Very Low Leverage / Strong Equity BaseExtremely low leverage and an 87.24% equity ratio provide durable financial resilience. This structural strength lowers bankruptcy risk, preserves borrowing optionality, and gives management capacity to invest or weather downturns without relying on external financing, aiding multi-month stability.

High Gross ProfitabilityA 44.3% gross margin indicates lasting operational pricing power or a favorable cost base in core distribution activities. High gross profitability creates a buffer to absorb SG&A volatility and input-cost shocks, supporting margin preservation and cash generation over the medium term.

Positive Operating Margins (EBIT/EBITDA)Double-digit EBIT/EBITDA margins reflect an inherently profitable operating model after core costs. Sustained mid-teens/low-double-digit operating margins support recurring cash flows, enabling reinvestment or shareholder returns and indicating structural efficiency in the business model.

Bears Say

Declining RevenueA double-digit revenue decline signals structural demand weakness or market share loss that can erode scale economics. Persisting top-line contraction reduces operating leverage, pressures margins and cash flow, and requires strategic action to restore sustainable growth over the coming quarters.

Sharp Decline In Cash GenerationA >50% drop in operating and free cash flow materially reduces internal funding capacity. Even with some cash relative to income, this magnitude of decline limits reinvestment, weakens the ability to sustain dividends or capex, and increases reliance on balance-sheet flexibility for multi-month operations.

Low Returns On Equity / Falling Net MarginsROE below 5% and a declining net margin indicate limited efficiency in converting shareholder capital into profits. Over the medium term, low returns constrain capital allocation options, investor confidence, and the company's ability to grow equity value without improving operational effectiveness or strategic repositioning.

9986 FAQ

What was Zaoh Company, Ltd.’s price range in the past 12 months?

Zaoh Company, Ltd. lowest stock price was ¥2300.00 and its highest was ¥2653.00 in the past 12 months.

What is Zaoh Company, Ltd.’s market cap?

Zaoh Company, Ltd.’s market cap is ¥15.05B.

When is Zaoh Company, Ltd.’s upcoming earnings report date?

Zaoh Company, Ltd.’s upcoming earnings report date is Apr 23, 2026 which is in 50 days.

How were Zaoh Company, Ltd.’s earnings last quarter?

Zaoh Company, Ltd. released its earnings results on Feb 09, 2026. The company reported ¥37 earnings per share for the quarter, beating the consensus estimate of N/A by ¥37.

Is Zaoh Company, Ltd. overvalued?

According to Wall Street analysts Zaoh Company, Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Zaoh Company, Ltd. pay dividends?

Zaoh Company, Ltd. pays a Semiannually dividend of ¥50 which represents an annual dividend yield of 4%. See more information on Zaoh Company, Ltd. dividends here

What is Zaoh Company, Ltd.’s EPS estimate?

Zaoh Company, Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Zaoh Company, Ltd. have?

Zaoh Company, Ltd. has 6,266,000 shares outstanding.

What happened to Zaoh Company, Ltd.’s price movement after its last earnings report?

Zaoh Company, Ltd. reported an EPS of ¥37 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.391%.

Which hedge fund is a major shareholder of Zaoh Company, Ltd.?

Currently, no hedge funds are holding shares in JP:9986

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Zaoh Company, Ltd.

ZAOH Company, Ltd. imports and sells machines for anti-pollution and cleaning in Japan. The company is also involved in the sale of machines and devices for construction, manufacturing, measurement, and transportation; and sale of metalworking oils and related products. Its products include sweepers, vacuum cleaners, floor scrubbers, high pressure cleaners, carpet scrubbers and cleaners, steam cleaners, alkali ionized machines, and other products. The company was incorporated in 1956 and is headquartered in Tokyo, Japan.