Jichodo Co., Ltd. (3597) AI Stock Analysis

• Market Cap: ¥24.11B
• Dividend Yield: 5.25%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.30
• Revenue Growth: -6.67%
• EPS Growth: -7.35%
• Country: JP
• Employees: 185
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 252.20
• Shares Outstanding: 2,882,848
• 10 Day Avg. Volume: 1,300
• 30 Day Avg. Volume: 1,590
• PEG Ratio: -0.55
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 6.96
• 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: 72 Outperform
• Price Target: ―

Jichodo Co., Ltd. exhibits strong financial stability with a debt-free balance sheet and solid margins. However, revenue decline and cash flow issues pose risks. The stock's fair valuation with a high dividend yield offers investor appeal despite bearish technical trends.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, allowing Jichodo to invest in growth opportunities without the burden of interest payments.

Solid Profit Margins

High profit margins indicate efficient production and pricing strategies, contributing to sustainable profitability and competitive advantage in the apparel industry.

Strong Equity Ratio

A high equity ratio reflects a conservative capital structure, reducing financial risk and enhancing the company's ability to withstand economic downturns.

Negative Factors

Revenue Decline

Declining revenue can hinder growth prospects and affect long-term profitability, necessitating strategic initiatives to reverse the trend and capture market opportunities.

Cash Flow Concerns

Lack of operating cash flow raises liquidity concerns, potentially limiting the company's ability to fund operations and invest in growth without external financing.

Earnings Decline

A significant decline in earnings per share indicates challenges in maintaining profitability, which could impact investor confidence and the company's ability to reinvest in its business.

Jichodo Co., Ltd. Business Overview & Revenue Model

Company Description

Jichodo Co., Ltd. (3597) is a Japanese company primarily engaged in the manufacture and sale of workwear and uniforms. The company operates in the apparel sector, focusing on providing high-quality, durable clothing for various industries, including construction, manufacturing, and service sectors. Jichodo is known for its wide range of products that cater to the needs of professionals requiring specialized workwear solutions.

How the Company Makes Money

Jichodo Co., Ltd. generates revenue through the design, production, and sale of workwear and uniforms. The company's key revenue streams include direct sales to businesses and retailers, wholesale distribution, and potential e-commerce platforms. Jichodo's extensive product line, including safety and protective clothing, helps it cater to a broad customer base across different industries. The company's revenue is bolstered by its reputation for quality and durability, which fosters long-term relationships with clients. Additionally, strategic partnerships with manufacturers and suppliers ensure consistent product quality and supply chain efficiency, contributing to its earnings.

Jichodo Co., Ltd. Financial Statement Overview

Summary

Jichodo Co., Ltd. demonstrates strong financial health with a debt-free balance sheet and solid profit margins. However, revenue decline and cash flow concerns indicate potential risks. Focus should be on enhancing revenue and stabilizing cash flows.

Income Statement

Jichodo Co., Ltd. has demonstrated a strong gross profit margin of 31.72% for TTM, indicating efficient production and pricing strategies. However, the company experienced a revenue decline from 2023 to TTM, impacting overall growth. The net profit margin of 10.12% shows solid profitability, yet could be improved. Despite the revenue dip, the EBIT margin is robust at 11.73%, showcasing operational efficiency.

Balance Sheet

The company maintains a strong financial position with no debt, reflected in a debt-to-equity ratio of 0. The equity ratio is impressive at 90.91%, highlighting financial stability and a conservative capital structure. Return on equity stands at a healthy 4.24% for TTM, underscoring effective utilization of shareholder investments despite a slight decline in equity from the previous year.

Cash Flow

Cash flow analysis reveals a mixed scenario. Although the free cash flow has shown fluctuations, the absence of operating cash flow for TTM is concerning. The previous year's free cash flow to net income ratio was healthy, but current cash flow metrics are unavailable, posing potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.45B	14.94B	16.86B	17.74B	16.98B	17.88B
Gross Profit	4.96B	4.57B	5.63B	5.95B	5.47B	5.61B
EBITDA	1.54B	1.77B	2.77B	3.27B	2.42B	2.36B
Net Income	1.49B	1.13B	2.02B	2.46B	2.84B	1.54B
Balance Sheet
Total Assets	41.77B	41.95B	41.61B	42.29B	40.07B	38.99B
Cash, Cash Equivalents and Short-Term Investments	13.72B	13.39B	11.01B	8.70B	9.12B	6.12B
Total Debt	0.00	0.00	0.00	0.00	0.00	1.00B
Total Liabilities	3.94B	3.83B	3.29B	5.19B	5.03B	5.90B
Stockholders Equity	37.83B	38.12B	38.33B	37.10B	35.04B	33.09B
Cash Flow
Free Cash Flow	0.00	3.95B	3.80B	275.68M	3.26B	5.10B
Operating Cash Flow	0.00	3.98B	3.82B	313.68M	3.62B	5.91B
Investing Cash Flow	0.00	-156.81M	-65.12M	133.79M	1.25B	-934.00M
Financing Cash Flow	0.00	-1.44B	-1.44B	-865.79M	-1.87B	-2.37B

Jichodo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9510.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3597, the sentiment is Positive. The current price of 9510 is above the 20-day moving average (MA) of 9428.50, above the 50-day MA of 9387.00, and above the 200-day MA of 9405.66, indicating a bullish trend. The MACD of 47.51 indicates Negative momentum. The RSI at 65.56 is Neutral, neither overbought nor oversold. The STOCH value of 80.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3597.

Jichodo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3580	79 Outperform	¥35.20B	22.27	―	3.24%	6.98%	-42.05%
7856	76 Outperform	¥23.10B	12.43	―	4.08%	1.04%	15.65%
8101	74 Outperform	¥28.50B	11.56	―	4.11%	9.88%	25.92%
3611	74 Outperform	¥22.90B	10.45	―	4.01%	6.29%	22.08%
3597	72 Outperform	¥24.11B	20.07	―	5.25%	-6.67%	-7.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3205	60 Neutral	¥28.75B	―	―	8.94%	-0.88%	-609.34%