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

• Market Cap: ¥26.24B
• Dividend Yield: 5.15%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.25
• Revenue Growth: -6.67%
• EPS Growth: -7.35%
• Country: JP
• Employees: 185
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• 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: 76 Outperform
• Price Target: ¥10,972.00 ▲(13.00% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by low financial risk (debt-free balance sheet) and solid recent cash generation, which outweigh the recent deterioration in revenue and margins. Technicals are supportive with the stock trading above key moving averages, and valuation is helped by a strong dividend yield, though the P/E limits upside if earnings momentum does not improve.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without the burden of interest payments.

Strong Cash Generation

Consistent cash generation supports operational stability and provides resources for reinvestment, dividend payments, or strategic acquisitions, enhancing long-term business resilience.

Conservative Capitalization

Conservative capitalization with a strong equity base reduces financial risk and enhances the company's ability to weather economic downturns, supporting sustainable growth.

Negative Factors

Declining Revenue

A decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact future profitability and growth prospects if not addressed.

Margin Compression

Margin compression suggests rising costs or pricing pressures, which could erode profitability if the company cannot manage expenses or increase efficiency.

Volatile Earnings

Earnings volatility can signal underlying business instability, making it difficult to predict future performance and potentially affecting investor confidence and valuation.

Jichodo Co., Ltd. Business Overview & Revenue Model

Company Description

JICHODO Co.,Ltd. manufactures and sells uniforms in Japan and internationally. It provides men's casuals, medical white coats, and safety shoes. The company sells its products through mass retailers, delivery and general wholesalers, home centers, and uniform shops. JICHODO Co.,Ltd. was founded in 1924 and is headquartered in Fukuyama, Japan.

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

Strong financial position and cash quality support the score: a debt-free balance sheet (high balance sheet score) and solid recent cash conversion (cash flow score). The main offset is weakening operating momentum—FY2025 revenue declined and margins compressed versus FY2024 (income statement score), indicating profitability is trending lower despite remaining positive.

Income Statement

Profitability is solid but trending weaker: gross margin has generally held around ~29%–34% and operating profitability remains healthy, but FY2025 revenue declined (~-3.3%) and margins compressed versus FY2024 (net margin ~7.6% vs ~12.0% prior year). Over the past several years, revenue growth has been mostly negative, and earnings have been volatile (notably strong FY2022–FY2023, then downshifting in FY2024–FY2025). Strength is continued profitability; weakness is the recent downturn in both sales and margins.

Balance Sheet

Balance sheet strength is a key positive: the company reports essentially no debt in recent years (debt-to-equity at 0.0 in FY2022–FY2025), with a large equity base relative to total assets, indicating conservative capitalization and low financial risk. Return on equity is positive but has stepped down materially in FY2025 (~3.0%) from stronger levels in FY2022–FY2023 (~6.6%–8.1%), suggesting weakening profitability rather than leverage-driven risk.

Cash Flow

Cash generation is generally strong and high-quality: operating cash flow and free cash flow are robust in FY2024–FY2025, and free cash flow has tracked close to net income (roughly ~0.99x in both years). Cash flow also covered net income well in the last two years (operating cash flow to net income ~2.03x in FY2024 and ~1.58x in FY2025). The main concern is volatility—FY2023 operating cash flow was unusually low relative to profits, and FY2020 showed negative operating and free cash flow—so consistency across cycles remains a watch item.

Breakdown	Jun 2025	Jun 2024	Jun 2022	Jun 2021	Jun 2021
Income Statement
Total Revenue	14.94B	16.86B	17.74B	16.98B	17.88B
Gross Profit	4.57B	5.63B	5.95B	5.47B	5.61B
EBITDA	1.77B	2.77B	3.27B	2.42B	2.36B
Net Income	1.13B	2.02B	2.46B	2.84B	1.54B
Balance Sheet
Total Assets	41.95B	41.61B	42.29B	40.07B	38.99B
Cash, Cash Equivalents and Short-Term Investments	13.39B	11.01B	8.70B	9.12B	6.12B
Total Debt	0.00	0.00	0.00	0.00	1.00B
Total Liabilities	3.83B	3.29B	5.19B	5.03B	5.90B
Stockholders Equity	38.12B	38.33B	37.10B	35.04B	33.09B
Cash Flow
Free Cash Flow	3.95B	3.80B	275.68M	3.26B	5.10B
Operating Cash Flow	3.98B	3.82B	313.68M	3.62B	5.91B
Investing Cash Flow	-156.81M	-65.12M	133.79M	1.25B	-934.00M
Financing Cash Flow	-1.44B	-1.44B	-865.79M	-1.87B	-2.37B

Jichodo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9710.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 9710 is below the 20-day moving average (MA) of 10121.00, below the 50-day MA of 9956.80, and above the 200-day MA of 9644.02, indicating a bullish trend. The MACD of 110.77 indicates Negative momentum. The RSI at 79.55 is Negative, neither overbought nor oversold. The STOCH value of 90.99 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
3569	78 Outperform	¥195.02B	13.54	10.24%	2.43%	6.08%	8.55%
3597	76 Outperform	¥26.24B	23.74	―	5.15%	-6.67%	-7.35%
3608	68 Neutral	¥55.73B	4.29	17.77%	6.12%	-6.22%	679.61%
3002	66 Neutral	¥154.86B	48.89	2.34%	3.38%	>-0.01%	-49.83%
2685	64 Neutral	¥135.56B	14.93	11.28%	3.59%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3591	59 Neutral	¥236.41B	19.95	5.31%	2.29%	-6.04%	146.54%