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

• Market Cap: ¥2.99B
• Dividend Yield: 1.03%
• Average Volume (3M): 3.24K
• Price to Earnings (P/E): 64.7
• Beta (1Y): 0.07
• Revenue Growth: -7.83%
• EPS Growth: 7.12%
• Country: JP
• Employees: 186
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): 19.65
• Shares Outstanding: 5,255,000
• 10 Day Avg. Volume: 2,990
• 30 Day Avg. Volume: 3,243
• PEG Ratio: -1.75
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 51 Neutral
• Price Target: ¥598.00 ▲(2.93%Upside)

Jorudan Co., Ltd. exhibits a mixed financial outlook with strong balance sheet metrics but struggles with revenue decline and cash flow issues. The technical analysis suggests a neutral stance with no clear trend, while a high P/E ratio indicates potential overvaluation concerns. These factors result in a mid-range score, highlighting areas for improvement in operational efficiency and cash generation.

Jorudan Co., Ltd. Business Overview & Revenue Model

Company Description

Jorudan Co., Ltd. is a Japan-based company primarily engaged in the development and provision of software solutions, with a focus on transportation and travel-related services. The company offers a range of products, including navigation systems, travel planning applications, and enterprise software solutions. It caters to both individual consumers and businesses, leveraging digital platforms to enhance accessibility and user experience in the transportation and travel sectors.

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 strong gross profit margins and a robust balance sheet with low leverage, indicating financial stability. However, declining revenues, operational profitability challenges, and weak cash flow generation highlight significant areas of concern. Improving cash flows and operational efficiency should be key priorities.

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

Jorudan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 581.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3710, the sentiment is Neutral. The current price of 581 is above the 20-day moving average (MA) of 577.55, below the 50-day MA of 581.58, and below the 200-day MA of 597.51, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3710.

Jorudan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3744	82 Outperform	¥3.94B	11.18		1.39%	5.94%	4971.99%
4447	74 Outperform	¥3.82B	18.39		1.67%	-0.64%	-36.11%
3712	72 Outperform	¥17.02B	14.14		2.17%	2.71%	9.95%
Sector *	68 Neutral	¥234.20B	14.88	7.50%	2.60%	9.27%	5.76%
3909	56 Neutral	¥3.42B	13.83		―	13.97%	―
3710	51 Neutral	¥2.99B	64.73		1.03%	-7.83%	7.12%