ZOZO, Inc. (3092) 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

Valuence Holdings, Inc.

Aucnet, Inc.

USS Co., Ltd.

ZOZO, Inc.

Kakuyasu Group Co., Ltd.

Oisix ra daichi, Inc.

Mercari, Inc.

Kitanotatsujin Corp.

Belluna Co., Ltd.

Rakuten Group, Inc.

ASKUL Corp.

Why is ZOZO, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 53.84%

Healthy long term growth as Net Sales has grown by an annual rate of 9.53% and Operating profit at 9.96%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Dec 25

INTEREST(HY) At JPY 135 MM has Grown at 121.31%
ROCE(HY) Lowest at 50.29%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.42 times

With ROE of 48.76%, it has a very attractive valuation with a 10.36 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -34.21%, its profits have fallen by -2.8%

Majority shareholders : Non Institution

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.21% 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 hold?

Overall Portfolio exposure to ZOZO, Inc. should be less than 10%
Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ZOZO, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ZOZO, Inc.

-34.21%

-0.65

27.57%

Japan Nikkei 225

69.82%

2.74

25.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.53%

EBIT Growth (5y)

9.96%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

1.91

Tax Ratio

29.92%

Dividend Payout Ratio

70.07%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

298.40%

ROE (avg)

53.84%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.36

EV to EBIT

14.19

EV to EBITDA

12.89

EV to Capital Employed

13.94

EV to Sales

4.30

PEG Ratio

Dividend Yield

ROCE (Latest)

98.25%

ROE (Latest)

48.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.37% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.68 times

NET SALES(Q)

Highest at JPY 66,556 MM

OPERATING PROFIT(Q)

Highest at JPY 25,850 MM

OPERATING PROFIT MARGIN(Q)

Highest at 38.84 %

PRE-TAX PROFIT(Q)

Highest at JPY 23,464 MM

NET PROFIT(Q)

Highest at JPY 16,194.99 MM

EPS(Q)

Highest at JPY 18.06

-11What is not working for the Company

INTEREST(HY)

At JPY 135 MM has Grown at 121.31%

ROCE(HY)

Lowest at 50.29%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.42 times

Here's what is working for ZOZO, Inc.

Net Sales

Highest at JPY 66,556 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 25,850 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 38.84 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 23,464 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 16,194.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 18.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 6.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.37% (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

Depreciation

Highest at JPY 2,003 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for ZOZO, Inc.

Interest

At JPY 135 MM has Grown at 121.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 3.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio