ZUU Co., Ltd. (4387) AI Stock Analysis

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ZUU Co., Ltd.

(4387)

Rating:42Neutral

Price Target:―

ZUU Co., Ltd. faces significant challenges with profitability and cash flow, reflected in a low financial performance score. Technical analysis suggests bearish market sentiment, further weighed down by an unattractive valuation due to negative earnings. The lack of earnings call data and corporate events leaves these assessments unchanged, resulting in a low overall stock score.

ZUU Co., Ltd. (4387) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥3.39B

Dividend YieldN/A

Average Volume (3M)6.30K

Price to Earnings (P/E)28.2

Beta (1Y)0.67

Revenue Growth2.09%

EPS Growth-296.06%

CountryJP

Employees149

SectorTechnology

Sector Strength74

IndustrySoftware - Application

Share Statistics

EPS (TTM)72.58

Shares Outstanding4,749,860

10 Day Avg. Volume10,560

30 Day Avg. Volume6,303

Financial Highlights & Ratios

PEG Ratio0.07

Price to Book (P/B)3.28

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

ZUU Co., Ltd. Business Overview & Revenue Model

Company DescriptionZUU Co.,Ltd. operates fintech platforms in Japan and Singapore. The company offers fintech support services; PDCA Cloud, which provides a method to change organizational performance and profit margin as a SaaS service; and loan-type and stock investment type crowdfunding, as well as media services. It also operates ZUU online, a financial media that offers financial and economic contents. The company was incorporated in 2013 and is based in Tokyo, Japan.

How the Company Makes MoneyZUU Co., Ltd. generates revenue through a combination of subscription fees, advertising, and partnerships. It charges subscription fees to individual users and financial institutions for premium access to its financial advisory platforms and investment tools. Additionally, it earns advertising revenue by offering advertising space on its online media platforms, which are visited by users seeking financial information and advice. The company also engages in strategic partnerships with financial institutions, providing tailored services and solutions, which contribute to its revenue streams.

ZUU Co., Ltd. Financial Statement Overview

Summary

ZUU Co., Ltd. demonstrates strong gross profitability with a margin of 68.57%, but faces profitability issues with a declining revenue trend and a negative net profit margin of -5.56%. The balance sheet shows low leverage with a debt-to-equity ratio of 0.37, but a negative ROE of -15.79% is concerning. Cash flow is a significant risk due to zero operating and free cash flows.

Income Statement

Neutral

ZUU Co., Ltd. has shown a declining revenue trend in the TTM with a negative revenue growth rate of -10.92% from the previous annual period. The gross profit margin in the TTM stands at 68.57%, indicating strong product profitability. However, the company is suffering from a negative net profit margin of -5.56% in the TTM, signaling profitability issues, primarily due to negative net income. The EBIT and EBITDA margins are weak as well, at 3.15% and 1.36%, respectively.

Balance Sheet

Neutral

The company maintains a healthy equity ratio of 9.07% in the TTM, reflecting a solid financial structure with more assets funded by equity. The debt-to-equity ratio is 0.37, indicating a low level of leverage which reduces financial risk. However, the return on equity (ROE) is negative at -15.79% due to consistent losses, which is a concern for investors seeking profitability.

Cash Flow

Negative

ZUU Co., Ltd. has faced challenges with cash flow as indicated by the zero operating and free cash flows in the TTM. The free cash flow growth rate is unavailable due to zero values, and the operating cash flow to net income ratio is indeterminate. This lack of positive cash flow generation presents a significant risk to financial stability.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
3.03B	2.90B	3.40B	3.38B	2.79B	1.85B
	Gross Profit
2.08B	1.90B	2.43B	2.43B	2.10B	1.32B
	EBIT
95.30M	115.01M	210.63M	-244.94M	14.39M	-106.85M
	EBITDA
41.05M	33.41M	190.21M	-252.45M	-169.44M	-91.96M
	Net Income Common Stockholders
-168.29M	-45.16M	90.03M	-230.72M	-300.09M	-92.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.84B	1.72B	1.49B	1.04B	1.25B	331.59M
	Total Assets
9.33B	9.33B	3.07B	2.01B	2.05B	1.35B
	Total Debt
260.48M	260.48M	125.67M	19.17M	19.17M	125.91M
	Net Debt
-1.58B	-1.46B	-1.37B	-1.02B	-1.23B	-205.68M
	Total Liabilities
4.41B	4.41B	1.71B	811.05M	657.02M	461.29M
	Stockholders Equity
1.30B	1.30B	1.34B	1.19B	1.39B	885.98M
Cash Flow		Free Cash Flow
0.00	87.93M	399.88M	-194.26M	211.11M	-293.32M
	Operating Cash Flow
0.00	120.56M	409.85M	-186.42M	231.06M	-283.77M
	Investing Cash Flow
0.00	-3.09B	-106.64M	-88.56M	-275.00K	-364.91M
	Financing Cash Flow
0.00	3.31B	154.28M	56.60M	691.20M	23.56M

ZUU Co., Ltd. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price714.00

Price Trends

50DMA

759.70

Negative

100DMA

777.87

Negative

200DMA

759.02

Negative

Market Momentum

MACD

-7.04

Positive

RSI

44.39

Neutral

STOCH

14.79

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4387, the sentiment is Negative. The current price of 714 is below the 20-day moving average (MA) of 735.30, below the 50-day MA of 759.70, and below the 200-day MA of 759.02, indicating a bearish trend. The MACD of -7.04 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 14.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4387.

ZUU Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4447	70 Outperform	¥3.24B	15.59		1.97%	-0.64%	-36.11%
4484	61 Neutral	¥3.53B	19.93		―	-1.85%	122.23%
Sector *	61 Neutral	$11.30B	10.11	-6.98%	2.96%	7.48%	-11.26%
4174	54 Neutral	¥3.59B	76.55		1.87%	6.89%	-87.42%
4014	53 Neutral	¥3.28B	51.41		―	-20.86%	95.04%
3909	50 Neutral	¥3.24B	13.09		―	13.97%	―
4387	42 Neutral	¥3.39B	28.24		―	2.09%	-296.06%

* Technology Sector Average

Performance Comparison

JP:4387

ZUU Co., Ltd.

714.00

-290.00

-28.88%

JP:3909

Showcase, Inc. (Japan)

318.00

25.00

8.53%

JP:4014

KARADANOTE INC.

513.00

10.00

1.99%

JP:4174

Appirits Inc.

857.00

-213.92

-19.98%

JP:4447

PBsystems, Inc.

507.00

-86.86

-14.63%

JP:4484

Lancers, Inc.

217.00

-30.00

-12.15%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.