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

• Market Cap: ¥3.09B
• Dividend Yield: 1.05%
• Average Volume (3M): 5.03K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.06
• Revenue Growth: -3.21%
• EPS Growth: N/A
• Country: JP
• Employees: 186
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.71
• Shares Outstanding: 5,255,000
• 10 Day Avg. Volume: 5,010
• 30 Day Avg. Volume: 5,030
• PEG Ratio: -0.04
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 9.58
• 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: ¥648.00 ▲(10.58% Upside)
• Action: Upgraded Date: 01/14/26
• Date: Action: Upgraded 01/14/26

The score is driven primarily by financial strength (very low leverage and a 2025 rebound in profitability and free cash flow), offset by historically inconsistent revenue/cash-flow trends. Technicals are supportive but look somewhat overheated short-term, while valuation appears reasonable with a modest dividend yield.

Positive Factors

Low Leverage / Strong Balance Sheet

Near-zero leverage materially reduces financial risk and interest costs, giving the company durable stability. This balance-sheet strength supports multi-year investment in product development, tendering for public contracts, and resilience through industry cycles without requiring dilutive financing.

Improved Profitability and Cash Generation (2025)

The 2025 rebound to positive operating profit and solid free cash flow marks a structural improvement in earnings quality. Sustained cash generation enhances capacity to fund R&D, recurring service delivery, and customer support, improving long-term competitiveness and funding optionality.

Core Transportation Software and Strategic Partnerships

A focused product set for route optimization and transport management targets structural demand from logistics and public transit digitization. Partnerships with agencies and tech firms create sticky B2B relationships, recurring licensing and consulting revenue, and barriers to entry over multiple years.

Negative Factors

Inconsistent Revenue and Cash-Flow History

Flat revenue and volatile free cash flow reduce predictability of margins and capital allocation. For a software vendor, inconsistent top-line growth limits operating leverage, makes long-term hiring and R&D planning harder, and raises execution risk for multi-year contracts.

Negative Recent Revenue Growth

A multi-year top-line decline constrains the company’s ability to scale fixed-cost investments and dilute product development expense. Persistent negative growth increases reliance on price or margin improvements to drive profits, which may be harder in competitive transport software markets.

Modest and Occasionally Negative Returns on Capital

Low or negative returns on equity in loss years signal limited capital efficiency and a weaker economic moat. Over the medium term this pressures reinvestment returns and shareholder returns, and implies management must materially improve margins or scale to justify continued investment.

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 generates revenue primarily through the sale of its software products and services to businesses and government entities within the transportation and travel sectors. The company also earns money from subscription services related to its navigation and route optimization applications. Key revenue streams include licensing fees for its software, maintenance and support services, and consulting services that help clients implement and optimize their transportation systems. Additionally, partnerships with public transportation agencies and collaboration with technology firms enhance its service offerings and expand its market reach, contributing significantly to its overall earnings.

Jorudan Co., Ltd. Financial Statement Overview

Summary

Strong balance-sheet position with effectively minimal debt supports financial stability. Profitability and cash generation rebounded in 2025 (return to positive operating profit/net income and solid positive free cash flow), but revenue has been relatively flat over several years and both earnings and free cash flow have been volatile.

Income Statement

Profitability improved meaningfully in the latest annual period (2025), with the company returning to positive operating profit and net income after losses in 2023–2024. Gross margin also strengthened versus 2024, supporting the rebound. Offsetting this, revenue has been relatively flat over the last several years with multiple down years and only modest growth in 2025, indicating limited top-line momentum and somewhat inconsistent earnings performance.

Balance Sheet

The balance sheet is a clear strength: debt is effectively minimal and debt-to-equity is near zero across the period, limiting financial risk and interest burden. Equity remains sizable and stable relative to assets. The main weakness is that returns on shareholder capital have been modest and occasionally negative (during loss years), implying the company has not consistently generated strong profits on its capital base.

Cash Flow

Cash generation improved sharply in 2025, with operating cash flow rising substantially and free cash flow turning solidly positive, roughly matching net income, which supports earnings quality. However, cash flow has been volatile: free cash flow was negative in multiple prior years (notably 2021, 2023, and 2024), reflecting uneven conversion of profits into cash and periodic cash outflows that reduce consistency.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.83B	2.93B	3.00B	2.65B	2.61B
Gross Profit	1.26B	1.18B	1.32B	1.26B	1.29B
EBITDA	437.48M	75.81M	6.51M	268.00M	235.38M
Net Income	261.74M	-118.54M	-195.86M	65.44M	48.53M
Balance Sheet
Total Assets	5.50B	5.30B	5.70B	5.82B	5.62B
Cash, Cash Equivalents and Short-Term Investments	3.23B	2.98B	3.28B	3.65B	3.65B
Total Debt	0.00	10.01M	71.79M	30.00M	40.00M
Total Liabilities	899.58M	873.67M	1.04B	852.62M	680.85M
Stockholders Equity	4.58B	4.40B	4.63B	4.93B	4.89B
Cash Flow
Free Cash Flow	316.81M	-135.09M	-273.75M	123.80M	-337.39M
Operating Cash Flow	322.27M	29.36M	158.49M	256.08M	132.64M
Investing Cash Flow	-82.94M	-164.88M	-430.40M	-344.68M	-250.08M
Financing Cash Flow	-40.52M	-107.04M	-110.43M	-70.66M	70.07M

Jorudan Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3710, the sentiment is Positive. The current price of 586 is below the 20-day moving average (MA) of 593.60, above the 50-day MA of 585.96, and above the 200-day MA of 582.48, indicating a bullish trend. The MACD of 3.73 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 60.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform	¥18.09B	14.08	―	1.81%	6.39%	6.38%
9691	73 Outperform	¥16.04B	7.62	―	0.99%	33.30%	163.81%
3710	72 Outperform	¥3.09B	14.23	―	1.05%	-3.21%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4375	57 Neutral	¥47.37B	107.87	―	―	29.56%	86.66%
4425	44 Neutral	¥25.14B	-49.19	―	―	36.08%	-7.71%