Zoom Corp. (6694) AI Stock Analysis

• Market Cap: ¥2.91B
• Dividend Yield: 4.53%
• Average Volume (3M): 5.71K
• Price to Earnings (P/E): 72.8
• Beta (1Y): 0.27
• Revenue Growth: -1.04%
• EPS Growth: -163.70%
• Country: JP
• Employees: 200
• Sector: Technology
• Sector Strength: 91
• Industry: Consumer Electronics
• EPS (TTM): -41.90
• Shares Outstanding: 4,594,824
• 10 Day Avg. Volume: 7,910
• 30 Day Avg. Volume: 5,710
• PEG Ratio: 0.16
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥671.00
• Price Target Upside: -1.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥697.00 ▲(1.90%Upside)

The overall score reflects a solid financial foundation with consistent revenue growth but highlights profitability challenges and declining return on equity. Technical indicators show mixed signals, with a lack of strong directional momentum. The negative P/E ratio raises concerns, although the attractive dividend yield provides some compensation. This mixed picture suggests cautious optimism, with a need for attention to profitability improvements.

Zoom Corp. Business Overview & Revenue Model

Company Description

Zoom Corp. (6694) is a Japan-based company that operates primarily in the field of designing, developing, and manufacturing electronic devices. The company is renowned for its innovative audio equipment, including multi-effects processors for guitarists and vocalists, digital recorders, and other audio interfaces. Zoom Corp. caters to a global market, providing solutions that enhance the musical and audio production experience for both amateur and professional users.

How the Company Makes Money

Zoom Corp. generates revenue through the sale of its audio equipment and electronic devices. Key revenue streams include the direct sale of products such as guitar effects processors, digital recorders, and audio interfaces through various channels including retail partners, online platforms, and direct sales. The company also engages in strategic partnerships and collaborations with other technology firms to enhance product offerings and expand market reach. Additionally, Zoom Corp. invests in research and development to innovate and maintain competitive advantage, which indirectly supports its revenue by ensuring product relevance and customer satisfaction.

Zoom Corp. Financial Statement Overview

Summary

Zoom Corp. demonstrates a solid financial foundation with consistent revenue growth and effective cash management. However, recent profitability challenges and declining return on equity suggest areas for improvement. The balance sheet remains balanced, providing a stable platform for future growth.

Income Statement

The company has shown consistent revenue growth over the years, with a minor dip in net income recently. Gross profit margin is solid at approximately 38.36%, but the net profit margin is relatively low at 0.22% due to rising costs impacting profitability. EBIT and EBITDA margins indicate operational efficiency improvements, though margins have tightened compared to earlier periods.

Balance Sheet

The balance sheet is stable, with a moderate debt-to-equity ratio of 1.14, indicating a balanced approach to leveraging. The equity ratio stands at 35.67%, showing a healthy level of equity financing. Return on equity has declined to 0.56%, reflecting pressure on net income growth.

Cash Flow

Operating cash flow has decreased significantly over the years, affecting the free cash flow growth rate. However, the company maintains positive free cash flow, which is a good sign. The free cash flow to net income ratio is strong, indicating effective cash management relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.88B	18.07B	17.90B	13.24B	13.42B	10.42B
Gross Profit	6.80B	6.93B	7.07B	5.22B	5.70B	4.29B
EBITDA	1.23B	1.45B	1.54B	1.18B	1.65B	974.13M
Net Income	-63.76M	40.88M	88.95M	377.54M	854.08M	502.85M
Balance Sheet
Total Assets	18.58B	20.09B	19.26B	13.65B	10.83B	10.20B
Cash, Cash Equivalents and Short-Term Investments	2.90B	3.32B	2.85B	2.17B	2.07B	2.73B
Total Debt	7.85B	8.16B	7.93B	3.73B	2.55B	2.71B
Total Liabilities	10.54B	11.47B	11.34B	7.06B	4.92B	5.06B
Stockholders Equity	6.56B	7.17B	6.66B	6.49B	5.84B	5.12B
Cash Flow
Free Cash Flow	0.00	346.10M	588.09M	-853.74M	408.26M	795.78M
Operating Cash Flow	0.00	584.57M	817.10M	-586.56M	637.06M	990.10M
Investing Cash Flow	0.00	-241.61M	-2.44B	-175.71M	-478.30M	-1.27B
Financing Cash Flow	0.00	15.11M	2.23B	726.05M	-937.05M	716.06M

Zoom Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 684.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6694, the sentiment is Positive. The current price of 684 is above the 20-day moving average (MA) of 650.75, above the 50-day MA of 651.38, and above the 200-day MA of 664.69, indicating a bullish trend. The MACD of 3.73 indicates Negative momentum. The RSI at 64.46 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6694.

Zoom Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	80 Outperform	¥35.16B	9.03		5.06%	12.38%	68.86%
6632	73 Outperform	¥173.75B	8.52	16.78%	1.74%	3.02%	60.53%
2469	71 Outperform	¥22.97B	13.40		2.58%	17.79%	5.73%
6952	69 Neutral	$268.86B	33.51	3.45%	3.81%	-2.63%	-31.17%
Sector *	69 Neutral	¥229.01B	14.09	7.50%	2.69%	9.25%	8.21%
6810	68 Neutral	¥79.08B	19.72		2.72%	0.52%	-44.10%
6694	60 Neutral	¥2.91B	72.82		4.53%	-1.04%	-163.70%

Zoom Corp. Corporate Events

Zoom Corporation Reports Q1 2025 Financial Results

Zoom Corporation reported a decline in its financial performance for the first quarter of 2025, with net sales dropping by 4.8% and a notable decrease in profits compared to the previous year. Despite this, the company remains optimistic about its full-year forecast, projecting a modest increase in net sales and a significant improvement in profitability, indicating strategic adjustments to enhance its market position.