Zoom Corp. (6694) AI Stock Analysis

• Market Cap: ¥2.73B
• Dividend Yield: 4.84%
• Average Volume (3M): 6.31K
• Price to Earnings (P/E): 72.8
• Beta (1Y): 0.22
• Revenue Growth: 0.11%
• EPS Growth: 33.24%
• Country: JP
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -54.62
• Shares Outstanding: 4,594,824
• 10 Day Avg. Volume: 3,210
• 30 Day Avg. Volume: 6,313
• 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: ¥653.00
• Price Target Upside: 1.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ¥653.00 ▲(1.56% Upside)

The overall stock score of 55 reflects the company's steady revenue growth and efficient cost management, but significant challenges in profitability and cash flow generation weigh heavily. The technical analysis indicates a bearish trend, and the negative P/E ratio raises valuation concerns, though the high dividend yield offers some compensation. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Zoom Corp. Business Overview & Revenue Model

Company Description

Zoom Corp. (6694) is a Japanese company primarily engaged in the development, manufacturing, and sale of electronic devices and equipment. The company is renowned for its innovative audio and video recording equipment, including professional audio recorders, effects processors, drum machines, and samplers. Their products cater to a wide range of customers, from amateur musicians to professional audio engineers and videographers, enhancing creative capabilities in music and multimedia production.

How the Company Makes Money

Zoom Corp. generates revenue primarily through the sale of its electronic devices and equipment. The company designs and manufactures a variety of audio and video products, which are distributed globally through a network of retailers and distributors. Key revenue streams include sales of audio interfaces, mixers, and recording devices, which are popular in the music and entertainment industries. Additionally, Zoom Corp. may engage in strategic partnerships and collaborations to expand its market reach and innovate its product offerings, thereby contributing to its earnings. The company focuses on maintaining a strong brand presence and investing in research and development to stay competitive in the rapidly evolving electronics market.

Zoom Corp. Financial Statement Overview

Summary

Zoom Corp. shows steady revenue growth and efficient cost management, but faces challenges in maintaining profitability and cash flow generation. The balance sheet reflects a stable capital structure with moderate leverage, yet declining ROE suggests inefficiencies. Overall, the company demonstrates resilience but needs to address profitability and cash flow concerns to enhance financial health.

Income Statement

Zoom Corp. has demonstrated steady revenue growth with a 0.95% increase in the latest year. The gross profit margin stands at 38.34%, indicating efficient cost management. However, the net profit margin has decreased to 0.23%, reflecting challenges in maintaining profitability. The EBIT margin is 2.94%, and the EBITDA margin is 8.04%, both showing a decline from previous years, suggesting increased operational costs.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.14, indicating a balanced approach to leveraging. Return on equity has decreased to 0.57%, highlighting reduced profitability relative to shareholder equity. The equity ratio is 35.67%, showing a stable capital structure, but the decline in ROE suggests potential inefficiencies in asset utilization.

Cash Flow

Free cash flow has decreased significantly by 41.15%, indicating potential challenges in generating cash. The operating cash flow to net income ratio is 14.30, suggesting strong cash generation relative to net income, but the free cash flow to net income ratio of 8.47 indicates a decline in cash available after capital expenditures.

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	1.26B	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: Neutral
• Last Price: 643.00
• 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:6694, the sentiment is Neutral. The current price of 643 is above the 20-day moving average (MA) of 639.10, below the 50-day MA of 654.64, and below the 200-day MA of 658.75, indicating a neutral trend. The MACD of -3.01 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 42.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6694.

Zoom Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	79 Outperform	50.76B	12.10	7.20%	2.63%	9.24%	23.83%
2469	71 Outperform	26.99B	13.21	15.07%	2.20%	16.63%	7.86%
6632	70 Outperform	177.52B	9.74	16.21%	1.27%	0.31%	23.47%
6952	69 Neutral	284.13B	50.84	3.68%	3.61%	-4.66%	-61.05%
6810	57 Neutral	91.96B	26.86	4.48%	2.34%	0.31%	-50.17%
6694	55 Neutral	¥2.73B	72.82		4.84%	0.11%	33.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Zoom Corp. Corporate Events

Zoom Corp Revises Financial Forecasts Amid U.S. Market Challenges

Zoom Corporation has revised its consolidated financial forecasts for the fiscal year ending December 31, 2025, due to unexpected tariffs and economic uncertainty in the U.S., its largest market. The company anticipates a decrease in revenue and profits, with a projected net loss of ¥220 million. Despite these challenges, Zoom plans to maintain its dividend policy, supported by strong performance in the European market and cost reduction efforts.

Zoom Corporation Announces Executive Pay Cuts Amid Financial Forecast Revision

Zoom Corporation announced a reduction in executive compensation following a downward revision of its consolidated financial forecasts for the current fiscal year. This decision reflects the company’s commitment to management accountability, with reductions ranging from 20% to 30% for key executives, effective from August to December 2025.

Zoom Corporation Reports Decline in First Half 2025 Financial Performance

Zoom Corporation reported a decline in its financial performance for the first half of 2025, with net sales decreasing by 3% and a significant drop in profits compared to the previous year. The company has revised its full-year forecast, indicating a challenging market environment and potential impacts on stakeholders.