JTP Co., Ltd. (2488) AI Stock Analysis

• Market Cap: ¥6.83B
• Dividend Yield: 2.78%
• Average Volume (3M): 26.35K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.74
• Revenue Growth: 13.58%
• EPS Growth: 20.32%
• Country: JP
• Employees: 410
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 23.28
• Shares Outstanding: 6,015,600
• 10 Day Avg. Volume: 22,040
• 30 Day Avg. Volume: 26,346
• PEG Ratio: 0.76
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 9.18
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,363.00 ▼(-3.95% Downside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is driven primarily by strong financial quality (steady growth, improving profitability, and a debt-free balance sheet). Valuation is also attractive (moderate P/E and healthy dividend yield). These positives are tempered by weaker technical momentum (negative MACD and trading below key moving averages).

Positive Factors

Debt-free balance sheet

Zero reported debt materially lowers financial risk and enhances resilience across cycles. A debt-free balance sheet gives management durable flexibility for capex, dividends, or opportunistic M&A without solvency constraints, supporting capital allocation even in downturns.

Consistent revenue growth & rising margins

Sustained revenue growth with improving operating margin demonstrates expanding market traction and operational leverage. This structural trend increases earnings durability, funds reinvestment in the business, and reduces dependency on cyclical demand spikes for medium-term profitability.

Strong free cash flow generation

Free cash flow that closely matches earnings and a sharp FY2025 rebound indicate solid cash-generation capacity. Reliable FCF supports sustainable dividends, internal investment and balance-sheet resilience, providing a durable funding source despite short-term working-capital swings.

Negative Factors

Uneven cash conversion

Persistent gaps where operating cash flow trails net income point to working-capital volatility or timing effects. Over time this can strain liquidity for capex and dividends, reduce predictability of free cash conversion, and increase the risk that reported profits don’t translate into available cash.

Modest gross margins

A ~20% gross margin implies limited pricing power and reliance on volume or utilization to drive profits. Structurally lower margins leave earnings exposed to cost inflation and competitive pricing pressure, constraining the company’s ability to expand net income without clear higher-margin offerings.

Limited leverage to boost returns

Absence of debt reduces risk but also limits tools to amplify shareholder returns via leverage. Long-term ROE improvement must come from revenue growth or margin expansion, increasing execution risk on management to deliver operational improvements rather than using capital structure to enhance returns.

JTP Co., Ltd. Business Overview & Revenue Model

Company Description

JTP Co.,Ltd. provides outsourced technical services to technology companies in Japan. The company offers integration services, including consultation, system design and integration, system development, operation and maintenance, training program for users, helpdesk, and supply chain management for users. It also provides training services, such as delivering training programs, preparing and cultivating training staff, promoting training programs, rental lesson venues, and localizing course materials. In addition, the company offers medical devices support services comprising medical device repairs and maintenance, substitute device, sales support, technological implementation support, and help desk; and analytical instruments solutions, which consists of technical support on delivery, maintenance, help desk, equipment and software localization, and lab management system. Further, it engages in the development of custom application; sale and rental of robots; importing and localization; and provision of robotics business consulting, and technical support services. Additionally, the company provides digital marketing services; and GAIT for IT skill assessments. The company was formerly known as Japan Third Party Co., Ltd. and changed its name to JTP Co.,Ltd. in April 2021. JTP Co.,Ltd. was incorporated in 1987 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JTP Co., Ltd. generates revenue through its diverse portfolio of IT services. Its primary revenue streams include fees from software development projects, which involve creating custom software solutions tailored to specific client needs. Additionally, the company earns income from systems integration services, where it implements and integrates IT systems to ensure seamless operation across different platforms. IT infrastructure management also contributes to its earnings, as the company provides ongoing support and maintenance services for clients' IT environments. Partnerships with technology providers and a strong client base in different industries further bolster its revenue, allowing the company to leverage new technologies and expand its service offerings.

JTP Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: consistent revenue growth with improving operating margin and a very conservative, debt-free balance sheet. The main offset is uneven cash conversion, with operating cash flow persistently below net income despite healthy free cash flow.

Income Statement

Revenue growth has been consistently positive and accelerated in the last two years (about 10% in FY2024 and ~13% in FY2025). Profitability also improved versus earlier years: operating margin rose to ~8.2% in FY2025 (from ~5.6% in FY2021) and net margin is steady around ~6.1% in FY2025. Offsetting this, gross margin remains modest for the sector (~20% in FY2025), suggesting limited pricing power and a business model that likely relies on volume and utilization to drive earnings.

Balance Sheet

The balance sheet is very conservative with zero debt across all reported years, which meaningfully lowers financial risk and improves resilience in downturns. Equity has grown steadily (from ~¥2.0B in FY2020 to ~¥3.7B in FY2025) and returns on equity are healthy (~15% in FY2025). The main limitation is that, with no leverage, future return expansion depends primarily on operational execution rather than balance-sheet optimization.

Cash Flow

Cash generation is generally solid: free cash flow closely tracks earnings (free cash flow to net income ~0.95 in FY2025), and FY2025 showed a sharp rebound in free cash flow growth (~68%). However, cash conversion is somewhat uneven—operating cash flow has been below net income in every year shown (about 0.52x in FY2025 and as low as ~0.19x in FY2021), indicating working-capital swings or timing effects that can create volatility even when reported profits are growing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.67B	9.21B	8.12B	7.38B	7.04B	6.31B
Gross Profit	1.08B	1.86B	1.53B	1.34B	1.22B	1.11B
EBITDA	399.54M	832.01M	677.14M	498.00M	468.64M	383.55M
Net Income	267.04M	562.70M	482.76M	305.74M	253.15M	267.28M
Balance Sheet
Total Assets	4.79B	5.91B	5.37B	4.79B	4.57B	4.30B
Cash, Cash Equivalents and Short-Term Investments	2.53B	3.30B	2.83B	2.53B	2.23B	1.90B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.86B	2.26B	2.06B	1.86B	1.80B	1.69B
Stockholders Equity	2.93B	3.66B	3.30B	2.93B	2.77B	2.61B
Cash Flow
Free Cash Flow	0.00	739.59M	439.02M	458.22M	468.44M	174.14M
Operating Cash Flow	0.00	776.38M	548.24M	527.01M	503.58M	200.41M
Investing Cash Flow	0.00	-70.89M	-103.59M	-35.13M	-57.20M	-75.35M
Financing Cash Flow	0.00	-242.28M	-145.66M	-172.37M	-118.73M	297.04M

JTP Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1419.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2488, the sentiment is Negative. The current price of 1419 is above the 20-day moving average (MA) of 1244.25, above the 50-day MA of 1331.36, and above the 200-day MA of 1402.93, indicating a bearish trend. The MACD of -27.45 indicates Negative momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 68.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2488.

JTP Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4752	81 Outperform	¥7.15B	8.94	―	3.37%	5.25%	23.64%
3940	78 Outperform	¥6.72B	16.54	―	2.43%	2.92%	-0.94%
5576	77 Outperform	¥6.49B	12.26	―	3.13%	6.08%	0.53%
2488	73 Outperform	¥6.83B	12.04	―	2.78%	13.58%	20.32%
3988	68 Neutral	¥5.84B	14.48	―	1.23%	11.62%	-16.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5026	46 Neutral	¥6.03B	-16.65	―	―	29.55%	-500.01%