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Zero Co., Ltd. (9028) AI Stock Analysis
Zero Co., Ltd.
(TSE/TYO:9028)
Zero Co. earns a score of 64, reflecting a fundamentally sound logistics company trading at an attractive valuation (P/E 8.4x, 3.9% dividend yield) but facing near-term headwinds. The most significant positive factor is the compelling valuation, which offers a margin of safety and income appeal. Financially, the company has delivered strong multi-year growth and balance sheet improvement, though FY2026 projections show decelerating revenue, plateauing margins, and a material drop in free cash flow — the most notable risk factor. Technical indicators are neutral, with the stock consolidating around its moving averages and no clear directional momentum. The low beta provides defensive characteristics but also limits upside in a risk-on environment. Investors should monitor whether the FY2026 cash flow weakness is temporary or structural.
Zero Co., Ltd. (9028) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 51.17B
- Dividend Yield
- 4.66%
- Average Volume (3M)
- 17.08K
- Price to Earnings (P/E)
- 7.0
- Beta (1Y)
- 0.70
- Revenue Growth
- 1.84%
- EPS Growth
- 0.27%
- Country
- Japan
- Employees
- 2,881
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Trucking
Zero Co., Ltd. Business Overview & Revenue Model
Company Description
Operating across Japan with its various subsidiaries, ZERO Co., Ltd. specializes in a comprehensive suite of vehicle transportation and maintenance solutions. Key offerings encompass the delivery of both new and pre-owned vehicles, alongside convenie...
How the Company Makes Money
Zero Co., Ltd. makes money primarily by charging fees for logistics services centered on automobiles. Key revenue streams generally include: (1) vehicle transportation fees (moving finished vehicles between factories, ports, distribution yards, deale...
Zero Co., Ltd. Financial Statement Overview
Summary
Zero Co. shows a strong multi-year revenue growth trajectory (+63% cumulative) and meaningful profitability improvement with net margins rising to ~4.9%. The balance sheet is healthy with declining leverage (D/E at 0.23) and solid ROE in the mid-teens. However, FY2026 signals deceleration: revenue growth slowing to +2.6%, margins plateauing, and free cash flow projected to drop ~40% to ¥5.4B despite stable earnings. The cash flow volatility and weakening FCF-to-net-income conversion (0.66) temper the otherwise positive fundamental picture. Blending the income statement (72), balance sheet (68), and cash flow (62) scores, the overall financial performance score reflects a fundamentally sound but decelerating business.
Income Statement
72PositiveBalance Sheet
68PositiveCash Flow
62Positive| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 150.56B | 150.56B | 147.84B | 140.75B | 132.86B | 107.05B |
| Gross Profit | 21.78B | 21.78B | 21.75B | 17.67B | 15.20B | 13.13B |
| EBITDA | 15.54B | 15.54B | 15.24B | 11.47B | 9.75B | 8.35B |
| Net Income | 7.21B | 7.21B | 7.18B | 4.15B | 3.44B | 2.54B |
Balance Sheet | ||||||
| Total Assets | 77.18B | 77.18B | 73.95B | 70.73B | 56.56B | 55.19B |
| Cash, Cash Equivalents and Short-Term Investments | 17.16B | 17.16B | 16.64B | 11.32B | 5.87B | 5.65B |
| Total Debt | 11.14B | 11.14B | 11.27B | 14.25B | 7.29B | 10.52B |
| Total Liabilities | 28.76B | 28.76B | 30.41B | 32.86B | 22.72B | 24.57B |
| Stockholders Equity | 48.09B | 48.09B | 42.90B | 37.21B | 33.28B | 30.07B |
Cash Flow | ||||||
| Free Cash Flow | 5.44B | 5.44B | 10.74B | 8.99B | 6.87B | 1.36B |
| Operating Cash Flow | 8.22B | 8.22B | 12.86B | 11.23B | 8.78B | 3.95B |
| Investing Cash Flow | -3.65B | -3.65B | -2.84B | -4.66B | -2.17B | -3.27B |
| Financing Cash Flow | -4.25B | -4.25B | -4.61B | -824.00M | -6.29B | -1.61B |
Zero Co., Ltd. Technical Analysis
Price Trends
Market Momentum
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 3010.00 is below the 20-day moving average (MA) of 3090.00, below the 50-day MA of 3280.80, and below the 200-day MA of 3503.45, indicating a bearish trend. The MACD of -69.06 indicates Negative momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 24.95 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
Overall Rating
JP:473277Outperform
JP:759368.5Neutral- JP:902864Neutral
JP:318661Neutral
JP:759956Neutral
JP:760248Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4732 | 77Outperform | JPY 823.70B | 19.75 | 21.34% | 3.21% | 11.30% | 12.09% |
| JP:7593 | 69Neutral | JPY 59.04B | 10.31 | ― | 4.86% | 13.60% | 12.08% |
| JP:9028 | 64Neutral | JPY 50.37B | 7.05 | ― | 4.66% | 1.84% | 0.27% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| JP:3186 | 61Neutral | JPY 190.42B | 10.11 | ― | 1.83% | 23.54% | 111.44% |
| JP:7599 | 56Neutral | JPY 96.19B | 8.07 | ― | 3.72% | 16.85% | -1.43% |
| JP:7602 | 48Neutral | JPY 3.21B | 16.91 | ― | 0.65% | 3.64% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:9028 | Zero Co., Ltd. | 3010.00 | -22.88 | -0.75% | |
| JP:4732 | USS Co | 1795.50 | 154.68 | 9.43% | |
| JP:3186 | Nextage Co., Ltd. | 2420.00 | 105.41 | 4.55% | |
| JP:7593 | VT Holdings Co., Ltd. | 494.00 | 24.56 | 5.23% | |
| JP:7599 | IDOM Inc. | 961.00 | -163.55 | -14.54% | |
| JP:7602 | Carchs Holdings Co., Ltd. | 153.00 | 18.93 | 14.12% |
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.
Date of analysis: Aug 17, 2026