J-Holdings Corp. (Japan) (2721) AI Stock Analysis

• Market Cap: ¥1.76B
• Dividend Yield: N/A
• Average Volume (3M): 242.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -19.83%
• EPS Growth: 39.61%
• Country: JP
• Employees: 12
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -3.88
• Shares Outstanding: 9,728,500
• 10 Day Avg. Volume: 383,590
• 30 Day Avg. Volume: 242,970
• PEG Ratio: -0.12
• Price to Book (P/B): -33.10
• Price to Sales (P/S): 6.08
• P/FCF Ratio: -4.98
• 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: 42 Neutral
• Price Target: ¥205.00 ▲(8.47% Upside)

The score is primarily held down by weak financial performance—persistent losses, ongoing cash burn, and negative equity in 2024. Technical indicators are neutral-to-weak (below key longer-term moving averages with negative MACD), and valuation support is limited because the negative P/E reflects unprofitability and no dividend yield is available.

Positive Factors

Gross margin expansion

A meaningful, sustained rise in gross margin signals improved economics of the core services or better pricing/inputs. If maintained, higher gross margin provides a structural buffer to cover SG&A and supports a credible path to profitability as revenue stabilizes or grows.

Historically low absolute debt levels

Relatively low absolute debt historically gives the company flexibility versus highly leveraged peers, easing near-term liquidity strain and the need for immediate refinancing. This structural conservatism can lengthen runway while management addresses profitability.

Cash and accounting alignment

When free cash flow moves in step with net income, it indicates fewer large non-cash distortions and clearer cash economics. That transparency aids forecasting and long-term planning, helping investors and management assess realistic capital needs and turnaround timelines.

Negative Factors

Persistent operating and net losses

Multi-year operating and net losses indicate the core business is not yet self-sustaining. Ongoing losses erode reserves, make reinvestment harder, and increase reliance on external funding. Persisting deficits over several years raise the structural risk of business viability.

Chronic negative operating and free cash flow

Sustained negative operating and free cash flow means the business does not generate internal funds to fund operations or growth. Over months, this necessitates external financing, constrains strategic options, and elevates default or dilution risk if cash burn persists.

Negative shareholders' equity in 2024

A shift to negative equity is a structural solvency red flag: it limits borrowing options, can breach covenants, and signals accumulated losses. Negative equity materially increases long-term financial risk and reduces the firm's ability to absorb further operational shocks.

J-Holdings Corp. (Japan) Business Overview & Revenue Model

Company Description

J-Holdings Corp. is a Japanese company engaged in various business sectors, focusing primarily on the distribution and retail of consumer goods. It operates through a network of subsidiaries and affiliates, providing a wide range of products and services to meet the diverse needs of its customers. The company is known for its commitment to quality and innovation, striving to enhance consumer experiences in the markets it serves.

How the Company Makes Money

J-Holdings Corp. generates revenue through the sale of consumer goods, leveraging its extensive distribution network to reach a broad customer base. The company partners with both domestic and international suppliers to procure a diverse range of products, which it then distributes to retailers and directly to consumers. Key revenue streams include wholesale and retail sales, with a focus on maximizing operational efficiency and expanding market presence. Strategic partnerships with suppliers and investment in logistics infrastructure are significant factors contributing to the company's earnings.

J-Holdings Corp. (Japan) Financial Statement Overview

Summary

Financials are highly strained: recurring operating and net losses (2021–2024), negative operating and free cash flow throughout, and a 2024 shift to negative shareholders’ equity that raises solvency risk. Gross margin improved materially, but it has not translated into profitability or cash generation.

Income Statement

Profitability is weak and deteriorating: the company has posted operating losses and net losses in every year from 2021–2024, with 2024 net margin deeply negative (about -216%) and negative operating margin as well. Revenue growth is inconsistent and turned down in 2024 (about -8.6% YoY). A key positive is that gross margin expanded sharply in recent years (over 56% in 2024 vs ~10–11% in 2019–2020), but operating costs/other items are overwhelming gross profit, keeping the company materially unprofitable.

Balance Sheet

Balance sheet risk has increased materially: 2024 shows negative shareholders’ equity, which weakens financial flexibility and makes leverage metrics less meaningful (debt-to-equity turns negative due to the equity deficit). Total debt is not large in absolute terms in 2024, but the shift from positive equity in 2023 to a deficit in 2024 is a major red flag. While the company previously carried low debt (2021–2023), the current equity position suggests elevated solvency risk if losses persist.

Cash Flow

Cash generation is consistently poor: operating cash flow is negative every year shown (including 2024), and free cash flow is also negative across the period, indicating the business is not self-funding. Cash flow trends do not show a durable turnaround (2024 is worse than 2023 on operating and free cash flow). One minor offset is that free cash flow roughly tracks net income in magnitude (both negative), but the persistent cash burn remains the central concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.22M	179.57M	175.00M	111.82M	116.20M	1.22B
Gross Profit	77.88M	101.57M	101.00M	41.12M	47.15M	128.11M
EBITDA	-261.29M	-322.94M	-166.00M	-235.38M	-144.98M	79.25M
Net Income	-269.32M	-387.70M	-296.00M	-270.20M	-150.93M	66.81M
Balance Sheet
Total Assets	513.32M	248.62M	331.00M	515.67M	256.19M	444.53M
Cash, Cash Equivalents and Short-Term Investments	162.86M	53.00M	23.00M	124.69M	85.67M	220.81M
Total Debt	0.00	70.00M	0.00	0.00	0.00	227.00K
Total Liabilities	442.60M	281.69M	50.00M	36.34M	24.81M	62.22M
Stockholders Equity	70.71M	-33.00M	281.00M	479.33M	231.38M	382.31M
Cash Flow
Free Cash Flow	0.00	-219.46M	-204.00M	-164.68M	-90.85M	-361.29M
Operating Cash Flow	0.00	-219.14M	-198.00M	-144.99M	-85.12M	-358.08M
Investing Cash Flow	0.00	-71.48M	-2.00M	-339.82M	207.00K	-3.43M
Financing Cash Flow	0.00	320.75M	99.00M	523.82M	-227.00K	501.56M

J-Holdings Corp. (Japan) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 189.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2721, the sentiment is Negative. The current price of 189 is below the 20-day moving average (MA) of 194.50, below the 50-day MA of 190.46, and below the 200-day MA of 192.74, indicating a bearish trend. The MACD of 0.72 indicates Positive momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 24.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2721.

J-Holdings Corp. (Japan) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9342	72 Outperform	¥3.03B	23.27	―	0.22%	5.29%	22.75%
8946	66 Neutral	¥1.90B	12.10	―	―	85.59%	330.15%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9816	65 Neutral	¥2.76B	16.28	―	1.51%	1.82%	332.58%
9635	63 Neutral	¥2.58B	6.92	―	―	1.57%	892.96%
2997	50 Neutral	¥1.82B	15.36	―	―	46.85%	27.62%
2721	42 Neutral	¥1.76B	-5.33	―	―	-19.83%	39.61%