Zoom Corp. (6694) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nihon Falcom Corp.

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Kawai Musical Instrument Manufacturing Co., Ltd.

Mars Group Holdings Corp.

Zoom Corp.

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Graphite Design, Inc.

Fujishoji Co., Ltd.

Snow Peak, Inc. (Japan)

Why is Zoom Corp. ?

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At JPY -102.67 MM has Grown at -136.33%
INTEREST(HY) At JPY 79.23 MM has Grown at 66.06%
ROCE(HY) Lowest at -26.2%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -3.65%, its profits have fallen by -563.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.65% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Zoom Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zoom Corp.

-3.65%

-2.17

17.17%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.85%

EBIT Growth (5y)

-159.54%

EBIT to Interest (avg)

16.20

Debt to EBITDA (avg)

2.04

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

1.31

Tax Ratio

85.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.19%

ROE (avg)

7.75%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.53

EV to EBIT

-131.73

EV to EBITDA

9.37

EV to Capital Employed

0.74

EV to Sales

0.42

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.56%

ROE (Latest)

-10.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -0.19% (YoY

CASH AND EQV(HY)

Highest at JPY 6,539.14 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.43 %

PRE-TAX PROFIT(Q)

Highest at JPY 164.42 MM

NET PROFIT(Q)

Highest at JPY -24.54 MM

EPS(Q)

Highest at JPY -7.89

-20What is not working for the Company

NET PROFIT(HY)

At JPY -102.67 MM has Grown at -136.33%

INTEREST(HY)

At JPY 79.23 MM has Grown at 66.06%

ROCE(HY)

Lowest at -26.2%

DEBT-EQUITY RATIO (HY)

Highest at 90.05 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.16 times

Here's what is working for Zoom Corp.

Pre-Tax Profit

At JPY 164.42 MM has Grown at 387.56%

over average net sales of the previous four periods of JPY -57.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Operating Profit Margin

Highest at 8.43 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 164.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY -24.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY -24.54 MM has Grown at 86.65%

over average net sales of the previous four periods of JPY -183.85 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY -7.89

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 6,539.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Zoom Corp.

Interest

At JPY 79.23 MM has Grown at 66.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 90.05 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 10.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio