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

• Market Cap: ¥2.84B
• Dividend Yield: N/A
• Average Volume (3M): 14.59K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.68
• 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: 17,220
• 30 Day Avg. Volume: 14,593
• PEG Ratio: -0.09
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -4.90
• 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: ¥726.00
• Price Target Upside: 21.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ¥726.00 ▲(21.40% 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. (4387) is a leading financial technology company based in Japan, specializing in providing digital solutions for the financial services sector. The company operates primarily in the fintech sector, offering a range of products and services that include investment management platforms, financial advisory tools, and data analytics services aimed at enhancing user experience and operational efficiency for financial institutions and individual investors.

How the Company Makes Money

ZUU Co., Ltd. generates revenue through multiple streams, primarily by offering subscription-based services for its investment management and financial advisory platforms. The company charges financial institutions for access to its proprietary technology, which helps streamline their operations and improve customer engagement. Additionally, ZUU earns revenue through transaction fees associated with trades executed on its platforms and through partnerships with banks and asset management firms that utilize its services to enhance their product offerings. The company's continuous investment in technology and data analytics also allows it to offer premium services and insights to clients, further contributing to its revenue.

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	2.84B	2.99B	2.90B	3.40B	3.38B	2.79B
Gross Profit	1.76B	1.96B	1.90B	2.43B	2.43B	2.10B
EBITDA	-211.50M	727.89M	33.41M	190.21M	-252.45M	-169.44M
Net Income	-113.72M	120.10M	-45.16M	90.03M	-230.72M	-300.09M
Balance Sheet
Total Assets	9.31B	9.65B	9.33B	3.07B	2.01B	2.05B
Cash, Cash Equivalents and Short-Term Investments	1.94B	2.62B	1.72B	1.49B	1.04B	1.25B
Total Debt	566.75M	297.18M	260.48M	125.67M	19.17M	19.17M
Total Liabilities	2.45B	3.35B	4.41B	1.71B	811.05M	657.02M
Stockholders Equity	1.22B	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: 598.00
• 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 598 is below the 20-day moving average (MA) of 630.50, below the 50-day MA of 675.04, and below the 200-day MA of 735.47, indicating a bearish trend. The MACD of -25.46 indicates Positive momentum. The RSI at 36.14 is Neutral, neither overbought nor oversold. The STOCH value of 30.09 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	62 Neutral	¥3.28B	16.93	―	3.89%	42.88%	-5.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4484	61 Neutral	¥4.84B	31.00	―	―	1.83%	-20.00%
4174	55 Neutral	¥2.88B	98.54	―	3.20%	16.83%	-86.95%
4387	53 Neutral	¥2.84B	28.12	―	―	-4.34%	-1012.18%
3909	51 Neutral	¥3.15B	10.45	―	―	-8.20%	―
4014	51 Neutral	¥2.77B	51.41	―	―	-42.11%	-188.50%