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

• Market Cap: ¥3.34B
• Dividend Yield: N/A
• Average Volume (3M): 2.99K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.69
• Revenue Growth: 3.25%
• EPS Growth: N/A
• Country: JP
• Employees: 149
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 72.58
• Shares Outstanding: 4,749,860
• 10 Day Avg. Volume: 2,830
• 30 Day Avg. Volume: 2,993
• PEG Ratio: -0.39
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.06
• 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: ¥735.00
• Price Target Upside: 4.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ¥734.00 ▲(4.41%Upside)

The overall stock score for ZUU Co., Ltd. reflects stable financial performance, although profitability and cash flow challenges weigh on the score. Technical analysis indicates bearish trends with downward momentum, while valuation is reasonable but lacks dividend appeal. The score is primarily driven by financial performance and technical analysis, with valuation considerations also contributing.

ZUU Co., Ltd. Business Overview & Revenue Model

Company Description

ZUU Co., Ltd. is a Japan-based company primarily engaged in the provision of financial technology services. It operates in the digital transformation of the finance sector, offering a range of services such as financial advisory platforms, online media for financial information, and investment management tools. The company caters to individual investors and financial institutions seeking to enhance their financial literacy and investment strategies.

How the Company Makes Money

ZUU Co., Ltd. generates revenue through a combination of subscription fees, advertising, and partnerships. It charges subscription fees to individual users and financial institutions for premium access to its financial advisory platforms and investment tools. Additionally, it earns advertising revenue by offering advertising space on its online media platforms, which are visited by users seeking financial information and advice. The company also engages in strategic partnerships with financial institutions, providing tailored services and solutions, which contribute to its revenue streams.

ZUU Co., Ltd. Financial Statement Overview

Summary

ZUU Co., Ltd. shows solid revenue growth and efficient cost management, with a strong balance sheet and low leverage. However, profitability margins are low, and the cash flow is weak, with negative free cash flow posing a risk to liquidity.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.03B	2.99B	2.90B	3.40B	3.38B	2.79B
Gross Profit	2.08B	1.96B	1.90B	2.43B	2.43B	2.10B
EBITDA	41.05M	727.89M	33.41M	190.21M	-252.45M	-169.44M
Net Income	-168.29M	120.10M	-45.16M	90.03M	-230.72M	-300.09M
Balance Sheet
Total Assets	11.75B	9.65B	9.33B	3.07B	2.01B	2.05B
Cash, Cash Equivalents and Short-Term Investments	2.53B	2.62B	1.72B	1.49B	1.04B	1.25B
Total Debt	392.00M	297.18M	260.48M	125.67M	19.17M	19.17M
Total Liabilities	5.20B	3.35B	4.41B	1.71B	811.05M	657.02M
Stockholders Equity	1.07B	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	2.70B	-3.09B	-106.64M	-88.56M	-275.00K
Financing Cash Flow	0.00	-1.19B	3.31B	154.28M	56.60M	691.20M

ZUU Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 703.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 703 is below the 20-day moving average (MA) of 707.90, below the 50-day MA of 715.96, and below the 200-day MA of 749.63, indicating a neutral trend. The MACD of -1.58 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	¥3.70B	17.99		1.72%	-0.64%	-36.11%
Sector *	63 Neutral	$34.16B	5.78	-11.85%	1.82%	5.31%	-18.32%
4484	61 Neutral	¥3.62B	20.30		―	-1.85%	122.23%
4387	59 Neutral	¥3.34B	28.12		―	3.25%	―
4014	59 Neutral	¥3.53B	51.41		―	-33.91%	90.57%
3909	56 Neutral	¥3.44B	14.08		―	13.97%	―
4174	52 Neutral	¥3.11B	77.18		2.15%	9.30%	-109.29%