Zuiko Corporation (6279) AI Stock Analysis

• Market Cap: ¥25.63B
• Dividend Yield: 1.02%
• Average Volume (3M): 39.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -1.44%
• EPS Growth: -108.44%
• Country: JP
• Employees: 583
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): -1.59
• Shares Outstanding: 28,800,000
• 10 Day Avg. Volume: 65,000
• 30 Day Avg. Volume: 39,110
• PEG Ratio: 0.18
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -74.94
• 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: 50 Neutral
• Price Target: ¥1,003.00 ▲(2.87%Upside)

Zuiko Corporation's stock score is affected primarily by its financial challenges, including negative profit margins and declining revenue. Technical indicators provide mixed signals, with no strong trends emerging. The valuation is hindered by a high negative P/E ratio and low dividend yield, reflecting current financial difficulties.

Zuiko Corporation Business Overview & Revenue Model

Company Description

Zuiko Corporation (6279) is a Japanese company primarily engaged in the manufacturing and sale of machinery and equipment. The company specializes in producing advanced production systems, particularly for the hygiene and medical sectors. Zuiko is known for its innovative technology in the production of disposable diapers, sanitary napkins, and face masks, catering to both domestic and international markets.

How the Company Makes Money

Zuiko Corporation generates revenue through the sale of its high-tech machinery and equipment designed for the production of hygienic and medical products. The company's key revenue streams include the manufacture and sale of production lines for disposable hygiene products like diapers and sanitary napkins. Additionally, Zuiko provides maintenance services and technological support for its equipment, offering comprehensive solutions that enhance customer loyalty and recurring income. Significant partnerships with leading global consumer goods companies also contribute to its earnings, as these collaborations facilitate the adoption of Zuiko's machinery in large-scale production settings.

Zuiko Corporation Financial Statement Overview

Summary

Zuiko Corporation faces challenges in revenue and profitability, as indicated by negative growth rates and profit margins. The balance sheet remains strong with low leverage and high equity, though the decline in ROE signals inefficiencies. Cash flow management shows some recovery, but operational efficiency and profitability need improvement.

Income Statement

Zuiko Corporation has faced a decline in its financial performance. The Gross Profit Margin has decreased from 21.2% in 2024 to 13.3% in 2025, indicating declining efficiency. The Net Profit Margin has turned negative at -3.95% in 2025, down from 6.34% in 2024, reflecting significant profitability challenges. Revenue Growth Rate from 2024 to 2025 was -8.2%, indicating declining sales. The EBIT Margin has dropped to -1.54%, and EBITDA Margin to 6.93% in 2025, signaling operational inefficiencies.

Balance Sheet

Zuiko Corporation maintains a strong equity position with a relatively low Debt-to-Equity Ratio of 0.22 in 2025, suggesting low leverage and financial stability. However, the Return on Equity has decreased significantly to -2.3% in 2025, indicating inefficiencies in generating returns for shareholders. The Equity Ratio remains strong at 65.4%, reflecting a solid financial foundation.

Cash Flow

The company shows mixed cash flow results with an Operating Cash Flow to Net Income Ratio of -1.38 in 2025, indicating cash generation issues from operations. However, Free Cash Flow has improved to 460.97 million JPY from a negative position in the previous year, reflecting improvements in cash management. The Free Cash Flow to Net Income Ratio stands at -0.58, highlighting ongoing challenges in converting profits into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.71B	19.95B	21.74B	26.51B	23.58B	23.09B
Gross Profit	4.60B	2.64B	4.61B	5.75B	5.34B	4.45B
EBITDA	2.85B	1.38B	2.85B	4.33B	2.97B	2.55B
Net Income	408.89M	-788.08M	1.38B	2.67B	1.74B	1.62B
Balance Sheet
Total Assets	50.68B	52.38B	49.27B	49.64B	50.21B	42.33B
Cash, Cash Equivalents and Short-Term Investments	15.58B	15.32B	14.48B	14.03B	13.85B	10.53B
Total Debt	7.60B	7.57B	7.53B	7.77B	8.02B	5.03B
Total Liabilities	17.16B	18.12B	14.52B	16.55B	20.16B	14.84B
Stockholders Equity	33.51B	34.25B	34.75B	33.09B	30.06B	27.48B
Cash Flow
Free Cash Flow	628.62M	460.96M	-676.82M	-334.50M	-89.00M	-6.38B
Operating Cash Flow	628.62M	1.09B	-322.68M	388.05M	2.25B	1.82B
Investing Cash Flow	0.00	1.14B	1.12B	-1.37B	-1.42B	-10.00B
Financing Cash Flow	0.00	-772.27M	-1.06B	-822.86M	2.48B	4.66B

Zuiko Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 975.00
• 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:6279, the sentiment is Negative. The current price of 975 is below the 20-day moving average (MA) of 1016.05, below the 50-day MA of 1006.98, and below the 200-day MA of 1177.73, indicating a bearish trend. The MACD of -3.96 indicates Positive momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 22.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6279.

Zuiko Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6137	81 Outperform	¥29.29B	7.63		3.33%	7.43%	18.47%
7525	78 Outperform	¥25.21B	8.79		5.71%	10.00%	2.09%
6144	77 Outperform	¥28.25B	12.03		4.49%	4.40%	18.82%
6125	71 Outperform	¥31.08B	14.23		3.37%	-12.88%	-70.22%
6405	71 Outperform	¥22.40B	15.32		2.08%	7.26%	28.17%
Sector *	65 Neutral	$10.75B	15.69	5.29%	1.89%	3.09%	-27.41%
6279	50 Neutral	¥25.63B	―		1.02%	-1.44%	-108.44%

Zuiko Corporation Corporate Events

Zuiko Corporation Expands into Spunlace Nonwoven Fabric Market

Zuiko Corporation’s subsidiary, Cotex Corporation, has entered into a basic agreement to acquire the spunlace nonwoven fabric business from Unitika Ltd. This strategic move aligns with Zuiko’s medium-term business plan to diversify and enhance its product offerings in the hygiene sector. By acquiring Unitika’s spunlace nonwoven fabric business, Zuiko aims to leverage its expertise in cotton products to expand its market presence domestically and internationally, ultimately improving profitability and product value.

Zuiko Corporation Reports Increased Sales Amidst Reduced Losses and Positive Outlook

Zuiko Corporation reported a significant increase in net sales by 34% for the three months ended May 20, 2025, compared to the same period last year. Despite this growth, the company faced operating and ordinary losses, though these were reduced compared to the previous year. The company anticipates a positive outlook for the fiscal year ending February 20, 2026, with expected increases in net sales and profits, indicating a potential recovery and growth trajectory.

Zuiko Corporation Completes Treasury Shares Disposal for Stock Compensation

Zuiko Corporation has completed the payment procedures for the disposal of 15,200 treasury shares as restricted stock compensation, as previously announced. This move is part of the company’s strategy to manage its equity distribution and compensate its directors, potentially impacting its financial structure and stakeholder interests.

Zuiko Corporation Announces Treasury Share Disposal for Director Compensation

Zuiko Corporation announced the disposal of 15,200 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and aligning their interests with shareholders. This move is expected to enhance corporate value and ensure sustainable growth, with the shares being allocated to directors who will contribute their monetary compensation claims as part of the plan.

Zuiko Corporation Announces Change in Certified Public Accountant

Zuiko Corporation has announced a change in its certified public accountant, transitioning from Ernst & Young ShinNihon LLC to Grant Thornton Taiyo LLC, effective May 16, 2025. This decision was driven by the expiration of the current auditor’s term and a comprehensive assessment of audit fees and firm capabilities, aiming to bring new perspectives to their audit processes.