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

2 Followers

Zero Co., Ltd.

(TSE/TYO:9028)

Select Model

Rating:70Outperform

Price Target:JPY 3,383.00▲(14.06% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by solid fundamentals (steady multi-year growth, improved profitability, and low leverage) but is held back by weakening cash-flow conversion and a sharp decline in free cash flow. Valuation is a meaningful positive (low P/E and strong dividend yield), while technical indicators are broadly neutral with slightly negative momentum (negative MACD).

Positive Factors

Multi-year revenue and profit growthSustained expansion in revenue alongside materially improved profitability indicates that Zero has strengthened its operating base over several years. This combination supports greater earnings resilience, creates more resources for reinvestment, and suggests the business can continue benefiting from established vehicle-logistics demand.

Negative Factors

Sharp free-cash-flow declineThe sharp reduction in free cash flow weakens confidence that reported earnings are translating efficiently into distributable cash. If this pattern persists, Zero may have less flexibility to fund investment, reduce obligations, or sustain shareholder returns internally, making cash conversion an important medium-term concern.

Zero Co., Ltd. (9028) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 49.84B
Dividend Yield: 4.73%
Average Volume (3M): 17.16K
Price to Earnings (P/E): 6.9
Beta (1Y): 0.68
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

Financial statements are solid overall: multi-year revenue growth and meaningfully improved profitability versus earlier years, supported by a conservatively levered balance sheet with growing equity and healthy ROE. The main drag is weaker cash-flow conversion and a sharp year-over-year decline in free cash flow, which reduces confidence in earnings quality despite still-positive FCF.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

56Neutral

Financial statement breakdown
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

Technical Analysis SentimentNegative

Last Price2966.00

Price Trends

50DMA3237.44Negative

100DMA3409.30Negative

200DMA3485.13Negative

Market Momentum

MACD-65.01Negative

RSI36.26Neutral

STOCH40.56Neutral

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 2966.00 is below the 20-day moving average (MA) of 3059.85, below the 50-day MA of 3237.44, and below the 200-day MA of 3485.13, indicating a bearish trend. The MACD of -65.01 indicates Negative momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 40.56 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

UnderperformOutperform

Sector (61)

Financial Indicators

JP:9028 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4732	78Outperform	JPY 876.77B	20.06	21.34%	3.16%	11.30%	12.09%
JP:9028	70Outperform	JPY 50.86B	6.95	―	4.73%	1.84%	0.27%
JP:7593	69Neutral	JPY 60.58B	10.15	―	4.94%	13.60%	12.08%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3186	61Neutral	JPY 205.32B	10.61	―	1.70%	23.54%	111.44%
JP:7599	56Neutral	JPY 98.60B	7.92	―	3.79%	16.85%	-1.43%
JP:7602	52Neutral	JPY 3.10B	15.47	―	0.71%	3.64%	―

* Consumer Cyclical Sector Average

Performance Comparison

JP:9028 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9028	Zero Co., Ltd.	2966.00	-37.99	-1.26%
JP:4732	USS Co	1824.50	155.13	9.29%
JP:3186	Nextage Co., Ltd.	2539.00	52.66	2.12%
JP:7593	VT Holdings Co., Ltd.	486.00	13.70	2.90%
JP:7599	IDOM Inc.	943.00	-210.66	-18.26%
JP:7602	Carchs Holdings Co., Ltd.	140.00	4.94	3.66%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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

Zero Co., Ltd. AI Stock Analysis