J Escom Holdings, Inc. (3779) AI Stock Analysis

• Market Cap: ¥2.01B
• Dividend Yield: N/A
• Average Volume (3M): 212.28K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.66
• Revenue Growth: 9.92%
• EPS Growth: N/A
• Country: JP
• Employees: 72
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 2.17
• Shares Outstanding: 11,567,990
• 10 Day Avg. Volume: 268,520
• 30 Day Avg. Volume: 212,280
• PEG Ratio: -0.02
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 206.14
• 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: 62 Neutral
• Price Target: ¥202.00 ▲(20.24% Upside)

J Escom Holdings, Inc. receives an overall score of 62, driven primarily by its mixed financial performance and bearish technical indicators. While the stock appears undervalued based on its P/E ratio, the lack of strong momentum and weak cash flow generation are significant concerns. The stable balance sheet and low leverage provide some financial stability, but the company must improve operational efficiency to enhance its financial health.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management, which can support long-term profitability and competitive pricing strategies.

Stable Balance Sheet

A stable balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities.

Improved Free Cash Flow

Improved free cash flow indicates better cash management, which can fund operations and strategic investments, supporting long-term growth.

Negative Factors

Weak Cash Flow Generation

Weak cash flow generation can limit the company's ability to reinvest in the business and meet financial obligations, impacting long-term growth potential.

Inconsistent Revenue Growth

Inconsistent revenue growth highlights volatility in sales performance, which can undermine investor confidence and affect long-term strategic planning.

Profitability Challenges

Challenges in achieving profitability can hinder the company's ability to sustain operations and invest in future growth, affecting its competitive position.

J Escom Holdings, Inc. Business Overview & Revenue Model

Company Description

J Escom Holdings,Inc., through its subsidiaries, engages in the sale of hairdressing and beauty consumables to hairdressers and esthetic salons in Japan and South Korea. The company operates in four segments: Beauty and Beauty Business; Consulting Business; Mail Order Business; and Digital Marketing Business. It also provides consulting services for companies; and produces TV shopping programs, as well as offers digital gifts and reward advertisements. The company was formerly known as ESCOM Co., Ltd. and changed its name to J Escom Holdings,Inc. in 2005. J Escom Holdings,Inc. was founded in 1968 and is headquartered in Tokyo, Japan.

How the Company Makes Money

J Escom Holdings, Inc. generates revenue through multiple streams, primarily from its subsidiaries in technology and real estate. The technology segment earns money by providing software solutions and services to businesses, charging clients through licensing fees, subscription models, and project-based contracts. In the real estate sector, the company derives income from rental properties and property management services, generating consistent cash flow. Additionally, strategic investments in various industries contribute to capital gains and dividends, enhancing overall profitability. The company also seeks partnerships with other firms to expand its market reach and leverage synergies, which further bolsters its revenue potential.

J Escom Holdings, Inc. Financial Statement Overview

Summary

J Escom Holdings, Inc. shows a mixed financial performance. The income statement reveals a strong gross profit margin but struggles with profitability and inconsistent revenue growth. The balance sheet is stable with low leverage, but cash flow generation is weak, indicating challenges in converting profits to cash.

Income Statement

J Escom Holdings, Inc. shows a mixed performance in its income statement. The gross profit margin is robust at 65.98% for the latest year, indicating effective cost management. However, the company struggles with profitability as evidenced by a negative EBIT margin of -8.23% and a net profit margin of 28.09%, which is positive but reflects a significant improvement from previous losses. Revenue growth is inconsistent, with a decline of 16.95% from the previous year, highlighting volatility in sales performance.

Balance Sheet

The balance sheet of J Escom Holdings, Inc. reflects a strong equity position with an equity ratio of 19.31%, suggesting a stable financial structure. The debt-to-equity ratio is low at 0.84, indicating manageable leverage. Return on equity is high at 60.10%, driven by recent profitability, but the low equity base could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges in cash generation. The operating cash flow to net income ratio is low at 0.04, indicating difficulties in converting profits to cash. Free cash flow has improved to a positive 9.15 million, but the free cash flow to net income ratio remains low at 0.02. The company must focus on enhancing cash flow from operations to support sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.39B	1.32B	1.59B	1.62B	937.28M	1.05B
Gross Profit	893.67M	870.45M	977.45M	752.34M	228.69M	241.88M
EBITDA	-4.25M	555.04M	-252.80M	93.67M	16.62M	41.03M
Net Income	446.26M	370.45M	-295.35M	41.29M	4.17M	-17.33M
Balance Sheet
Total Assets	2.19B	3.19B	2.62B	2.82B	512.07M	542.15M
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.67B	963.67M	1.32B	395.73M	414.74M
Total Debt	524.30M	519.97M	659.15M	311.74M	0.00	0.00
Total Liabilities	1.46B	2.46B	2.27B	2.19B	139.83M	174.08M
Stockholders Equity	609.36M	616.53M	237.13M	525.11M	372.24M	368.07M
Cash Flow
Free Cash Flow	0.00	9.15M	-419.70M	-144.82M	-19.01M	30.64M
Operating Cash Flow	0.00	13.38M	-360.64M	-127.34M	-18.39M	30.99M
Investing Cash Flow	0.00	355.98M	-187.00M	668.63M	-626.00K	-248.00K
Financing Cash Flow	0.00	99.39M	131.79M	198.58M	0.00	0.00

J Escom Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 168.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3779, the sentiment is Neutral. The current price of 168 is above the 20-day moving average (MA) of 165.55, below the 50-day MA of 179.46, and below the 200-day MA of 182.69, indicating a neutral trend. The MACD of -2.54 indicates Negative momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 79.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3779.

J Escom Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3416	82 Outperform	¥2.14B	11.44	―	4.41%	-10.69%	-60.56%
3375	76 Outperform	¥2.79B	7.33	―	3.71%	4.14%	31.98%
3192	73 Outperform	¥2.05B	4.88	―	―	0.06%	―
2666	67 Neutral	¥2.40B	7.92	―	1.92%	11.96%	30.75%
3779	62 Neutral	¥2.01B	4.47	―	―	9.92%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3174	44 Neutral	¥1.93B	-2.05	―	1.06%	-17.99%	-75.96%