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

• Market Cap: ¥23.60B
• Dividend Yield: 6.44%
• Average Volume (3M): 7.93K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.27
• Revenue Growth: -9.16%
• EPS Growth: -42.30%
• Country: JP
• Employees: 185
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Apparel - Manufacturers
• EPS (TTM): 553.95
• Shares Outstanding: 2,882,848
• 10 Day Avg. Volume: 12,420
• 30 Day Avg. Volume: 7,933
• PEG Ratio: -0.78
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 92.83
• 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

• 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.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	15.76B	16.86B	17.74B	16.98B	17.88B	18.47B
Gross Profit	5.00B	5.63B	5.95B	5.47B	5.61B	5.39B
EBITDA	1.96B	2.77B	3.27B	4.10B	2.44B	2.41B
Net Income	1.60B	2.02B	2.46B	2.84B	1.54B	1.60B
Balance Sheet
Total Assets	41.39B	41.61B	42.29B	40.07B	38.99B	38.20B
Cash, Cash Equivalents and Short-Term Investments	13.30B	11.01B	8.70B	9.12B	6.12B	3.52B
Total Debt	0.00	0.00	0.00	0.00	1.00B	2.50B
Total Liabilities	3.76B	3.29B	5.19B	5.03B	5.90B	6.24B
Stockholders Equity	37.63B	38.33B	37.10B	35.04B	33.09B	31.96B
Cash Flow
Free Cash Flow	0.00	3.80B	275.68M	3.26B	5.10B	-237.07M
Operating Cash Flow	0.00	3.82B	313.68M	3.62B	5.91B	-176.40M
Investing Cash Flow	0.00	-65.12M	133.79M	1.25B	-934.00M	101.97M
Financing Cash Flow	0.00	-1.44B	-865.79M	-1.87B	-2.37B	1.63B

Jichodo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9310.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3597, the sentiment is Negative. The current price of 9310 is below the 20-day moving average (MA) of 9909.53, below the 50-day MA of 9612.08, and above the 200-day MA of 9159.45, indicating a neutral trend. The MACD of -85.14 indicates Positive momentum. The RSI at 37.02 is Neutral, neither overbought nor oversold. The STOCH value of 4.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3597.

Jichodo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8015	82 Outperform	$3.40T	9.35	14.04%	3.42%	1.18%	9.37%
3597	72 Outperform	¥23.60B	18.03		6.44%	-9.16%	-42.30%
8016	69 Neutral	€79.07B	9.03	10.87%	4.46%	13.65%	20.39%
Sector *	67 Neutral	¥252.23B	13.18	6.50%	2.78%	5.06%	-11.83%
3591	61 Neutral	$258.48B	38.29	3.45%	2.01%	-7.11%	―
7445	51 Neutral	¥10.58B	―	-180.01%	―	-21.09%	-165.71%