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Jichodo Co., Ltd. (JP:3597)
:3597
Japanese Market

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

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JP

Jichodo Co., Ltd.

(3597)

Rating:72Outperform
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. (3597) vs. iShares MSCI Japan ETF (EWJ)

Jichodo Co., Ltd. Business Overview & Revenue Model

Company DescriptionJichodo 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 MoneyJichodo 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
75
Positive
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
85
Very Positive
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
60
Neutral
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue15.76B16.86B17.74B16.98B17.88B18.47B
Gross Profit5.00B5.63B5.95B5.47B5.61B5.39B
EBITDA1.96B2.77B3.27B4.10B2.44B2.41B
Net Income1.60B2.02B2.46B2.84B1.54B1.60B
Balance Sheet
Total Assets41.39B41.61B42.29B40.07B38.99B38.20B
Cash, Cash Equivalents and Short-Term Investments13.30B11.01B8.70B9.12B6.12B3.52B
Total Debt0.000.000.000.001.00B2.50B
Total Liabilities3.76B3.29B5.19B5.03B5.90B6.24B
Stockholders Equity37.63B38.33B37.10B35.04B33.09B31.96B
Cash Flow
Free Cash Flow0.003.80B275.68M3.26B5.10B-237.07M
Operating Cash Flow0.003.82B313.68M3.62B5.91B-176.40M
Investing Cash Flow0.00-65.12M133.79M1.25B-934.00M101.97M
Financing Cash Flow0.00-1.44B-865.79M-1.87B-2.37B1.63B

Jichodo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price9310.00
Price Trends
50DMA
9612.08
Negative
100DMA
9341.55
Negative
200DMA
9159.45
Positive
Market Momentum
MACD
-85.14
Positive
RSI
37.02
Neutral
STOCH
4.69
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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$3.40T9.3514.04%3.42%1.18%9.37%
72
Outperform
¥23.60B18.03
6.44%-9.16%-42.30%
69
Neutral
€79.07B9.0310.87%4.46%13.65%20.39%
67
Neutral
¥252.23B13.186.50%2.78%5.06%-11.83%
61
Neutral
$258.48B38.293.45%2.01%-7.11%
51
Neutral
¥10.58B-180.01%-21.09%-165.71%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3597
Jichodo Co., Ltd.
9,310.00
-624.47
-6.29%
JP:8016
Onward Holdings Co., Ltd.
583.00
34.55
6.30%
JP:7445
RIGHT ON Co., Ltd.
298.00
-78.00
-20.74%
JP:3591
WACOAL HOLDINGS
4,965.00
564.12
12.82%
JP:8015
Toyota Tsusho
3,211.00
90.02
2.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025