JESCO Holdings, Inc. (1434) AI Stock Analysis

• Market Cap: ¥6.36B
• Dividend Yield: 4.8%
• Average Volume (3M): 29.00K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.44
• Revenue Growth: 48.04%
• EPS Growth: 24.48%
• Country: JP
• Employees: 754
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): -4.66
• Shares Outstanding: 6,954,000
• 10 Day Avg. Volume: 52,970
• 30 Day Avg. Volume: 29,003
• PEG Ratio: -0.38
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥995.00
• Price Target Upside: 7.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥995.00 ▲(7.22%Upside)

JESCO Holdings, Inc. benefits from strong financial performance with robust revenue growth and profitability, although cash flow issues need attention. Technical indicators suggest a positive trend, and the stock is attractively valued with a low P/E ratio and high dividend yield, making it a potentially good investment.

JESCO Holdings, Inc. Business Overview & Revenue Model

Company Description

JESCO Holdings, Inc. (1434) is a Japanese-based company primarily engaged in the construction and engineering sector. The company focuses on providing comprehensive construction services, including civil engineering, building construction, and environmental solutions. JESCO Holdings operates through its subsidiaries to deliver high-quality infrastructure projects and innovative engineering solutions to meet the diverse needs of its clients across various industries.

How the Company Makes Money

JESCO Holdings, Inc. generates revenue primarily through its construction and engineering services. The company undertakes a variety of projects, ranging from large-scale infrastructure developments to specialized engineering tasks, which contribute significantly to its income. Key revenue streams include project contracts with government entities, private sector firms, and international clients. Additionally, JESCO Holdings may engage in strategic partnerships and joint ventures to expand its project portfolio and capture new business opportunities. The company's reputation for delivering quality and timely projects helps in securing repeat business and building long-term client relationships, which are crucial for sustaining its revenue flow.

JESCO Holdings, Inc. Financial Statement Overview

Summary

JESCO Holdings, Inc. demonstrates strong revenue growth and profitability, with a stable balance sheet and moderate leverage. However, challenges in operational cash flow generation pose risks to financial health that need addressing.

Income Statement

JESCO Holdings, Inc. has demonstrated strong revenue growth with a 33.36% increase from the previous year. The gross profit margin improved to 18.45%, and the company shows solid profitability with a net profit margin of 6.84%. However, the decline in EBITDA margin to 12.19% from the previous year indicates some operational efficiency challenges.

Balance Sheet

The company maintains a manageable debt-to-equity ratio of 0.84, reflecting moderate leverage. The equity ratio stands at a healthy 37.41%, indicating a stable equity position. However, the return on equity is robust at 15.27%, highlighting effective use of shareholders' equity. Continued monitoring of debt levels is advisable.

Cash Flow

JESCO Holdings, Inc. shows a concerning trend with negative operating cash flow, despite positive free cash flow growth due to reduced capital expenditures. The operating cash flow to net income ratio is unfavorable, indicating cash flow issues relative to net income. Improving operational cash generation is crucial for long-term sustainability.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	14.80B	11.10B	10.38B	9.27B	8.99B
Gross Profit	2.73B	1.73B	1.58B	1.38B	1.18B
EBITDA	1.80B	1.93B	914.90M	808.24M	387.24M
Net Income	1.01B	1.18B	512.71M	463.22M	314.87M
Balance Sheet
Total Assets	17.73B	16.77B	13.47B	11.80B	9.97B
Cash, Cash Equivalents and Short-Term Investments	2.69B	2.54B	1.82B	1.72B	1.54B
Total Debt	5.55B	5.71B	4.67B	4.74B	3.07B
Total Liabilities	10.99B	10.24B	8.70B	7.80B	6.37B
Stockholders Equity	6.63B	5.61B	4.42B	3.79B	3.37B
Cash Flow
Free Cash Flow	-931.76M	-2.45B	652.87M	-1.44B	-1.72B
Operating Cash Flow	-851.84M	-2.40B	696.87M	1.16B	-147.26M
Investing Cash Flow	1.68B	2.69B	-185.65M	-2.39B	-1.69B
Financing Cash Flow	-759.32M	472.15M	-240.12M	1.55B	1.61B

JESCO Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 928.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1434, the sentiment is Neutral. The current price of 928 is below the 20-day moving average (MA) of 930.05, above the 50-day MA of 905.02, and above the 200-day MA of 914.47, indicating a neutral trend. The MACD of 7.46 indicates Positive momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1434.

JESCO Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1718	81 Outperform	¥7.11B	7.59		3.08%	-1.44%	40.85%
1434	73 Outperform	¥6.36B	9.45		4.80%	48.04%	24.48%
1438	72 Outperform	¥6.10B	18.98		1.91%	7.57%	-14.81%
1897	71 Outperform	¥6.04B	30.51		1.78%	-30.79%	-51.74%
1401	70 Outperform	¥8.96B	17.95		1.11%	2.39%	5.65%
1768	66 Neutral	¥6.50B	12.98		3.37%	-5.23%	96.32%
Sector *	58 Neutral	HK$14.28B	4.63	-3.01%	6.75%	3.67%	-54.16%