Zaoh Company, Ltd. (9986) AI Stock Analysis

• Market Cap: ¥14.09B
• Dividend Yield: 4.06%
• Average Volume (3M): 3.36K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.16
• Revenue Growth: -7.01%
• EPS Growth: -30.15%
• Country: JP
• Employees: 199
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 22.37
• Shares Outstanding: 6,266,000
• 10 Day Avg. Volume: 3,090
• 30 Day Avg. Volume: 3,363
• 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: ¥2,653.00
• Price Target Upside: 7.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥2,653.00 ▲(7.80% Upside)

Zaoh Company, Ltd. has a strong financial foundation with minimal debt and a high equity ratio, which are significant strengths. However, challenges such as declining revenue, profitability margins, and cash flow generation weigh on the score. The technical indicators suggest a lack of strong momentum, while the valuation is supported by an attractive dividend yield. The absence of earnings call data and corporate events limits the analysis to these factors.

Positive Factors

Financial Stability

Zaoh's minimal leverage and high equity ratio of 87.24% indicate strong financial stability, providing resilience against economic fluctuations and the ability to invest in growth opportunities.

Brand Reputation

A strong brand reputation enhances customer loyalty and market penetration, supporting long-term revenue generation and competitive positioning in the consumer electronics sector.

Renewable Energy Focus

Zaoh's investment in renewable energy aligns with global sustainability trends, offering potential for growth in emerging markets and diversification of revenue streams.

Negative Factors

Declining Revenue

A declining revenue trend indicates potential challenges in market demand or competitive pressures, which could impact long-term financial performance and necessitate strategic adjustments.

Profitability Margins

Reduced profitability margins suggest inefficiencies in cost management or pricing strategies, which could affect the company's ability to sustain profits and reinvest in business growth.

Cash Flow Decline

A significant drop in cash flow generation limits Zaoh's financial flexibility and capacity to fund operations, invest in new projects, or return capital to shareholders, potentially hindering growth.

Zaoh Company, Ltd. Business Overview & Revenue Model

Company Description

Zaoh Company, Ltd. (9986) is a diversified enterprise primarily engaged in the manufacturing and distribution of consumer electronics and technology solutions. Operating in various sectors, including home appliances, telecommunications, and renewable energy, Zaoh is committed to innovation and quality. The company offers a range of products such as smart home devices, mobile communication equipment, and energy-efficient appliances, catering to both domestic and international markets.

How the Company Makes Money

Zaoh Company, Ltd. generates revenue through multiple streams, primarily from the sales of its consumer electronics and appliances. The company capitalizes on its established brand reputation to command a strong market presence, which is bolstered by strategic partnerships with key retailers and online platforms. Additionally, Zaoh benefits from recurring revenue through warranty services, software updates, and subscription-based services for its smart home products. The growing focus on renewable energy solutions also positions the company to tap into emerging markets, providing further opportunities for revenue growth.

Zaoh Company, Ltd. Financial Statement Overview

Summary

Zaoh Company, Ltd. demonstrates strong financial stability with minimal debt and a high equity ratio, which are significant strengths. However, the company faces challenges with declining revenue and profitability margins, as well as reduced cash flow generation. These areas present opportunities for improvement to enhance overall financial performance.

Income Statement

Zaoh Company, Ltd. has shown a decline in revenue from 2024 to 2025, with a negative revenue growth rate of -10.34%. The gross profit margin for 2025 is 44.30%, indicating strong profitability in its operations. However, the net profit margin has decreased to 7.30% in 2025, reflecting reduced efficiency in converting revenue into profit. The EBIT margin is 10.79%, and the EBITDA margin is 12.70%, both showing a decline from the previous year, suggesting a need for improved cost management.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio of 0.0034, indicating minimal leverage. The equity ratio stands at 87.24%, highlighting strong financial stability and asset ownership. Return on equity (ROE) is 4.79%, which is relatively low, suggesting that the company could improve its efficiency in generating profits from shareholders' equity.

Cash Flow

Zaoh Company, Ltd. experienced a significant decline in operating cash flow from 2024 to 2025, with a decrease of 56.69%. The free cash flow also decreased by 60.65%. The operating cash flow to net income ratio is 0.83, and the free cash flow to net income ratio is 0.65, indicating that the company generates sufficient cash relative to its net income, though there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.43B	8.45B	9.43B	9.65B	8.95B	6.82B
Gross Profit	4.01B	3.74B	3.99B	4.16B	3.98B	3.51B
EBITDA	1.29B	1.07B	1.35B	1.45B	1.37B	1.06B
Net Income	782.33M	616.60M	1.02B	1.05B	1.17B	789.42M
Balance Sheet
Total Assets	14.17B	14.76B	14.80B	15.12B	14.74B	13.71B
Cash, Cash Equivalents and Short-Term Investments	6.30B	6.76B	6.75B	7.16B	7.54B	6.69B
Total Debt	0.00	43.70M	20.04M	6.38M	0.00	0.00
Total Liabilities	1.85B	1.88B	2.00B	1.95B	2.14B	1.88B
Stockholders Equity	12.32B	12.88B	12.80B	13.17B	12.60B	11.83B
Cash Flow
Free Cash Flow	202.99M	401.69M	1.02B	87.08M	1.16B	762.00M
Operating Cash Flow	202.99M	513.71M	1.19B	178.36M	1.30B	798.38M
Investing Cash Flow	0.00	52.29M	-159.40M	-92.95M	-87.03M	865.73M
Financing Cash Flow	0.00	-550.91M	-1.44B	-459.42M	-361.17M	-1.08B

Zaoh Company, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2461.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9986, the sentiment is Positive. The current price of 2461 is above the 20-day moving average (MA) of 2439.30, above the 50-day MA of 2429.46, and above the 200-day MA of 2402.31, indicating a bullish trend. The MACD of 9.47 indicates Negative momentum. The RSI at 65.86 is Neutral, neither overbought nor oversold. The STOCH value of 80.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9986.

Zaoh Company, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9845	81 Outperform	¥30.56B	9.05		2.08%	0.43%	21.46%
8089	73 Outperform	¥22.91B	7.23		3.36%	10.01%	47.35%
7417	73 Outperform	¥17.47B	8.24		3.96%	-1.64%	6.18%
9986	69 Neutral	¥14.09B	19.60		4.06%	-7.01%	-30.15%
8147	66 Neutral	¥6.08B	11.87		1.88%	5.28%	-13.61%
Sector *	63 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
7624	59 Neutral	¥7.67B	20.89		2.88%	0.66%	41.70%