JDC CORPORATION (1887) AI Stock Analysis

• Market Cap: ¥41.23B
• Dividend Yield: 3.81%
• Average Volume (3M): 286.76K
• Price to Earnings (P/E): 46.2
• Beta (1Y): 0.52
• Revenue Growth: -4.92%
• EPS Growth: N/A
• Country: JP
• Employees: 1,048
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 16.35
• Shares Outstanding: 89,255,000
• 10 Day Avg. Volume: 293,080
• 30 Day Avg. Volume: 286,760
• PEG Ratio: -0.24
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -87.23
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥588.00 ▲(12.00% Upside)

JDC Corporation's stock score is primarily influenced by its financial performance challenges, with declining revenue and cash flow constraints. Despite strong technical momentum, overbought conditions suggest caution. The high P/E ratio indicates overvaluation, partially offset by a reasonable dividend yield.

Positive Factors

Diversified Revenue Streams

JDC's diversified revenue streams from equipment, software, and consulting provide resilience against sector-specific downturns, supporting long-term stability.

Strategic Partnerships

Strategic partnerships expand JDC's market reach and product offerings, strengthening its competitive position and fostering sustainable growth.

Research and Development Investment

Continued investment in R&D ensures JDC remains competitive by innovating new products, driving future revenue growth and maintaining a competitive edge.

Negative Factors

Declining Revenue

The decline in revenue growth indicates challenges in maintaining sales momentum, which could impact long-term profitability and market position.

Cash Flow Constraints

Significant cash flow constraints limit JDC's ability to invest in growth opportunities and may strain financial flexibility over time.

Low Profit Margins

Low profit margins suggest operational inefficiencies and cost management challenges, potentially affecting long-term financial health and shareholder returns.

JDC CORPORATION Business Overview & Revenue Model

Company Description

JDC CORPORATION, established in 1887, is a longstanding player in the industrial sector, primarily focusing on manufacturing and providing innovative solutions in the fields of technology, engineering, and construction. The company operates across multiple sectors, including aerospace, automotive, and renewable energy, delivering a range of core products and services such as advanced machinery, precision components, and consultancy services for infrastructure projects.

How the Company Makes Money

JDC CORPORATION generates revenue through a diversified model that includes direct product sales, service contracts, and long-term partnerships with major corporations in various industries. Key revenue streams consist of the sale of machinery and components, consulting fees for engineering services, and contracts for large-scale infrastructure projects. Additionally, the company benefits from strategic alliances with technology firms, allowing it to integrate cutting-edge solutions into its offerings, thus enhancing its competitive edge and revenue potential. The company's ability to adapt to market demands and invest in research and development further contributes to its financial success.

JDC CORPORATION Financial Statement Overview

Summary

JDC Corporation faces significant challenges with declining revenue and profitability, coupled with cash flow constraints. The income statement and cash flow metrics indicate operational inefficiencies and financial pressures, although the balance sheet remains relatively stable.

Income Statement

JDC Corporation's income statement shows a decline in revenue growth rate by 6.99% in the latest year, indicating challenges in maintaining sales momentum. The gross profit margin stands at 9.88%, reflecting a decrease from previous years, which suggests pressure on cost management. The net profit margin is 1.08%, indicating limited profitability. EBIT and EBITDA margins are also low at 1.88% and 3.81%, respectively, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a stable debt-to-equity ratio of 0.45, suggesting a balanced approach to leveraging. However, the return on equity is modest at 2.01%, indicating limited returns for shareholders. The equity ratio is 47.08%, reflecting a solid equity base relative to total assets, which provides some financial stability.

Cash Flow

Cash flow analysis shows a concerning trend with a negative free cash flow growth rate of -106.40%, indicating cash flow challenges. The operating cash flow to net income ratio is 2.85, suggesting some ability to convert income into cash, but the negative free cash flow to net income ratio of -0.32 highlights cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	123.35B	123.35B	135.70B	154.20B	126.79B	117.80B
Gross Profit	12.19B	12.19B	-541.00M	13.94B	17.00B	19.02B
EBITDA	4.71B	4.70B	-3.73B	7.94B	13.82B	13.03B
Net Income	1.33B	1.33B	-7.19B	3.29B	7.39B	7.71B
Balance Sheet
Total Assets	140.65B	140.65B	145.68B	162.34B	154.72B	148.77B
Cash, Cash Equivalents and Short-Term Investments	18.14B	18.14B	21.95B	24.17B	47.59B	46.95B
Total Debt	30.02B	30.02B	30.00B	29.93B	30.03B	35.67B
Total Liabilities	74.22B	74.22B	77.09B	84.31B	74.78B	74.56B
Stockholders Equity	66.22B	66.22B	68.44B	77.88B	79.15B	73.83B
Cash Flow
Free Cash Flow	0.00	-430.00M	-5.02B	-15.26B	1.54B	396.00M
Operating Cash Flow	0.00	3.79B	-1.26B	-11.06B	3.76B	4.57B
Investing Cash Flow	0.00	-3.88B	1.47B	-6.31B	4.33B	-2.17B
Financing Cash Flow	0.00	-3.79B	-2.09B	-6.12B	-8.08B	16.91B

JDC CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 525.00
• 50DMA: Negative
• 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:1887, the sentiment is Positive. The current price of 525 is below the 20-day moving average (MA) of 528.50, below the 50-day MA of 530.38, and above the 200-day MA of 487.46, indicating a neutral trend. The MACD of -1.83 indicates Positive momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 57.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1887.

JDC CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1810	79 Outperform	¥45.54B	10.35	―	3.97%	2.85%	317.62%
1899	79 Outperform	¥66.47B	11.11	―	2.56%	1.71%	14.20%
1815	69 Neutral	¥66.64B	14.93	―	2.73%	-3.59%	49.34%
1929	68 Neutral	¥53.05B	15.80	―	3.78%	11.81%	52.35%
1813	65 Neutral	¥40.32B	12.61	―	2.26%	12.93%	98.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1887	56 Neutral	¥41.23B	46.19	1.27%	3.81%	-4.92%	―

JDC CORPORATION Corporate Events

JDC Corporation Reports Mixed Financial Results with Strategic Expansion

JDC Corporation reported a 10.2% increase in net sales for the three months ending August 31, 2025, compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability. The company has also included JDC Energy, LLC in its consolidation scope, suggesting a strategic expansion into energy sectors. Despite the short-term profit decline, JDC forecasts a significant increase in profits for the fiscal year ending May 31, 2026, indicating optimism about future performance.