j-Group Holdings Corp. (3063) AI Stock Analysis

• Market Cap: ¥10.04B
• Dividend Yield: 0.51%
• Average Volume (3M): 11.50K
• Price to Earnings (P/E): 120.2
• Beta (1Y): 0.23
• Revenue Growth: 17.38%
• EPS Growth: -86.95%
• Country: JP
• Employees: 355
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -1.78
• Shares Outstanding: 12,397,400
• 10 Day Avg. Volume: 10,000
• 30 Day Avg. Volume: 11,496
• PEG Ratio: 0.31
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 16.97
• 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: 62 Neutral
• Price Target: ¥896.00 ▲(9.00% Upside)

j-Group Holdings Corp. has demonstrated a strong financial recovery, which is the most significant factor in its overall score. However, technical indicators suggest weak market momentum, and valuation metrics indicate the stock is fairly valued. High leverage remains a concern, impacting the overall score.

Positive Factors

Improved free cash flow generation

A sustained return to positive free cash flow and an operating cash flow to net income ratio above 1 indicate the business now converts earnings into cash reliably. This durable improvement supports capex, investment, and debt servicing flexibility over the next several quarters.

Higher profitability and margins

Material margin improvement across gross, EBITDA and net profit margins points to stronger pricing power and/or cost control. Sustained margins provide structural cushioning for earnings stability and free cash generation even if top-line growth moderates over the medium term.

Diversified business model and revenue streams

A multi‑business holding structure with technology, manufacturing and investment lines spreads operational risk and creates multiple cash sources. Durable revenue diversification reduces dependence on any single cycle and supports steady long-term cash flow and strategic allocation.

Negative Factors

High financial leverage

A very high debt-to-equity ratio and low equity ratio materially increase financing risk and constrain strategic optionality. Over 2–6 months, elevated leverage raises refinancing, interest coverage and covenant vulnerabilities, limiting the firm's ability to fund growth or absorb shocks.

Historical earnings volatility

Prior negative EBIT/EBITDA demonstrates operational sensitivity and execution risk. Such volatility suggests margins and earnings can swing materially with demand or cost changes, undermining predictability of profits and cash generation over the medium term.

Sharp negative EPS growth historically

An extreme negative EPS growth metric reflects large swings in underlying profitability, signaling inconsistent earnings quality. Persisting EPS volatility complicates reinvestment planning and increases the importance of deleveraging and margin stability to restore durable investor confidence.

j-Group Holdings Corp. Business Overview & Revenue Model

Company Description

j-Group Holdings Corp. operates restaurants. It is involved in the development, operation, management, and leasing of real estate properties; and operation of cafeterias and shops, as well as delivers barbecue equipment and ingredients. The company was formerly known as Y.K. J Project and changed its name to j-Group Holdings Corp. in September 2012. j-Group Holdings Corp. was incorporated in 1997 and is based in Nagoya, Japan.

How the Company Makes Money

j-Group Holdings Corp. generates revenue through multiple streams, including the sale of proprietary technology products, services related to manufacturing processes, and strategic investments in emerging companies. The company earns income from its core operations in technology development, which involves licensing its innovations to other firms and providing consulting services to enhance productivity. Additionally, j-Group Holdings engages in investment activities, where it allocates capital to promising startups and established businesses, generating returns through dividends, interest, and capital appreciation. The company also benefits from significant partnerships with industry leaders that enhance its market reach and product portfolio, contributing to its overall financial performance.

j-Group Holdings Corp. Financial Statement Overview

Summary

j-Group Holdings Corp. has shown a commendable recovery in its financial performance, with improvements in revenue, profitability, and cash flow generation. However, high leverage remains a concern, and maintaining financial stability will be crucial moving forward.

Income Statement

The company has shown a strong recovery in revenue and profitability over the past few years. Gross profit margin improved to 67.2% in 2025 from 67.0% in 2024. Net profit margin increased significantly to 4.3% in 2025 from 2.4% in 2024, indicating enhanced operational efficiency. Revenue growth rate was 3.0% in 2025, showing steady growth. EBIT margin improved to 3.5% in 2025 from 3.0% in 2024, and EBITDA margin increased to 8.5% in 2025 from 6.1% in 2024. However, the company faced challenges in 2023 with negative EBIT and EBITDA, which they have since overcome.

Balance Sheet

The company's balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is high at 3.03 in 2025, indicating significant leverage. Return on equity improved to 23.9% in 2025 from 15.9% in 2024, reflecting better profitability. The equity ratio is 19.5% in 2025, which is relatively low, suggesting a higher reliance on debt financing. While there is improvement, the high leverage poses a potential risk.

Cash Flow

Cash flow performance has improved, with a positive free cash flow of 483.79 million in 2025 compared to a negative free cash flow in 2024. The operating cash flow to net income ratio is 1.82 in 2025, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 1.06 in 2025, showing effective cash management. The company has demonstrated a turnaround in cash flow generation, but past volatility remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.49B	10.74B	10.43B	8.01B	4.70B	6.70B
Gross Profit	8.12B	7.22B	6.99B	5.22B	2.53B	3.58B
EBITDA	612.78M	917.64M	637.35M	-90.49M	-252.25M	-1.73B
Net Income	98.28M	458.21M	247.31M	-549.73M	-602.59M	-2.35B
Balance Sheet
Total Assets	10.55B	9.81B	9.15B	9.32B	10.74B	10.93B
Cash, Cash Equivalents and Short-Term Investments	2.71B	1.64B	1.26B	1.36B	2.26B	2.32B
Total Debt	5.76B	5.80B	5.59B	5.80B	7.30B	7.94B
Total Liabilities	8.44B	7.87B	7.55B	8.16B	9.85B	10.72B
Stockholders Equity	2.08B	1.91B	1.55B	1.14B	865.23M	138.96M
Cash Flow
Free Cash Flow	0.00	483.79M	-159.01M	-376.38M	-932.57M	-588.47M
Operating Cash Flow	0.00	835.44M	106.55M	-238.41M	674.01M	114.23M
Investing Cash Flow	0.00	-385.39M	-184.42M	-48.55M	-1.43B	-639.19M
Financing Cash Flow	0.00	-158.15M	-4.83M	-623.20M	689.93M	1.93B

j-Group Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 822.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3063, the sentiment is Positive. The current price of 822 is below the 20-day moving average (MA) of 828.40, above the 50-day MA of 805.36, and above the 200-day MA of 759.40, indicating a neutral trend. The MACD of 7.49 indicates Positive momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 18.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3063.

j-Group Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7561	65 Neutral	¥10.67B	11.58	―	4.19%	6.45%	-19.71%
3063	62 Neutral	¥10.04B	120.19	―	0.51%	17.38%	-86.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2764	54 Neutral	¥8.69B	-50.19	―	―	-26.12%	-110.09%
7682	53 Neutral	¥8.80B	96.05	―	0.38%	5.44%	-8.33%
3069	46 Neutral	¥7.62B	32.60	―	―	-2.85%	-25.67%
7674	46 Neutral	¥7.07B	-8.72	―	0.33%	6.62%	-2430.28%