Zaoh Company, Ltd. (9986) AI Stock Analysis

• Market Cap: ¥13.86B
• Dividend Yield: 4.08%
• Average Volume (3M): 3.43K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.19
• Revenue Growth: -7.01%
• EPS Growth: -30.15%
• Country: JP
• Employees: 199
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Distribution
• EPS (TTM): 22.37
• Shares Outstanding: 6,266,000
• 10 Day Avg. Volume: 3,780
• 30 Day Avg. Volume: 3,426
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 9.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥2,653.00 ▲(9.58% 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. (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 low leverage and a robust equity position, reflected in a high balance sheet score. However, declining revenues and cash flows are areas of concern that need addressing to maintain long-term growth.

Income Statement

Zaoh Company, Ltd. has exhibited stable revenue generation with a gross profit margin of 44.3% for the latest year, indicating efficient cost management relative to revenue. The net profit margin stands at 7.3%, which is moderate but shows potential for improvement. A negative revenue growth rate of -10.33% suggests a decline in sales compared to the previous year, which is a concern. However, the EBIT and EBITDA margins of 10.8% and 12.7% respectively reflect a reasonable level of operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.003, signifying minimal leverage and reduced financial risk. The return on equity (ROE) is 4.8%, suggesting moderate effectiveness in using equity to generate profits. The equity ratio of 87.2% highlights a solid capital structure with a high proportion of equity financing, enhancing financial stability.

Cash Flow

Zaoh's cash flow analysis shows a significant decrease in operating cash flow compared to the previous year, impacting free cash flow growth negatively at -60.67%. The operating cash flow to net income ratio is 0.83, indicating a reasonable conversion of profit into cash. The free cash flow to net income ratio of 0.65 suggests some challenges in converting earnings into free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.45B	9.43B	9.65B	8.95B	7.08B
Gross Profit	3.74B	3.99B	4.16B	3.98B	3.51B
EBITDA	1.07B	1.32B	1.45B	1.37B	1.06B
Net Income	616.60M	1.02B	1.05B	1.17B	789.42M
Balance Sheet
Total Assets	14.76B	14.80B	15.12B	14.74B	13.71B
Cash, Cash Equivalents and Short-Term Investments	6.76B	6.75B	7.16B	7.54B	6.69B
Total Debt	43.70M	20.04M	6.38M	0.00	0.00
Total Liabilities	1.88B	2.00B	1.95B	2.14B	1.88B
Stockholders Equity	12.88B	12.80B	13.17B	12.60B	11.83B
Cash Flow
Free Cash Flow	401.69M	1.02B	87.08M	1.16B	762.00M
Operating Cash Flow	513.71M	1.19B	178.36M	1.30B	798.38M
Investing Cash Flow	52.29M	-159.40M	-92.95M	-87.03M	865.73M
Financing Cash Flow	-550.91M	-1.44B	-459.42M	-361.17M	-1.08B

Zaoh Company, Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2421.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9986, the sentiment is Neutral. The current price of 2421 is above the 20-day moving average (MA) of 2417.65, below the 50-day MA of 2428.28, and above the 200-day MA of 2397.94, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 33.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥31.40B	9.30		2.12%	0.43%	21.46%
8089	73 Outperform	¥22.38B	7.06		3.54%	10.01%	47.35%
7417	73 Outperform	¥17.66B	8.33		3.99%	-1.64%	6.18%
9986	69 Neutral	¥13.86B	19.28		4.08%	-7.01%	-30.15%
8147	66 Neutral	¥6.05B	11.80		1.89%	5.28%	-13.61%
Sector *	63 Neutral	$10.71B	16.25	6.57%	2.09%	2.65%	-16.21%
7624	59 Neutral	¥7.28B	19.85		3.01%	0.66%	41.70%