ZETT CORP. (8135) AI Stock Analysis

• Market Cap: ¥10.10B
• Dividend Yield: 3.96%
• Average Volume (3M): 20.40K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.63
• Revenue Growth: 7.77%
• EPS Growth: 247.26%
• Country: JP
• Employees: 584
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 7.74
• Shares Outstanding: 20,102,000
• 10 Day Avg. Volume: 24,910
• 30 Day Avg. Volume: 20,400
• PEG Ratio: 0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 4.05
• 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: 81 Outperform
• Price Target: ¥596.00 ▲(17.32% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by strong financial performance (profitability, growth, low leverage, and solid cash generation). Technicals add support due to a strong uptrend, but near-overbought momentum indicators limit upside in the score. Valuation is supportive with a moderate P/E and a healthy dividend yield.

Positive Factors

Strong balance sheet and low leverage

Conservative leverage and a healthy equity ratio give ZETT durable financial flexibility. Low debt reduces refinancing and interest risk, supporting capital spending, dividends, or buybacks and enabling resilience through downturns over the next 2–6 months.

Improving cash generation and FCF

Rising free cash flow and strong OCF-to-net-income conversion indicate the company can fund operations, capex and shareholder returns from operations. Improved cash conversion sustains investment and reduces dependence on external financing.

Consistent revenue growth and margin expansion

Sustained top-line growth alongside margin improvement points to durable demand and better cost structure. Expanding gross and net margins signal operational leverage that can translate into persistent profit growth and higher cash generation.

Negative Factors

Large negative EPS growth

A steep year-over-year EPS decline signals earnings volatility or one-off pressures that can constrain retained earnings and management flexibility. Persistent EPS weakness would limit reinvestment and dividend sustainability over the coming months.

Cyclical industry exposure (Leisure)

Operating in the leisure sector exposes revenues and margins to consumer spending cycles and macro swings. Even with good fundamentals, demand downturns can quickly affect bookings and pricing power, raising medium-term revenue volatility risk.

Relatively low trading liquidity

Modest average trading volume can limit institutional participation, increase bid-ask spreads and make large share transactions disruptive. Lower liquidity may impair efficient capital raising and deter some longer-term investors.

ZETT CORP. Business Overview & Revenue Model

Company Description

Zett Corporation manufactures, sells, imports, and exports sports equipment in Japan. The company offers baseballs, basketball wear, bats, and other apparel products. It also operates Alcanet, an online ordering system to search and order products from approximately 3,000 dealers. The company was formerly known as Watanabe Corporation and changed its name to Zett Corporation in 1980. Zett Corporation was founded in 1919 and is headquartered in Osaka, Japan.

How the Company Makes Money

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ZETT CORP. Financial Statement Overview

Summary

Strong, improving profitability and revenue growth (income statement score 85), a conservatively levered and high-quality balance sheet with low debt and strong ROE (balance sheet score 88), and solid cash conversion with improving free cash flow (cash flow score 83).

Income Statement

ZETT CORP. has demonstrated strong performance in the income statement with notable revenue growth, especially in the last fiscal year. The Gross Profit Margin and Net Profit Margin have shown consistent improvement, indicating efficient cost management and profitability. The EBIT and EBITDA margins suggest robust operational efficiency. The Revenue Growth Rate is commendable, reflecting the company's ability to expand its market presence effectively.

Balance Sheet

The balance sheet exhibits a strong financial position with a low Debt-to-Equity Ratio, indicating conservative leverage and low financial risk. Return on Equity is impressive, showcasing the company's ability to generate profits from shareholders' investments. The Equity Ratio is healthy, highlighting a robust capital structure with a significant proportion of assets financed by equity.

Cash Flow

ZETT CORP. has shown significant improvement in cash flow metrics, with substantial Free Cash Flow growth, reflecting effective cash management. The Operating Cash Flow to Net Income Ratio is strong, indicating efficient conversion of earnings into cash. The Free Cash Flow to Net Income Ratio further reinforces the company's ability to generate cash from its operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	56.24B	55.31B	51.96B	49.89B	44.76B	37.61B
Gross Profit	9.63B	9.46B	9.12B	9.16B	8.37B	6.86B
EBITDA	1.19B	4.36B	1.17B	1.35B	957.00M	16.89M
Net Income	2.85B	2.99B	810.00M	905.00M	723.00M	109.00M
Balance Sheet
Total Assets	32.31B	32.76B	29.54B	28.86B	25.31B	23.00B
Cash, Cash Equivalents and Short-Term Investments	9.60B	9.08B	6.31B	6.23B	5.17B	5.14B
Total Debt	1.16B	47.00M	241.00M	325.00M	531.00M	738.00M
Total Liabilities	17.94B	18.20B	16.23B	15.93B	14.12B	13.08B
Stockholders Equity	14.37B	14.55B	13.30B	12.93B	11.19B	9.92B
Cash Flow
Free Cash Flow	0.00	2.00B	555.00M	1.38B	313.00M	1.09B
Operating Cash Flow	0.00	2.05B	684.00M	1.47B	437.00M	1.24B
Investing Cash Flow	0.00	890.00M	-332.00M	-86.00M	-137.00M	-138.00M
Financing Cash Flow	0.00	-383.00M	-277.00M	-336.00M	-281.00M	558.00M

ZETT CORP. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 508.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8135, the sentiment is Negative. The current price of 508 is below the 20-day moving average (MA) of 558.35, below the 50-day MA of 551.68, and above the 200-day MA of 474.75, indicating a neutral trend. The MACD of -6.25 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8135.

ZETT CORP. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7608	82 Outperform	¥14.93B	9.00	―	2.37%	―	―
8135	81 Outperform	¥10.10B	16.36	―	3.96%	7.77%	247.26%
7847	75 Outperform	¥4.13B	8.35	―	4.78%	-11.24%	-48.52%
7809	70 Outperform	¥11.75B	10.36	―	2.70%	9.10%	27.73%
7841	62 Neutral	¥10.66B	17.30	―	3.31%	3.14%	-40.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7865	46 Neutral	¥1.59B	-12.05	―	―	―	―