JDC CORPORATION (1887) AI Stock Analysis

• Market Cap: €42.57B
• Dividend Yield: 3.68%
• Average Volume (3M): 286.76K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.53
• Revenue Growth: -4.92%
• EPS Growth: N/A
• Country: JP
• Employees: 1,048
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 16.34
• 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 ▲(8.49% 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 provides civil engineering and building construction works in Japan and internationally. It researches and develops electrical power, transportation, ports and harbors, afforestation, flood control, irrigation, land reclamation, underground resources, and other development of national land; and produces, sells, loans, and repairs construction and mining machinery, other machinery, tools, etc. The company also manufactures and sells construction materials, stone materials, chemical products, etc. In addition, it engages in the sale, rental, brokerage, management, and appraisal of real estate; and ownership, rental, and management of leisure facilities, such as golf courses, ski resorts, etc. Further, the company is involved in the generation and supply of electricity, heat, etc.; and soil and water remediation in rivers, lakes, and bays, as well as the collection, transport, processing, disposal, and recycling of municipal, industrial, and construction waste. The company was incorporated in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JDC CORPORATION generates revenue through multiple streams, primarily from the sale of industrial equipment and machinery, which constitutes a significant portion of its earnings. The company also earns substantial income from software licensing and subscription services related to their proprietary technology solutions. Additionally, JDC provides consulting services that help businesses optimize their operations, further contributing to its revenue. Strategic partnerships with other technology firms and suppliers enhance its product offerings and market reach, while long-term contracts with key clients ensure a stable income flow. Furthermore, JDC invests in research and development to innovate new products and services, which helps to maintain its competitive edge and drive future revenue growth.

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	125.54B	123.35B	135.70B	154.20B	126.79B	117.80B
Gross Profit	12.85B	12.19B	-541.00M	13.94B	17.00B	19.02B
EBITDA	8.12B	4.70B	-3.73B	7.94B	13.82B	13.03B
Net Income	586.00M	1.33B	-7.19B	3.29B	7.39B	7.71B
Balance Sheet
Total Assets	143.63B	140.65B	145.68B	162.34B	154.72B	148.77B
Cash, Cash Equivalents and Short-Term Investments	17.15B	18.14B	21.95B	24.17B	47.59B	46.95B
Total Debt	35.26B	30.02B	30.00B	29.93B	30.03B	35.67B
Total Liabilities	77.73B	74.22B	77.09B	84.31B	74.78B	74.56B
Stockholders Equity	65.69B	66.22B	68.44B	77.88B	79.15B	73.83B
Cash Flow
Free Cash Flow	6.72B	-430.00M	-5.02B	-15.26B	1.54B	396.00M
Operating Cash Flow	7.27B	3.79B	-1.26B	-11.06B	3.76B	4.57B
Investing Cash Flow	1.10B	-3.88B	1.47B	-6.31B	4.33B	-2.17B
Financing Cash Flow	-6.81B	-3.79B	-2.09B	-6.12B	-8.08B	16.91B

JDC CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 542.00
• 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 JP:1887, the sentiment is Positive. The current price of 542 is above the 20-day moving average (MA) of 534.63, above the 50-day MA of 523.18, and above the 200-day MA of 482.79, indicating a bullish trend. The MACD of 5.55 indicates Negative momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 56.06 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	¥43.98B	12.16	―	4.02%	2.85%	317.62%
1899	79 Outperform	¥59.57B	10.71	―	2.60%	1.71%	14.20%
1815	68 Neutral	¥55.83B	19.86	―	2.89%	-3.59%	49.34%
1929	68 Neutral	¥51.13B	18.04	―	3.85%	11.81%	52.35%
1813	65 Neutral	¥37.43B	11.70	―	2.30%	12.93%	98.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1887	56 Neutral	€42.57B	47.69	1.27%	3.68%	-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.

The most recent analyst rating on (JP:1887) stock is a Hold with a Yen512.00 price target. To see the full list of analyst forecasts on JDC CORPORATION stock, see the JP:1887 Stock Forecast page.

JDC Corporation Announces Correction to Financial Results

JDC Corporation announced a correction to its previously released consolidated financial results for the fiscal year ended May 31, 2025. The correction addresses calculation errors in the financial statements, specifically related to non-recourse debts, but does not affect the company’s profit or loss.

The most recent analyst rating on (JP:1887) stock is a Hold with a Yen463.00 price target. To see the full list of analyst forecasts on JDC CORPORATION stock, see the JP:1887 Stock Forecast page.