Zoom Corp. (6694) AI Stock Analysis

• Market Cap: ¥2.73B
• Dividend Yield: 4.82%
• Average Volume (3M): 11.04K
• Price to Earnings (P/E): 72.8
• Beta (1Y): 0.25
• Revenue Growth: -1.04%
• EPS Growth: -163.70%
• Country: JP
• Employees: 200
• Sector: Technology
• Sector Strength: 80
• Industry: Consumer Electronics
• EPS (TTM): -41.90
• Shares Outstanding: 4,594,824
• 10 Day Avg. Volume: 11,440
• 30 Day Avg. Volume: 11,043
• PEG Ratio: 0.67
• Price to Book (P/B): 0.42
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Zoom Corp.'s stock is moderately positioned with a score of 55.5. The company shows solid revenue growth and effective cash management, but recent profitability issues and declining returns are areas of concern. Technical analysis indicates a bearish trend, with the stock trading below key averages and close to oversold levels. Valuation is challenged by a negative P/E ratio, though the high dividend yield offers some appeal.

Zoom Corp. Business Overview & Revenue Model

Company Description

Zoom Corp. (6694) is a Japanese company engaged in the design, development, and distribution of audio equipment and software solutions. The company's product portfolio includes a wide range of digital audio recorders, multi-effects processors, and audio interfaces, catering to musicians, audio professionals, and content creators. Zoom Corp. is recognized for its innovative approach to sound technology and commitment to delivering high-quality audio products that enhance the recording and performance experience.

How the Company Makes Money

Zoom Corp. generates revenue primarily through the sale of its audio equipment and software solutions. The company's key revenue streams include the direct sale of hardware products such as digital audio recorders and audio interfaces, as well as software solutions that complement these devices. Zoom Corp. also leverages a global distribution network, partnering with retailers and distributors to reach a broad range of customers. Additional revenue is derived from after-sales services, which may include repairs and product support. The company's earnings are bolstered by its continuous investment in research and development, enabling the launch of innovative products that meet the evolving needs of its target market.

Zoom Corp. Financial Statement Overview

Summary

Zoom Corp. demonstrates a solid financial foundation with consistent revenue growth and effective cash management. However, recent profitability challenges and declining return on equity suggest areas for improvement. The balance sheet remains balanced, providing a stable platform for future growth. Monitoring cost management and profitability will be crucial for sustaining long-term success.

Income Statement

The company has shown consistent revenue growth over the years, with a minor dip in net income recently. Gross profit margin is solid at approximately 38.36%, but the net profit margin is relatively low at 0.22% due to rising costs impacting profitability. EBIT and EBITDA margins indicate operational efficiency improvements, though margins have tightened compared to earlier periods.

Balance Sheet

The balance sheet is stable, with a moderate debt-to-equity ratio of 1.14, indicating a balanced approach to leveraging. The equity ratio stands at 35.67%, showing a healthy level of equity financing. Return on equity has declined to 0.56%, reflecting pressure on net income growth.

Cash Flow

Operating cash flow has decreased significantly over the years, affecting the free cash flow growth rate. However, the company maintains positive free cash flow, which is a good sign. The free cash flow to net income ratio is strong, indicating effective cash management relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
18.07B	17.90B	13.24B	13.42B	10.42B
	Gross Profit
6.93B	7.07B	5.22B	5.70B	4.29B
	EBIT
531.52M	573.61M	664.16M	1.26B	755.25M
	EBITDA
1.34B	1.54B	1.18B	1.65B	974.13M
	Net Income Common Stockholders
40.88M	88.95M	377.54M	854.08M	502.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.32B	2.85B	2.17B	2.07B	2.73B
	Total Assets
20.09B	19.26B	13.65B	10.83B	10.20B
	Total Debt
8.16B	7.93B	3.73B	2.55B	2.71B
	Net Debt
4.87B	5.08B	1.56B	481.11M	-19.86M
	Total Liabilities
11.47B	11.34B	7.06B	4.92B	5.06B
	Stockholders Equity
7.17B	6.66B	6.49B	5.84B	5.12B
Cash Flow		Free Cash Flow
346.10M	588.09M	-853.74M	408.26M	795.78M
	Operating Cash Flow
584.57M	817.10M	-586.56M	637.06M	990.10M
	Investing Cash Flow
-241.61M	-2.44B	-175.71M	-478.30M	-1.27B
	Financing Cash Flow
15.11M	2.23B	726.05M	-937.05M	716.06M

Zoom Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 641.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6694, the sentiment is Negative. The current price of 641 is below the 20-day moving average (MA) of 664.50, below the 50-day MA of 679.24, and below the 200-day MA of 693.12, indicating a bearish trend. The MACD of -3.49 indicates Positive momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 11.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6694.

Zoom Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6758	79 Outperform	$22.01T	19.51	14.32%	0.53%	9.56%	26.52%
6702	73 Outperform	$6.00T	26.97	11.70%	0.83%	-5.48%	-11.96%
7751	70 Outperform	¥4.54T	26.30		3.37%	9.08%	-33.61%
6752	70 Outperform	$3.80T	10.38	7.85%	2.89%	1.72%	-33.60%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
7731	57 Neutral	$448.09B	80.26	0.91%	3.37%	0.01%	-54.41%
6694	56 Neutral	¥2.73B	72.82		4.82%	-1.04%	-163.70%

Zoom Corp. Corporate Events

Zoom Corporation Reports Q1 2025 Financial Results

Zoom Corporation reported a decline in its financial performance for the first quarter of 2025, with net sales dropping by 4.8% and a notable decrease in profits compared to the previous year. Despite this, the company remains optimistic about its full-year forecast, projecting a modest increase in net sales and a significant improvement in profitability, indicating strategic adjustments to enhance its market position.

Zoom Corporation Announces Leadership Transition

Zoom Corporation announced a change in its Representative Directors to facilitate a generational transition in management. Effective March 27, 2025, Masahiro Iijima will step down as Representative Director and Group CEO, becoming a Director and Founder, reducing the number of Representative Directors from two to one.