Zaoh Company, Ltd. (9986) AI Stock Analysis

• Market Cap: ¥14.03B
• Dividend Yield: 4.05%
• Average Volume (3M): 2.93K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.17
• 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: 2,630
• 30 Day Avg. Volume: 2,926
• PEG Ratio: -0.54
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 32.39
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,653.00 ▲(7.50% 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.

Zaoh Company, Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Zaoh Company generates revenue primarily through the sale of its semiconductor products and integrated circuits. The company has established a robust revenue model based on both direct sales to manufacturers and long-term contracts with large-scale clients in various industries. Key revenue streams include the production of custom chips tailored to client specifications, as well as standard products that cater to mass-market needs. Additionally, Zaoh benefits from strategic partnerships with technology firms and electronics manufacturers, which enhance its market reach and operational efficiency. The company also invests in research and development to innovate new products, ensuring a sustainable growth trajectory and adaptation to market trends.

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	3.32B
EBITDA	1.31B	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	22.16M	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: 2468.00
• 50DMA: Positive
• 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:9986, the sentiment is Positive. The current price of 2468 is above the 20-day moving average (MA) of 2461.00, above the 50-day MA of 2442.17, and above the 200-day MA of 2377.65, indicating a bullish trend. The MACD of 2.42 indicates Positive momentum. The RSI at 58.64 is Neutral, neither overbought nor oversold. The STOCH value of 16.18 is Positive, 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	80 Outperform	¥29.36B	8.70	―	2.30%	-0.94%	51.59%
7417	77 Outperform	¥17.31B	8.16	―	4.07%	-1.64%	6.18%
8147	74 Outperform	¥6.18B	12.05	―	1.84%	5.28%	-13.61%
9986	69 Neutral	¥14.03B	19.51	―	4.05%	-7.01%	-30.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8089	63 Neutral	¥20.98B	6.60	―	3.89%	10.01%	47.35%
7624	59 Neutral	¥7.61B	20.03	―	2.88%	1.08%	82.69%