JIG-SAW INC. (3914) AI Stock Analysis

• Market Cap: ¥22.82B
• Dividend Yield: N/A
• Average Volume (3M): 19.04K
• Price to Earnings (P/E): 61.8
• Beta (1Y): 1.12
• Revenue Growth: 3.17%
• EPS Growth: -16.66%
• Country: JP
• Employees: 178
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 17.30
• Shares Outstanding: 6,751,000
• 10 Day Avg. Volume: 16,900
• 30 Day Avg. Volume: 19,040
• PEG Ratio: 12.85
• Price to Book (P/B): 7.12
• Price to Sales (P/S): 6.46
• P/FCF Ratio: 55.10
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,435.00 ▲(12.07% Upside)

JIG-SAW INC. demonstrates strong financial performance with robust revenue growth and solid balance sheet metrics, contributing significantly to the overall score. Technical analysis supports a positive outlook with the stock trading above key moving averages. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score.

JIG-SAW INC. Business Overview & Revenue Model

Company Description

JIG-SAW INC. provides IoT based auto sensing and auto control services in Japan. It offers IoT big data control services; secure data and bidirectional control services in mobile edge computing; direct control of cells and living organisms through software; and automation, decentralization, and sharing services for various industries based on optimal control and operation technology for business systems. The company also engages in the research and development of automated driving software, next-generation real-time operating systems, next-generation modules, etc. In addition, it offers end-to-end automatic data control services, which include big data, cloud, servers, networking, apps, platforms, security software, IoT devices, communication modules, devices, equipment, cells, living organisms, etc. The company was founded in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JIG-SAW INC. generates revenue through multiple streams, primarily from software sales, subscription services, and consulting fees. The company's core revenue sources include licensing its proprietary analytics software to enterprises, which provides recurring subscription income. Additionally, JIG-SAW INC. offers customized data analytics services, charging clients for bespoke solutions tailored to their specific needs. Strategic partnerships with industry leaders in sectors like healthcare and finance also contribute to revenue, as they enable JIG-SAW INC. to expand its market reach and enhance product offerings. Furthermore, the company may benefit from government contracts and grants aimed at advancing technology solutions in public sector projects.

JIG-SAW INC. Financial Statement Overview

Summary

JIG-SAW INC. exhibits strong financial health with consistent revenue and profit growth, maintaining high margins in a competitive software infrastructure industry. The balance sheet is solid with low leverage and high equity, while cash flow operations are efficient. Minor areas for improvement include optimizing cash reserves and managing operational costs to sustain margins.

Income Statement

JIG-SAW INC. has demonstrated strong revenue growth with a consistent upward trajectory from 2019 to 2024, highlighted by a revenue growth rate of 7.14% from 2023 to 2024. The company maintains healthy gross profit margins above 70% and net profit margins around 13.76% in 2024. EBIT and EBITDA margins are stable, indicating efficient operations. However, the slight decrease in EBIT margin from 19.29% in 2023 to 16.01% in 2024 suggests potential operational cost increases.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.14 in 2024, highlighting conservative leverage. The return on equity stands at 15.16%, reflecting effective use of equity capital. The equity ratio is strong at 64.93%, emphasizing financial stability. A notable increase in stockholders' equity reflects a solid capital foundation, though the high cash reserves could be optimized further for growth.

Cash Flow

Cash flow performance is sound, with free cash flow generation at 421 million JPY in 2024, albeit a decline from 506 million JPY in 2023. The operating cash flow to net income ratio is favorable at 1.29, indicating effective cash conversion. Although the free cash flow growth rate has declined, maintaining positive free cash flow demonstrates prudent financial management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.50B	3.47B	3.24B	3.05B	2.75B	2.19B
Gross Profit	2.45B	2.44B	2.25B	2.08B	1.89B	1.56B
EBITDA	590.12M	769.75M	702.95M	652.46M	548.45M	498.31M
Net Income	372.07M	478.73M	459.63M	408.12M	336.33M	326.73M
Balance Sheet
Total Assets	4.55B	4.86B	3.49B	3.12B	2.64B	2.18B
Cash, Cash Equivalents and Short-Term Investments	1.57B	1.99B	1.48B	1.36B	1.13B	890.29M
Total Debt	400.00M	450.00M	45.00M	105.00M	165.00M	233.02M
Total Liabilities	1.46B	1.70B	902.85M	849.62M	673.03M	592.86M
Stockholders Equity	3.09B	3.15B	2.59B	2.27B	1.97B	1.58B
Cash Flow
Free Cash Flow	0.00	407.31M	506.36M	492.16M	337.37M	-197.95M
Operating Cash Flow	0.00	618.82M	517.12M	506.91M	449.82M	-18.91M
Investing Cash Flow	0.00	-540.55M	-118.99M	3.71M	-134.66M	-134.44M
Financing Cash Flow	0.00	410.21M	-259.94M	-246.11M	-65.25M	-68.50M

JIG-SAW INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3065.00
• 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:3914, the sentiment is Positive. The current price of 3065 is above the 20-day moving average (MA) of 2838.65, above the 50-day MA of 2604.54, and above the 200-day MA of 2830.01, indicating a bullish trend. The MACD of 258.72 indicates Negative momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3914.

JIG-SAW INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	76 Outperform	¥18.96B	34.83	―	0.16%	28.56%	-13.56%
3914	72 Outperform	¥22.82B	61.81	―	―	3.17%	-16.66%
3992	67 Neutral	¥20.92B	25.32	―	2.28%	2.06%	-16.53%
3850	65 Neutral	¥19.77B	29.08	―	0.94%	15.28%	60.07%
5132	64 Neutral	¥31.22B	100.36	―	―	30.06%	125.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%