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J-Long Group Limited (JL)
NASDAQ:JL
US Market

J-Long Group Limited (JL) AI Stock Analysis

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JL

J-Long Group Limited

(NASDAQ:JL)

Rating:64Neutral
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.

J-Long Group Limited (JL) vs. SPDR S&P 500 ETF (SPY)

J-Long Group Limited Business Overview & Revenue Model

Company DescriptionJ-Long Group Limited (JL) is a diversified industrial company engaged in the manufacture and distribution of high-quality tools and equipment. The company operates across various sectors, including construction, automotive, and home improvement, providing a wide range of products such as hand tools, power tools, and accessories. With a strong focus on innovation and quality, J-Long Group Limited serves both professional and DIY markets globally, maintaining a robust presence in key international markets.
How the Company Makes MoneyJ-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
82
Very Positive
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
75
Positive
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
60
Neutral
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.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue28.38M4.89M4.92M3.03M
Gross Profit6.80M1.26M1.11M596.72K
EBITDA1.20M1.03M724.36K291.46K
Net Income783.66K849.13K575.97K290.47K
Balance Sheet
Total Assets16.89M2.62M2.46M2.01M
Cash, Cash Equivalents and Short-Term Investments4.21M790.22K996.52K569.01K
Total Debt2.13M394.39K552.96K485.11K
Total Liabilities6.72M1.18M1.56M1.30M
Stockholders Equity10.17M1.45M901.91K713.59K
Cash Flow
Free Cash Flow-1.70M243.45K746.93K451.25K
Operating Cash Flow-1.50M249.83K757.65K457.79K
Investing Cash Flow17.00263.00K-10.72K
Financing Cash Flow701.97K-691.79K-309.67K

J-Long Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.35
Price Trends
50DMA
5.02
Positive
100DMA
4.51
Positive
200DMA
4.30
Positive
Market Momentum
MACD
0.33
Positive
RSI
65.92
Neutral
STOCH
77.97
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 6.35 is above the 20-day moving average (MA) of 6.06, above the 50-day MA of 5.02, and above the 200-day MA of 4.30, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 65.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.97 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$3.49B16.2912.34%1.88%-1.69%-4.01%
66
Neutral
$41.78M-1.33%6.08%24.43%57.78%
JLJL
64
Neutral
93.1113.24%
57
Neutral
$5.65B22.83-28.61%5.63%10.25%-31.59%
UFUFI
55
Neutral
$89.78M-15.73%2.51%32.95%
53
Neutral
$56.77M-28.56%-5.37%-37.39%
45
Neutral
$19.01M6.22-63.56%1.46%-191.66%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JL
J-Long Group Limited
6.31
1.44
29.57%
COLM
Columbia Sportswear
63.19
-14.75
-18.92%
UFI
Unifi
4.91
-0.79
-13.86%
VNCE
Vince Holding
1.57
0.19
13.77%
CULP
Culp
4.69
-0.35
-6.94%
JRSH
Jerash Holdings (US)
3.32
0.57
20.73%
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: Mar 25, 2025