Jorudan Co., Ltd. (3710) AI Stock Analysis

• Market Cap: ¥3.01B
• Dividend Yield: 1.02%
• Average Volume (3M): 3.69K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.08
• Revenue Growth: -6.71%
• EPS Growth: N/A
• Country: JP
• Employees: 186
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 7.89
• Shares Outstanding: 5,255,000
• 10 Day Avg. Volume: 1,920
• 30 Day Avg. Volume: 3,693
• PEG Ratio: 0.67
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -23.18
• 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: ¥590.00
• Price Target Upside: 0.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ¥590.00 ▲(0.68% Upside)

Jorudan Co., Ltd. faces challenges with operational profitability and cash flow generation, which are significant concerns. Technical indicators also point to bearish momentum, further impacting the stock's outlook. While the balance sheet is strong, the high P/E ratio suggests the stock may be overvalued, contributing to a cautious overall score.

Jorudan Co., Ltd. Business Overview & Revenue Model

Company Description

Jorudan Co.,Ltd. engages in the development of program products in Japan. The company offers Japan Transit Planner, a service that helps to search routes, fares, and schedules of trains and air planes. It also involved in the planning, designing, development, and maintenance of systems, software, and Fintech solutions; and production of digital contents. In addition, the company engages in the provision of mobile and internet contents; travel; media contents; advertisement; publishing; sales and maintenance of hardware; development and maintenance of software; and electronic commerce business. Jorudan Co.,Ltd. was incorporated in 1979 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Jorudan Co., Ltd. generates revenue through several streams, primarily from its software products and services. The company earns money by selling licenses for its transportation and travel-related applications, such as navigation systems that assist users in planning and optimizing their travel routes. It also provides enterprise software solutions to businesses, which include custom development services and ongoing maintenance contracts. Additionally, Jorudan may partner with other companies to integrate its technology into broader platforms, potentially sharing in the revenue from these collaborations. Subscription fees, licensing, and service contracts are key components of its revenue model, ensuring a steady income from both recurring and one-time payments.

Jorudan Co., Ltd. Financial Statement Overview

Summary

Jorudan Co., Ltd. shows a mixed financial performance. The company benefits from strong gross profit margins and a robust balance sheet with no debt, indicating financial stability. However, declining revenues, operational profitability issues, and weak cash flow generation are significant concerns.

Income Statement

The income statement reveals mixed performance. The TTM gross profit margin stands at 41.42%, indicating strong profitability on revenue. However, the net profit margin improved to 2.54% in the TTM, up from a negative margin in the previous annual report. Revenue growth is negative over the last year, with a -2.55% decline. The EBIT and EBITDA margins are weak at -3.70% and 5.20% respectively, indicating operational challenges.

Balance Sheet

The balance sheet is robust, with a strong equity ratio of 83.54% in the TTM, indicating financial stability and low leverage. The company has no debt, suggesting low financial risk. Return on equity is modest at 1.64%, reflecting profitability challenges.

Cash Flow

Cash flow metrics are concerning. The free cash flow has not shown growth, and the operating cash flow to net income ratio is undefined due to zero operating cash flow. The company needs to improve cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.77B	2.93B	3.00B	2.65B	2.61B	3.49B
Gross Profit	1.19B	1.18B	1.32B	1.26B	1.29B	1.51B
EBITDA	171.99M	75.81M	6.51M	268.00M	235.38M	224.19M
Net Income	108.42M	-118.54M	-195.86M	65.44M	48.53M	52.40M
Balance Sheet
Total Assets	5.46B	5.30B	5.70B	5.82B	5.62B	5.50B
Cash, Cash Equivalents and Short-Term Investments	3.19B	2.98B	3.28B	3.65B	3.65B	3.63B
Total Debt	0.00	10.01M	71.79M	30.00M	40.00M	40.00M
Total Liabilities	860.53M	873.67M	1.04B	852.62M	680.85M	667.35M
Stockholders Equity	4.58B	4.40B	4.63B	4.93B	4.89B	4.81B
Cash Flow
Free Cash Flow	0.00	-135.09M	-273.75M	123.80M	-337.39M	17.20M
Operating Cash Flow	0.00	29.36M	158.49M	256.08M	132.64M	87.66M
Investing Cash Flow	0.00	-164.88M	-430.40M	-344.68M	-250.08M	-140.20M
Financing Cash Flow	0.00	-107.04M	-110.43M	-70.66M	70.07M	137.23M

Jorudan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 586.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3710, the sentiment is Negative. The current price of 586 is below the 20-day moving average (MA) of 591.87, below the 50-day MA of 589.28, and above the 200-day MA of 585.50, indicating a bearish trend. The MACD of -1.26 indicates Positive momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 16.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3710.

Jorudan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3712	72 Outperform	¥20.83B	17.35	―	1.77%	6.96%	16.13%
3744	67 Neutral	¥3.92B	8.76	―	1.39%	-7.06%	147.27%
4447	62 Neutral	¥3.28B	16.93	―	3.84%	42.88%	-5.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3710	53 Neutral	¥3.01B	27.53	―	1.02%	-6.71%	―
3909	51 Neutral	¥3.15B	10.45	―	―	-8.20%	―