JTEC Corp. (Osaka) (3446) AI Stock Analysis

• Market Cap: ¥13.09B
• Dividend Yield: N/A
• Average Volume (3M): 93.54K
• Price to Earnings (P/E): 144.0
• Beta (1Y): 1.36
• Revenue Growth: -1.01%
• EPS Growth: -73.21%
• Country: JP
• Employees: 45
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): N/A
• Shares Outstanding: 5,905,500
• 10 Day Avg. Volume: 57,320
• 30 Day Avg. Volume: 93,543
• PEG Ratio: -1.75
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 3.82
• P/FCF Ratio: 40.28
• 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: 66 Neutral
• Price Target: ¥2,668.00 ▲(124.20% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven by solid financial stability and notably improving cash generation, partially offset by weakening profitability and negative revenue growth. Technicals are strong but appear overbought, and the very high P/E meaningfully weighs on the overall rating.

Positive Factors

Strong balance sheet

Low leverage and a high equity ratio give JTEC durable financial flexibility: the company can fund working capital, R&D or targeted M&A without raising material external debt. This reduces default risk and supports multi-month resilience versus cyclical pressures.

Material cash generation improvement

A large jump in free cash flow and strong operating cash conversion indicate the business now generates real cash from operations. That enhances ability to invest, deleverage or fund product development sustainably over the next 2-6 months regardless of short-term revenue swings.

High gross margin

A ~61% gross margin suggests structural product pricing power or efficient manufacturing for medical instruments. This margin buffer supports profitability recovery potential and competitive differentiation, making the business more resilient to cost or revenue pressures.

Negative Factors

Revenue decline

A double-digit decline in reported revenue signals weakening demand or loss of market share in core products. Persisting top-line contraction reduces operating leverage and constrains sustainable earnings and reinvestment capacity over the medium term if not reversed.

Compressed net margins

Sharp net margin compression indicates rising costs, pricing pressure, or deteriorating mix. Lower margin realization weakens cash available for growth or returns and increases sensitivity to revenue swings, challenging long-term profitability unless structural fixes are implemented.

Weak ROE and EPS deterioration

Declining ROE and a large negative EPS growth point to poor shareholder return and volatile profitability. This suggests the company is struggling to convert capital into earnings, raising concerns about sustainable earnings power and capital allocation effectiveness.

JTEC Corp. (Osaka) Business Overview & Revenue Model

Company Description

JTEC Corporation designs, manufactures, and sells X-ray mirrors for synchrotron facilities in Japan. Its X-ray mirrors are used for study in the pharmaceutical, electronic, material, food, beauty, and other fields. The company also designs, develops, manufactures, and sells automated cell culture systems, as well as automated systems in various fields. JTEC Corporation was founded in 1993 and is headquartered in Ibaraki, Japan.

How the Company Makes Money

JTEC Corp. generates revenue through the sale of its electronic components and systems to a diverse range of customers, including manufacturers in the automotive and telecommunications sectors. The company operates on a business-to-business (B2B) model, where it supplies both standard and customized solutions tailored to meet specific client needs. Key revenue streams include direct sales of products, long-term contracts with major clients, and partnerships with technology firms for collaborative development projects. Additionally, JTEC benefits from providing ongoing support and maintenance services, which further contribute to its earnings. The company also explores joint ventures and strategic alliances to expand its market reach and enhance its product offerings, thereby creating additional revenue opportunities.

JTEC Corp. (Osaka) Financial Statement Overview

Summary

Mixed fundamentals: revenue growth declined (-11.42%) and net margin fell sharply (9.93% to 3.13%), but the balance sheet is strong with low leverage (debt-to-equity 0.18, equity ratio 75.3%) and cash flow improved materially (free cash flow growth +775.70% with strong cash conversion).

Income Statement

JTEC Corp. has shown a mixed performance in its income statement. The company experienced a decline in revenue growth rate by 11.42% in the latest year, indicating a potential challenge in maintaining sales momentum. However, the gross profit margin remains strong at approximately 61.2%, suggesting efficient cost management. The net profit margin has decreased significantly from 9.93% to 3.13%, reflecting pressure on profitability. The EBIT and EBITDA margins have also contracted, indicating reduced operational efficiency.

Balance Sheet

The balance sheet of JTEC Corp. reflects a stable financial position with a debt-to-equity ratio of 0.18, indicating low leverage and financial risk. The equity ratio stands at 75.3%, showcasing a strong equity base relative to total assets. However, the return on equity has decreased to 2.17%, suggesting a decline in profitability for shareholders. Overall, the balance sheet remains robust with a solid equity foundation.

Cash Flow

JTEC Corp.'s cash flow statement highlights a significant improvement in free cash flow growth, which surged by 775.70%, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is favorable at 4.75, suggesting strong cash conversion from earnings. The free cash flow to net income ratio is 3.03, reflecting efficient cash management. Overall, the cash flow position is strong, with positive trends in cash generation.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.01B	1.93B	2.01B	1.91B	1.15B	820.35M
Gross Profit	1.25B	1.18B	1.25B	1.16B	699.91M	330.70M
EBITDA	307.44M	264.89M	437.18M	510.65M	107.47M	-146.19M
Net Income	90.61M	60.35M	199.59M	238.19M	-32.13M	-170.71M
Balance Sheet
Total Assets	3.48B	3.69B	3.57B	3.47B	3.23B	3.38B
Cash, Cash Equivalents and Short-Term Investments	793.30M	712.38M	610.23M	783.13M	732.32M	550.70M
Total Debt	461.45M	495.51M	521.96M	597.42M	672.88M	948.33M
Total Liabilities	825.65M	912.60M	870.75M	986.11M	999.32M	1.12B
Stockholders Equity	2.66B	2.78B	2.70B	2.48B	2.23B	2.26B
Cash Flow
Free Cash Flow	-5.44M	182.82M	-79.67M	127.95M	171.16M	-178.24M
Operating Cash Flow	127.57M	286.48M	62.65M	210.36M	284.19M	-144.49M
Investing Cash Flow	-133.16M	-104.29M	-160.71M	-84.74M	-132.59M	-831.52M
Financing Cash Flow	-85.90M	-79.91M	-75.53M	-75.50M	-273.58M	948.23M

JTEC Corp. (Osaka) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1190.00
• 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:3446, the sentiment is Positive. The current price of 1190 is below the 20-day moving average (MA) of 1795.60, below the 50-day MA of 1480.34, and below the 200-day MA of 1318.31, indicating a bullish trend. The MACD of 211.01 indicates Negative momentum. The RSI at 62.99 is Neutral, neither overbought nor oversold. The STOCH value of 47.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3446.

JTEC Corp. (Osaka) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4543	69 Neutral	¥3.12T	24.33	9.31%	1.22%	7.68%	10.08%
6869	68 Neutral	¥917.95B	20.51	9.80%	1.88%	1.51%	-12.59%
3446	66 Neutral	¥13.09B	144.04	―	―	-1.01%	-73.21%
8086	62 Neutral	¥259.41B	17.06	4.38%	2.03%	6.04%	733.13%
7733	60 Neutral	¥1.68T	20.24	13.13%	1.01%	0.42%	34.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

JTEC Corp. (Osaka) Corporate Events

JTEC Narrows Interim Loss and Affirms Forecast of Strong Profit Rebound for FY2026

JTEC Corp. reported consolidated net sales of ¥646 million for the six months ended December 31, 2025, a 14.5% year-on-year increase, while narrowing its loss attributable to owners of parent to ¥138 million. Despite continued operating and ordinary losses, the company maintained a high equity ratio of 76.3% and slightly reduced total assets and net assets compared with June 30, 2025.

The company kept its interim dividend at zero and reiterated its full-year forecast for the fiscal year ending June 30, 2026, targeting ¥2,655 million in net sales and ¥172 million in profit attributable to owners of parent. If achieved, these projections would mark a strong turnaround to profitability and significant growth in sales and earnings, signaling a potential improvement in financial performance for shareholders and other stakeholders.

The most recent analyst rating on (JP:3446) stock is a Hold with a Yen1630.00 price target. To see the full list of analyst forecasts on JTEC Corp. (Osaka) stock, see the JP:3446 Stock Forecast page.