despite operational improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.99B	2.99B	2.90B	3.40B	3.38B	2.79B
Gross Profit	1.96B	1.96B	1.90B	2.43B	2.43B	2.10B
EBITDA	28.73M	727.89M	33.41M	190.21M	-252.45M	-169.44M
Net Income	120.73M	120.10M	-45.16M	90.03M	-230.72M	-300.09M
Balance Sheet
Total Assets	9.65B	9.65B	9.33B	3.07B	2.01B	2.05B
Cash, Cash Equivalents and Short-Term Investments	2.62B	2.62B	1.72B	1.49B	1.04B	1.25B
Total Debt	297.18M	297.18M	260.48M	125.67M	19.17M	19.17M
Total Liabilities	3.35B	3.35B	4.41B	1.71B	811.05M	657.02M
Stockholders Equity	1.39B	1.39B	1.30B	1.34B	1.19B	1.39B
Cash Flow
Free Cash Flow	0.00	-773.81M	87.93M	399.88M	-194.26M	211.11M
Operating Cash Flow	0.00	-737.65M	120.56M	409.85M	-186.42M	231.06M
Investing Cash Flow	0.00	-564.03M	-3.09B	-106.64M	-88.56M	-275.00K
Financing Cash Flow	0.00	2.08B	3.31B	154.28M	56.60M	691.20M

ZUU Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 673.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4387, the sentiment is Negative. The current price of 673 is below the 20-day moving average (MA) of 692.80, below the 50-day MA of 706.18, and below the 200-day MA of 742.49, indicating a bearish trend. The MACD of -8.60 indicates Positive momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 35.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4387.

ZUU Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4447	72 Outperform	3.89B	20.10	17.81%	1.64%	42.88%	-5.21%
4484	61 Neutral	5.17B	33.08	―	―	1.83%	-20.00%
4174	55 Neutral	2.99B	102.26	1.92%	3.08%	16.83%	-86.95%
4387	53 Neutral	¥3.20B	28.12	―	―	-4.34%	-1012.18%
3909	51 Neutral	3.32B	11.02	-93.23%	―	-8.20%	―
4014	51 Neutral	3.15B	-42.44	―	―	-42.11%	-188.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%