Zoom Corp. (6694) AI Stock Analysis

• Market Cap: ¥2.78B
• Dividend Yield: 4.68%
• Average Volume (3M): 6.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 3.64%
• EPS Growth: 37.31%
• Country: JP
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -61.91
• Shares Outstanding: 4,594,824
• 10 Day Avg. Volume: 5,780
• 30 Day Avg. Volume: 6,790
• PEG Ratio: -1.26
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 8.22
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥653.00 ▲(2.83% 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.

Positive Factors

Revenue Growth

Steady revenue growth indicates a strong market position and product demand, supporting long-term business sustainability and expansion.

Cost Management

Efficient cost management helps maintain profitability, allowing the company to reinvest in growth and innovation, enhancing competitive advantage.

Stable Capital Structure

A stable capital structure with moderate leverage supports financial flexibility, enabling the company to navigate market fluctuations and invest in growth.

Negative Factors

Declining Profit Margins

Declining profit margins can strain financial resources, limiting the company's ability to invest in growth and potentially impacting long-term competitiveness.

Cash Flow Challenges

Reduced cash flow limits the company's ability to fund operations and investments, potentially affecting its ability to capitalize on growth opportunities.

Revised Financial Forecasts

Revised forecasts due to external market challenges indicate potential revenue and profit pressures, impacting long-term strategic planning and financial stability.

Zoom Corp. Business Overview & Revenue Model

Company Description

Zoom Corp. (6694) is a technology company specializing in providing communication solutions, primarily through its cloud-based video conferencing platform. The company operates in the information technology sector, focusing on services that facilitate remote communication and collaboration for businesses and individuals. Core products include Zoom Meetings, Zoom Video Webinars, and Zoom Rooms, which cater to various needs ranging from virtual meetings to large-scale webinars and collaborative work environments.

How the Company Makes Money

Zoom Corp. generates revenue primarily through a subscription-based model, offering tiered pricing plans that cater to different user needs, from individual users to large enterprises. Key revenue streams include subscription fees from its various services, such as Zoom Meetings and Zoom Video Webinars, which are billed monthly or annually. Additionally, the company earns revenue from add-on features and services, such as increased cloud storage, enhanced webinar capabilities, and advanced analytics. Partnerships with educational institutions, corporations, and various organizations also contribute significantly to its earnings, as they often enter into bulk licensing agreements. The growing demand for remote communication solutions and the expansion of its user base during and after the COVID-19 pandemic have further enhanced Zoom's revenue potential.

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	17.83B	18.07B	17.90B	13.24B	13.42B	10.42B
Gross Profit	6.60B	6.93B	7.07B	5.22B	5.70B	4.29B
EBITDA	1.14B	1.45B	1.54B	1.18B	1.65B	974.13M
Net Income	-114.40M	40.88M	88.95M	377.54M	854.08M	502.85M
Balance Sheet
Total Assets	18.84B	20.09B	19.26B	13.65B	10.83B	10.20B
Cash, Cash Equivalents and Short-Term Investments	3.32B	3.32B	2.85B	2.17B	2.07B	2.73B
Total Debt	8.08B	8.16B	7.93B	3.73B	2.55B	2.71B
Total Liabilities	10.89B	11.47B	11.34B	7.06B	4.92B	5.06B
Stockholders Equity	6.38B	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: 635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 635 is below the 20-day moving average (MA) of 644.00, above the 50-day MA of 627.57, and above the 200-day MA of 619.15, indicating a bullish trend. The MACD of 8.08 indicates Positive momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 is Neutral, 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
6952	74 Outperform	¥358.98B	18.77	5.53%	3.55%	-5.43%	55.21%
2469	70 Outperform	¥31.74B	14.27	―	2.40%	13.49%	9.05%
6794	69 Neutral	¥65.60B	15.42	―	2.73%	6.41%	16.71%
6632	66 Neutral	¥182.12B	9.85	13.53%	1.34%	0.48%	-1.86%
6810	66 Neutral	¥93.69B	18.88	―	1.99%	3.71%	-3.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6694	55 Neutral	¥2.78B	-15.45	―	4.68%	3.64%	37.31%

Zoom Corp. Corporate Events

Zoom Corporation Reports Financial Results for Nine Months Ending September 2025

Zoom Corporation reported its consolidated financial results for the nine months ending September 30, 2025, showing a slight decline in net sales compared to the previous year. The company experienced losses in operating and ordinary profits, with a significant decrease in profit attributable to owners of the parent. Despite these challenges, Zoom Corporation maintains its forecast for the full fiscal year, indicating a cautious optimism about its future performance.

The most recent analyst rating on (JP:6694) stock is a Hold with a Yen653.00 price target. To see the full list of analyst forecasts on Zoom Corp. stock, see the JP:6694 Stock Forecast page.