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

• Market Cap: ¥6.89B
• Dividend Yield: 2.78%
• Average Volume (3M): 26.35K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.80
• Revenue Growth: 13.58%
• EPS Growth: 20.32%
• Country: JP
• Employees: 410
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 34.51
• 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: ¥1,582.00 ▲(11.49% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Debt-Free Balance Sheet

A debt-free balance sheet lowers financial risk and enhances resilience, providing flexibility to invest in growth opportunities without financial strain.

Improving Profitability

Improving profitability reflects effective cost management and operational efficiency, which can enhance shareholder value over the long term.

Negative Factors

Uneven Cash Conversion

Uneven cash conversion indicates potential volatility in cash flow, which can affect the company's ability to fund operations and growth consistently.

Modest Gross Margin

A modest gross margin suggests limited pricing power, indicating the company may rely heavily on volume to drive earnings, which could pressure margins in competitive environments.

Cash Flow Volatility

While free cash flow growth is strong, volatility in cash conversion could lead to challenges in managing working capital and funding strategic initiatives effectively.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• RSI: Positive
• STOCH: Positive

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 1349.50, above the 50-day MA of 1396.28, and above the 200-day MA of 1396.15, indicating a bearish trend. The MACD of -41.89 indicates Positive momentum. The RSI at 24.89 is Positive, neither overbought nor oversold. The STOCH value of 15.38 is Positive, 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
2332	80 Outperform	¥9.50B	13.32	―	3.16%	14.02%	2.74%
3940	75 Outperform	¥6.35B	15.79	―	2.43%	2.92%	-0.94%
2488	73 Outperform	¥6.89B	11.65	―	2.78%	13.58%	20.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2375	61 Neutral	¥4.51B	16.11	―	0.94%	-12.25%	―
2493	57 Neutral	¥4.47B	30.42	―	0.53%	17.13%	-41.14%