ZETT CORP. (8135) AI Stock Analysis

• Market Cap: ¥9.20B
• Dividend Yield: 3.96%
• Average Volume (3M): 20.40K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.68
• 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: ¥543.00 ▲(6.89% 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

Conservative balance sheet

A low debt-to-equity ratio, healthy equity ratio and strong ROE reduce financial risk and preserve strategic flexibility. Over 2-6 months this supports sustained investment, capacity to weather shocks, lower financing costs and the ability to pursue opportunistic M&A or capex without stressing liquidity.

Improving cash generation

Material free cash flow improvement and strong operating cash conversion indicate durable cash generation. This underpins sustainable dividends, deleveraging or reinvestment, and reduces reliance on external funding—strengthening the firm's ability to execute strategy through the next several quarters.

Healthy profitability and margin trends

Consistent improvement in gross and net margins alongside revenue growth reflects efficient cost control and operational leverage. Sustained margin expansion supports long-term earnings power, resilience to input cost swings, and the capacity to fund growth initiatives or shareholder returns.

Negative Factors

Sharp EPS decline

A roughly 66% drop in reported EPS signals pronounced earnings volatility or one-off headwinds that could persist. Even with strong cash flow, such EPS weakness may constrain management choices on dividends, hiring or reinvestment and raises execution risk until earnings stability returns.

Moderate revenue growth rate

Mid-single-digit top-line growth suggests the company is expanding but not rapidly. Over a 2-6 month horizon, this pace may limit scalability and make it harder to materially increase market share absent new products, channels, or acceleration in core demand drivers.

Industry cyclicality risk

Operating in the leisure sector exposes revenue and cash flows to economic cycles and discretionary spending swings. Structural cyclicality can amplify downturn impacts on occupancy, sales and margins, requiring stronger buffers and making performance more sensitive to macro conditions over months.

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	9.57B	9.46B	8.98B	9.04B	8.22B	6.72B
EBITDA	1.10B	1.22B	1.02B	1.13B	646.00M	16.18M
Net Income	2.85B	2.99B	810.00M	905.00M	723.00M	109.56M
Balance Sheet
Total Assets	32.31B	32.76B	29.54B	29.09B	25.51B	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	250.00M	272.00M	325.00M	588.00M	862.13M
Total Liabilities	17.94B	18.20B	16.23B	16.15B	14.32B	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	563.00M	1.40B	415.00M	1.11B
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	-138.44M
Financing Cash Flow	0.00	-383.00M	-277.00M	-336.00M	-281.00M	558.87M

ZETT CORP. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 508.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 535.45, below the 50-day MA of 546.60, and above the 200-day MA of 476.55, indicating a bearish trend. The MACD of -19.97 indicates Positive momentum. The RSI at 32.05 is Neutral, neither overbought nor oversold. The STOCH value of 10.59 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
8135	81 Outperform	¥9.20B	16.36	―	3.96%	7.77%	247.26%
7847	75 Outperform	¥4.11B	8.35	―	4.78%	-11.24%	-48.52%
7309	63 Neutral	¥1.41T	42.60	5.92%	1.93%	7.64%	22.13%
7906	62 Neutral	¥282.14B	21.92	15.93%	0.72%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4801	61 Neutral	¥27.71B	14.57	―	1.85%	4.17%	-20.08%
7990	61 Neutral	¥46.82B	11.29	―	3.94%	0.74%	41.25%