Zero Co., Ltd. (9028) AI Stock Analysis

• Market Cap: ¥52.11B
• Dividend Yield: 4.47%
• Average Volume (3M): 30.46K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.77
• Revenue Growth: 5.04%
• EPS Growth: 72.78%
• Country: JP
• Employees: 2,647
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 101.88
• Shares Outstanding: 17,560,242
• 10 Day Avg. Volume: 26,280
• 30 Day Avg. Volume: 30,456
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥3,556.00 ▲(13.61% Upside)

Zero Co., Ltd. scores well due to its strong valuation metrics, particularly its low P/E ratio and high dividend yield, which suggest the stock is undervalued. Financial performance is stable, supported by strong cash flow management. Technical analysis indicates a neutral trend, with no strong momentum signals. The absence of earnings call data and corporate events limits additional insights.

Zero Co., Ltd. Business Overview & Revenue Model

Company Description

ZERO Co., Ltd., together with its subsidiaries, provides vehicle transportation and maintenance services in Japan. It offers new and used vehicle transportation, and door-to-door transportation of private cars and motorbikes. The company also offers new, heavy vehicle, and other maintenance services; handling and vehicle inspection services at auto auction; car selection services; general cargo transportation services; and human resources services, including pick-up and dispatching services. In addition, it provides port transportation and warehousing services; vehicle control and management services; temporary and placement services; and customs clearance services, as well as exports and sells used cars and automobile parts. The company was formerly known as Nissan Transportation Co. Ltd. and changed its name to ZERO Co., Ltd. in May 2001. The company was incorporated in 1961 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

Zero Co., Ltd. generates revenue through multiple streams, primarily from the sale of its eco-friendly products and services. The company offers a subscription model for its refillable packaging systems, providing customers with a sustainable alternative to single-use plastics. Additionally, Zero Co. earns income from partnerships with businesses and municipalities looking to implement waste reduction strategies, including consulting services and technology solutions. Key revenue streams also include the sale of biodegradable materials to manufacturers and retailers, as well as potential licensing agreements for their proprietary technologies aimed at waste management and recycling.

Zero Co., Ltd. Financial Statement Overview

Summary

Zero Co., Ltd. presents a stable financial profile with strong cash flow management and operational efficiency. Despite concerns about revenue growth and profit margins, the company's balanced leverage and consistent returns on equity provide a solid foundation.

Income Statement

Zero Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin has improved over the years, indicating efficient cost management. However, the net profit margin has been relatively low, reflecting challenges in converting revenue into profit. The revenue growth rate has been inconsistent, with a notable decline in the most recent year, which could be a concern for future growth prospects. Despite these challenges, the company has maintained a stable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet of Zero Co., Ltd. reflects a stable financial position with a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has been consistent, showcasing the company's ability to generate returns for shareholders. However, the equity ratio suggests that a significant portion of the company's assets is financed by debt, which could pose a risk if not managed carefully.

Cash Flow

Zero Co., Ltd. has demonstrated strong cash flow management, with a positive free cash flow growth rate and a healthy operating cash flow to net income ratio. The company has consistently generated free cash flow, which is crucial for sustaining operations and funding future growth. The free cash flow to net income ratio indicates that the company is effectively converting its earnings into cash, providing a solid foundation for financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.84B	147.84B	140.75B	132.86B	107.05B	92.17B
Gross Profit	21.75B	21.75B	17.67B	15.20B	13.13B	13.40B
EBITDA	15.43B	15.47B	11.41B	10.08B	8.64B	9.71B
Net Income	7.18B	7.18B	4.15B	3.44B	2.54B	3.63B
Balance Sheet
Total Assets	73.95B	73.95B	70.73B	56.56B	55.19B	50.94B
Cash, Cash Equivalents and Short-Term Investments	16.64B	16.64B	11.32B	5.94B	5.65B	5.91B
Total Debt	11.27B	11.27B	14.25B	7.29B	10.52B	10.62B
Total Liabilities	30.41B	30.41B	32.86B	22.72B	24.57B	22.64B
Stockholders Equity	42.90B	42.90B	37.21B	33.28B	30.07B	28.28B
Cash Flow
Free Cash Flow	10.74B	10.74B	8.45B	6.59B	1.26B	5.54B
Operating Cash Flow	12.86B	12.86B	11.23B	8.78B	3.95B	8.59B
Investing Cash Flow	-2.84B	-2.84B	-4.66B	-2.17B	-3.27B	-3.10B
Financing Cash Flow	-4.61B	-4.61B	-824.00M	-6.29B	-1.61B	-4.36B

Zero Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3130.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9028, the sentiment is Negative. The current price of 3130 is below the 20-day moving average (MA) of 3132.00, below the 50-day MA of 3182.40, and above the 200-day MA of 2920.73, indicating a neutral trend. The MACD of 1.65 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 33.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9028.

Zero Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5589	76 Outperform	¥18.37B	12.51	―	2.59%	2.16%	-4.76%
8291	76 Outperform	¥29.90B	7.72	―	4.81%	-5.73%	-38.92%
9028	74 Outperform	¥52.11B	7.43	―	4.47%	5.04%	72.78%
7134	71 Outperform	¥8.66B	11.65	―	2.97%	7.91%	8.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7593	61 Neutral	¥58.33B	11.58	―	4.88%	8.88%	-25.45%
9268	55 Neutral	¥22.73B	-9.95	―	5.44%	50.37%	-148.77%