JIG-SAW INC. (3914) AI Stock Analysis

• Market Cap: ¥17.50B
• Dividend Yield: N/A
• Average Volume (3M): 10.24K
• Price to Earnings (P/E): 43.9
• Beta (1Y): 0.93
• Revenue Growth: 5.32%
• EPS Growth: -19.27%
• Country: JP
• Employees: 178
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): 15.35
• Shares Outstanding: 6,751,000
• 10 Day Avg. Volume: 10,370
• 30 Day Avg. Volume: 10,243
• PEG Ratio: 3.61
• Price to Book (P/B): 13.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 62.76
• 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: 65 Neutral
• Price Target: ¥2,921.00 ▲(10.43%Upside)

JIG-SAW INC.'s score is primarily driven by its strong financial performance, with consistent revenue growth and robust profit margins. However, this is tempered by bearish technical indicators and a high P/E ratio suggesting overvaluation. The absence of dividend yield and lack of earnings call data limit additional positive influences.

JIG-SAW INC. Business Overview & Revenue Model

Company Description

JIG-SAW INC. (3914) is a Japanese technology company specializing in IoT (Internet of Things) and cloud-based solutions. The company provides a comprehensive range of services including system integration, data analysis, and management platforms designed to enable smart device connectivity and optimize business operations. Their core products and services are aimed at enhancing industrial IoT capabilities, supporting digital transformation, and improving data-driven decision-making processes for various sectors.

How the Company Makes Money

JIG-SAW INC. generates revenue through multiple streams primarily by offering IoT solutions and cloud services to businesses. The company earns money by providing system integration services, which involve the deployment and management of IoT devices and platforms for clients. Additionally, they generate revenue from subscription-based models for their cloud services, enabling clients to access and utilize data analytics and management tools. JIG-SAW INC. also partners with other technology firms and industries to enhance their service offerings, which can lead to additional revenue through collaborative projects and shared ventures.

JIG-SAW INC. Financial Statement Overview

Summary

JIG-SAW INC. shows robust financial health with strong revenue growth and high profit margins. The balance sheet is solid, featuring low leverage and strong equity ratios, while cash flow operations are efficient despite a slight decline in free cash flow. Areas for improvement include optimizing cash reserves and controlling operational costs to maintain EBIT 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.47B	3.24B	3.05B	2.75B	2.19B
Gross Profit	2.44B	2.25B	2.08B	1.89B	1.56B
EBITDA	769.75M	702.95M	652.46M	548.45M	498.31M
Net Income	478.73M	459.63M	408.12M	336.33M	326.73M
Balance Sheet
Total Assets	4.86B	3.49B	3.12B	2.64B	2.18B
Cash, Cash Equivalents and Short-Term Investments	1.99B	1.48B	1.36B	1.13B	890.29M
Total Debt	450.00M	45.00M	105.00M	165.00M	233.02M
Total Liabilities	1.70B	902.85M	849.62M	673.03M	592.86M
Stockholders Equity	3.15B	2.59B	2.27B	1.97B	1.58B
Cash Flow
Free Cash Flow	407.31M	506.36M	492.16M	337.37M	-197.95M
Operating Cash Flow	618.82M	517.12M	506.91M	449.82M	-18.91M
Investing Cash Flow	-540.55M	-118.99M	3.71M	-134.66M	-134.44M
Financing Cash Flow	410.21M	-259.94M	-246.11M	-65.25M	-68.50M

JIG-SAW INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2645.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3914, the sentiment is Negative. The current price of 2645 is below the 20-day moving average (MA) of 2727.15, below the 50-day MA of 2778.08, and below the 200-day MA of 3403.38, indicating a bearish trend. The MACD of -32.97 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 10.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	80 Outperform	¥16.77B	30.54		0.18%	24.15%	-7.80%
3914	65 Neutral	¥17.50B	43.88		―	5.32%	-19.27%
3850	65 Neutral	¥17.47B	51.35		0.97%	32.25%	87.20%
5132	64 Neutral	¥24.77B	80.82		―	37.63%	184.40%
3992	61 Neutral	¥18.78B	22.35		1.93%	3.71%	-14.56%
Sector *	56 Neutral	$7.08B	5.28	-5.20%	5.56%	8.18%	-38.45%