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

• Market Cap: ¥77.97B
• Dividend Yield: 0.7%
• Average Volume (3M): 41.14K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.25
• Revenue Growth: 8.48%
• EPS Growth: 26.56%
• Country: JP
• Employees: 1,444
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 38.52
• Shares Outstanding: 50,959,000
• 10 Day Avg. Volume: 27,690
• 30 Day Avg. Volume: 41,140
• PEG Ratio: 0.99
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 56.55
• 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): 141.3
• Revenue Forecast (FY): ¥200.40B

• Rating: 75 Outperform
• Price Target: ¥1,835.00 ▲(9.23% 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

Consistent Revenue Growth

Sustained revenue growth (6.41% in the latest year) reflects steady demand and expanding sales scale in the grocery segment. Over the next 2-6 months this underpins predictable cash flows, supports reinvestment in stores and supply chain, and reduces execution risk versus cyclical peers.

Efficient Capital Returns (ROE)

A 14.31% ROE indicates productive deployment of shareholder capital and operational leverage. This durable efficiency supports the company’s ability to fund growth internally, sustain dividends or buybacks, and weather sector pressure without immediate reliance on external financing.

Solid Operating Cash Generation

Operating cash flow roughly equals reported net income (ratio 1.03), showing cash quality of earnings and reliable liquidity generation. This sustained cash conversion helps fund working capital, routine capex and servicing obligations, improving resilience in a low-margin retail industry.

Negative Factors

Weak Free Cash Flow Conversion

Free cash flow converts only 39% of net income, indicating material cash tied up in capex or working capital or episodic outflows. Over months this constrains discretionary spending, limits rapid deleveraging or expansion, and reduces the buffer for margin shocks or strategic investments.

Rising Debt Trend to Monitor

Although current leverage is low (debt-to-equity 0.20), the noted incremental debt rise reduces future financial flexibility. If the trend continues it could increase interest exposure and constrain capital allocation, especially if macro rates or funding costs rise over the medium term.

Modest Net Profit Margin

A net margin of 3.47% leaves limited cushion against cost inflation or competitive price moves common in groceries. Structurally low margins restrict the company’s ability to absorb shocks, invest aggressively, or materially expand profitability without efficiency gains or scale benefits.

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

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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	27.37B	27.59B	26.15B	22.97B	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: Negative
• Last Price: 1680.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3539, the sentiment is Negative. The current price of 1680 is above the 20-day moving average (MA) of 1657.70, below the 50-day MA of 1703.19, and above the 200-day MA of 1517.62, indicating a neutral trend. The MACD of -41.92 indicates Positive momentum. The RSI at 27.66 is Positive, neither overbought nor oversold. The STOCH value of 14.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥114.24B	16.52	―	1.92%	2.30%	26.52%
9974	76 Outperform	¥157.13B	15.86	―	1.64%	10.13%	23.77%
7508	76 Outperform	¥60.99B	7.88	―	2.85%	11.38%	4.28%
3539	75 Outperform	¥77.97B	35.25	―	0.70%	8.48%	26.56%
8167	74 Outperform	¥55.33B	19.57	―	3.31%	4.92%	19.73%
8194	72 Outperform	¥217.94B	15.19	―	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.