JM Holdings Co., Ltd. (3539) AI Stock Analysis

• Market Cap: ¥88.41B
• Dividend Yield: 0.7%
• Average Volume (3M): 41.14K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.19
• Revenue Growth: 8.48%
• EPS Growth: 26.56%
• Country: JP
• Employees: 1,444
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 10.70
• Shares Outstanding: 50,959,000
• 10 Day Avg. Volume: 27,690
• 30 Day Avg. Volume: 41,140
• PEG Ratio: 0.50
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 28.28
• 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: 75 Outperform
• Price Target: ¥1,897.00 ▲(12.92% Upside)
• Action: Reiterated Date: 10/03/25
• Date: Action: Reiterated 10/03/25

JM Holdings Co., Ltd. receives a strong overall score due to its robust financial performance, characterized by consistent revenue growth and solid profitability metrics. The technical analysis indicates a neutral trend with potential upward momentum, while the valuation suggests the stock is reasonably priced. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue & Margin Trends

Consistent revenue growth with sustainable gross and mid-single-digit operating margins indicates resilient demand and effective cost control in grocery operations. These durable profitability metrics support reinvestment, operational stability and a steady earnings base over the medium term.

Conservative Capital Structure

A low debt-to-equity ratio and high equity ratio provide financial flexibility to fund growth, weather downturns, and maintain investment capacity. Strong ROE shows efficient use of capital, underpinning sustainable shareholder returns if leverage remains controlled.

Operating Cash Generation

Operating cash flow roughly matching net income demonstrates quality earnings and steady internal funding for working capital and capex. Reliable cash generation is a durable foundation for funding expansion and supporting dividends or debt service over multiple quarters.

Negative Factors

Weak Free Cash Flow Conversion

Low conversion of earnings into free cash flow constrains the company’s ability to fund discretionary investments, pay higher dividends, or accelerate debt reduction without external financing. Persistently weak FCF limits long-term financial optionality and capital allocation flexibility.

Thin Net Profit Margin

A sub‑4% net margin leaves limited buffer against input cost inflation, wage pressures, or pricing competition typical in grocery retail. Structural margin thinness makes earnings and cash flow more sensitive to margin compression or sustained cost shocks over the medium term.

Rising Debt Trend

Although leverage is low today, an upward trend in debt raises the risk that financial flexibility could erode if the company borrows to fund expansion or cover FCF shortfalls. Continued increases would heighten interest and refinancing exposure across economic cycles.

JM Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

JM Holdings Co.,Ltd. engages in the wholesale and retail of meat, general food, fruit, fresh fish, and side dishes in Japan. It offers its products through supermarkets and stores. The company was formerly known as Japan Meat Co.,Ltd. JM Holdings Co.,Ltd. was incorporated in 1978 and is based in Tsuchiura, Japan.

How the Company Makes Money

JM Holdings generates revenue through multiple streams, including rental income from its real estate portfolio, proceeds from property sales, and management fees associated with its investment projects. The company capitalizes on its extensive network and industry relationships to identify profitable investment opportunities. Additionally, JM Holdings has formed strategic partnerships with local developers and financial institutions, which facilitate access to capital and enhance project viability. Its emphasis on renewable energy projects also positions the company to benefit from government incentives and growing market demand for sustainable solutions.

JM Holdings Co., Ltd. Financial Statement Overview

Summary

JM Holdings Co., Ltd. shows strong financial health with consistent revenue growth and solid profitability metrics. The balance sheet reflects a stable capital structure with low leverage, while the cash flow statement indicates healthy cash generation. Despite some challenges in free cash flow growth, the company's financial performance is commendable.

Income Statement

JM Holdings Co., Ltd. has demonstrated strong revenue growth, with a 6.41% increase in the latest year. The company maintains healthy profit margins, with a gross profit margin of 28.70% and a net profit margin of 3.47%. EBIT and EBITDA margins are also solid at 5.40% and 6.87%, respectively, indicating efficient operations. The consistent improvement in revenue and profitability metrics reflects a positive trajectory in the grocery industry.

Balance Sheet

The balance sheet of JM Holdings Co., Ltd. shows a stable financial position with a low debt-to-equity ratio of 0.20, indicating prudent financial management. The return on equity is strong at 14.31%, showcasing effective use of shareholder funds. The equity ratio stands at 62.05%, suggesting a solid capital structure. However, the slight increase in debt levels over the years warrants monitoring.

Cash Flow

The cash flow statement reveals a robust operating cash flow, although there is a notable decline in free cash flow growth. The operating cash flow to net income ratio is 1.03, indicating good cash generation relative to net income. However, the free cash flow to net income ratio of 0.39 suggests room for improvement in converting earnings into free cash flow. The company should focus on enhancing free cash flow generation to support future growth.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	186.21B	172.33B	154.81B	140.84B	129.82B
Gross Profit	53.44B	49.21B	44.01B	39.34B	36.90B
EBITDA	12.79B	11.23B	9.60B	8.96B	8.61B
Net Income	6.46B	5.46B	4.42B	4.27B	4.25B
Balance Sheet
Total Assets	72.72B	71.36B	65.57B	58.87B	55.39B
Cash, Cash Equivalents and Short-Term Investments	18.30B	22.41B	17.81B	19.50B	20.36B
Total Debt	8.84B	9.38B	9.91B	6.30B	6.22B
Total Liabilities	27.38B	27.59B	26.16B	22.98B	23.04B
Stockholders Equity	45.13B	43.58B	39.03B	35.70B	32.22B
Cash Flow
Free Cash Flow	2.62B	6.86B	-194.00M	926.00M	3.90B
Operating Cash Flow	6.64B	9.66B	4.22B	5.18B	7.27B
Investing Cash Flow	-6.42B	-5.34B	-2.15B	-3.74B	-5.09B
Financing Cash Flow	-5.72B	-2.24B	-1.88B	-1.05B	-1.58B

JM Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1680.00
• 50DMA: Negative
• 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:3539, the sentiment is Neutral. The current price of 1680 is below the 20-day moving average (MA) of 1760.74, below the 50-day MA of 1703.55, and above the 200-day MA of 1480.36, indicating a neutral trend. The MACD of 5.42 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 19.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3539.

JM Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8198	78 Outperform	¥124.11B	11.28	―	1.92%	2.30%	26.52%
9974	76 Outperform	¥162.55B	13.11	―	1.64%	10.13%	23.77%
7508	76 Outperform	¥66.28B	12.51	―	2.85%	11.38%	4.28%
3539	75 Outperform	¥88.41B	14.00	―	0.70%	8.48%	26.56%
8167	74 Outperform	¥61.86B	11.75	―	3.31%	4.92%	19.73%
8194	72 Outperform	¥235.94B	13.07	―	2.43%	4.48%	13.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

JM Holdings Co., Ltd. Corporate Events

JM Holdings Lifts Sales and Operating Profit but Quarterly Net Profit Slips as It Confirms Full-Year Outlook

JM Holdings reported consolidated net sales of ¥47.7 billion for the three months ended October 31, 2025, up 8.2% year on year, with operating and ordinary profit rising about 19% each, although profit attributable to owners of parent fell 20.7% to ¥545 million. Total assets edged up to ¥74.6 billion while net assets remained essentially flat at ¥45.3 billion, and the equity ratio slipped slightly to 60.5%. The company completed a 2-for-1 stock split effective November 1, 2025, and, factoring in the split, forecasts an annual dividend of ¥24 per share for the fiscal year ending July 31, 2026, equivalent to ¥48 on a pre-split basis. For the full fiscal year 2026, JM Holdings is maintaining its forecast of ¥196.0 billion in net sales and ¥7.0 billion in profit attributable to owners of parent, representing mid-single to high-single-digit growth and signaling confidence in sustained earnings expansion and continued shareholder returns despite the short-term dip in quarterly bottom-line profit.

The most recent analyst rating on (JP:3539) stock is a Buy with a Yen3346.00 price target. To see the full list of analyst forecasts on JM Holdings Co., Ltd. stock, see the JP:3539 Stock Forecast page.