J-Long Group Limited (JL) AI Stock Analysis

• Market Cap: $22.98M
• Dividend Yield: N/A
• Average Volume (3M): 61.67K
• Price to Earnings (P/E): 68.9
• Beta (1Y): 0.92
• Revenue Growth: 30.48%
• EPS Growth: 30.06%
• Country: US
• Employees: 62
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 3,761,701
• 10 Day Avg. Volume: 76,857
• 30 Day Avg. Volume: 61,667
• PEG Ratio: <0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -1.71
• Enterprise Value/Market Cap: 0.04
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: 4.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ―

J-Long Group Limited showcases strong revenue growth and a stable balance sheet, which are positive indicators. However, significant challenges in profitability and cash flow management, coupled with a high P/E ratio, suggest overvaluation and potential financial instability. The technical analysis indicates moderate strength, but overall, the stock presents a mixed investment profile.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand and effective market penetration, suggesting a positive outlook for future expansion.

Cash Generation

Improved cash generation enhances financial flexibility and supports reinvestment in growth opportunities, strengthening the company's financial health.

Leverage Profile

A conservative leverage profile reduces financial risk and provides stability, allowing the company to navigate economic fluctuations more effectively.

Negative Factors

Thin Margins

Thin margins indicate vulnerability to cost pressures, which can impact profitability and limit the ability to invest in growth or absorb economic shocks.

Cash Flow Volatility

Volatile cash flows can challenge financial planning and stability, potentially affecting the company's ability to meet obligations or invest consistently.

Balance Sheet Volatility

Inconsistent capital structure over time can undermine investor confidence and complicate long-term strategic planning, affecting growth prospects.

J-Long Group Limited Business Overview & Revenue Model

Company Description

J-Long Group Limited distributes reflective and non-reflective garment trims in Asia, Hong Kong, the People's Republic of China, and internationally. The company offers heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. J-Long Group Limited also sells through online. The company was incorporated in 1985 and is based in Tsuen Wan, Hong Kong.

How the Company Makes Money

J-Long Group Limited generates revenue primarily through the sale of its tools and equipment across multiple sectors. The company's key revenue streams include direct sales to retailers and wholesalers, online sales through e-commerce platforms, and contractual agreements with large industrial clients. Significant partnerships with distributors and retailers enhance its market reach and sales volume. Additionally, the company invests in research and development to introduce new, innovative products, thereby maintaining a competitive edge and driving sales growth. Its international operations and strategic marketing initiatives further contribute to its revenue generation.

J-Long Group Limited Financial Statement Overview

Summary

J-Long Group Limited displays impressive revenue growth and a solid balance sheet, characterized by low leverage. However, the company faces significant challenges in profitability and cash flow management, with low net profit margins and negative free cash flow, which could impact its financial health and sustainability.

Income Statement

J-Long Group Limited has shown impressive revenue growth from the previous year, increasing from $4.89M to $28.37M, a substantial growth rate. The gross profit margin stands at 23.9%, indicating efficient cost management. However, the net profit margin is at 2.8%, which suggests a need for improved profitability despite the strong revenue increase. EBIT and EBITDA margins are moderate at 1.3% and 4.2%, respectively, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.21, indicating low leverage and financial stability. The equity ratio is a healthy 60.2%, showcasing a strong equity base. However, the return on equity (ROE) is 7.7%, which, while positive, suggests room for improvement in generating shareholder returns.

Cash Flow

The cash flow statement reveals challenges, with a negative free cash flow of $-1.70M. The operating cash flow to net income ratio is negative, highlighting inefficiencies in cash flow management. Moreover, the free cash flow to net income ratio is unfavorable, underscoring potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.67M	28.38M	39.08M	4.92M	4.89M	3.03M
Gross Profit	3.32M	6.80M	11.26M	1.11M	1.26M	596.72K
EBITDA	214.86K	1.20M	3.52M	724.36K	1.03M	291.46K
Net Income	-454.56K	783.66K	2.59M	575.97K	849.13K	290.47K
Balance Sheet
Total Assets	16.89M	16.89M	23.45M	2.46M	2.62M	2.01M
Cash, Cash Equivalents and Short-Term Investments	4.16M	4.21M	10.67M	996.52K	790.22K	569.01K
Total Debt	2.13M	2.13M	2.41M	4.33M	394.39K	485.11K
Total Liabilities	6.72M	6.72M	8.41M	1.56M	1.18M	1.30M
Stockholders Equity	10.17M	10.17M	14.64M	901.91K	1.45M	713.59K
Cash Flow
Free Cash Flow	―	-1.70M	6.20M	746.93K	243.45K	451.25K
Operating Cash Flow	-1.50M	-1.50M	7.23M	757.65K	249.83K	457.79K
Investing Cash Flow	―	17.00	-1.02M	-10.72K	263.00K	―
Financing Cash Flow	701.97K	701.97K	-669.87K	-309.67K	-691.79K	―

J-Long Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JL, the sentiment is Positive. The current price of 6.11 is above the 20-day moving average (MA) of 5.86, above the 50-day MA of 5.45, and above the 200-day MA of 5.25, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 63.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JL.

J-Long Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	78 Outperform	$22.00B	26.79	34.01%	0.93%	12.32%	29.40%
ZGN	74 Outperform	$4.32B	25.85	10.58%	1.33%	-1.88%	-5.94%
GIII	71 Outperform	$1.28B	9.11	8.61%	―	-2.61%	-11.87%
KTB	66 Neutral	$3.46B	16.02	49.11%	3.36%	9.90%	-12.67%
JL	64 Neutral	$22.98M	68.88	17.80%	―	30.48%	30.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VNCE	59 Neutral	$58.96M	-2.98	-33.24%	―	2.58%	-502.04%