JMC Corp. (5704) AI Stock Analysis

• Market Cap: ¥2.35B
• Dividend Yield: N/A
• Average Volume (3M): 5.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 6.42%
• EPS Growth: -39.44%
• Country: JP
• Employees: 142
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 12.21
• Shares Outstanding: 5,598,500
• 10 Day Avg. Volume: 6,720
• 30 Day Avg. Volume: 5,753
• PEG Ratio: -0.56
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 8.55
• 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: 56 Neutral
• Price Target: ¥410.00 ▲(0.99% Upside)

JMC Corp.'s strong financial performance is overshadowed by bearish technical indicators and a challenging valuation. The company's robust balance sheet and improved cash flow are positive, but the negative P/E ratio and lack of dividend yield present significant concerns. The absence of earnings call data and corporate events leaves the financial and technical analysis as the primary factors influencing the score.

Positive Factors

Balance Sheet Health

A strong balance sheet with a high equity ratio indicates financial stability and effective debt management, providing resilience against economic fluctuations.

Cash Generation Ability

Improved cash flow generation enhances the company's ability to invest in growth opportunities and manage financial obligations, supporting long-term sustainability.

Profitability Margins

Increasing gross profit margins reflect efficient cost management and pricing power, contributing to improved profitability and competitive positioning.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential challenges in market demand or competitive pressures, which could impact long-term growth prospects.

Return on Equity Decline

A declining return on equity suggests inefficiencies in using shareholder funds to generate profits, potentially affecting investor confidence and future capital raising.

Cash Flow Volatility

Volatility in cash flow management can hinder the company's ability to consistently fund operations and growth initiatives, posing a risk to financial stability.

JMC Corp. Business Overview & Revenue Model

Company Description

JMC Corp. (5704) is a diversified company specializing in technology solutions, manufacturing, and logistics services. With a strong presence in the sectors of electronics, automotive components, and supply chain management, JMC Corp. delivers innovative products and services that cater to a wide range of industries. Its core offerings include advanced electronic devices, precision-engineered components, and comprehensive logistics solutions designed to enhance operational efficiency and reduce costs for its clients.

How the Company Makes Money

JMC Corp. generates revenue through multiple streams, primarily focusing on the sale of its core products and services. The main revenue sources include the manufacturing and sale of electronic devices and automotive components, which are sold to various businesses across different sectors. Additionally, the company earns revenue from its logistics services, which involve managing supply chains and providing warehousing solutions for clients. Significant partnerships with major industry players enhance its market reach and provide opportunities for joint ventures, contributing to its earnings. The company's investment in research and development also allows it to innovate and introduce new products, further driving sales and market share growth.

JMC Corp. Financial Statement Overview

Summary

JMC Corp. demonstrates strong financial health with a robust balance sheet and improved profitability margins. The company has a solid equity base and effective debt management. However, challenges exist in sustaining revenue growth and improving return on equity.

Income Statement

JMC Corp. has demonstrated strong profitability with a consistent increase in gross profit margin, reaching 33.3% in 2024 from 31.4% in 2023. The net profit margin has also improved to 1.6%, despite a decline in total revenue from 2023 to 2024. The EBIT margin declined significantly but remains positive. Revenue growth has fluctuated, with a recent decline of 15.6% from 2023 to 2024, indicating a potential challenge in sustaining top-line growth.

Balance Sheet

The company's balance sheet is robust with a strong equity base, evidenced by an equity ratio of 61.7% in 2024. The debt-to-equity ratio improved to 0.43, suggesting effective debt management and reduced financial leverage. Return on equity has decreased to 1.7%, reflecting a need to enhance profitability in relation to equity.

Cash Flow

JMC Corp. has shown significant improvement in its cash flow position. Operating cash flow increased substantially, resulting in a positive free cash flow in 2024 after a negative position in 2023. The free cash flow to net income ratio indicates efficient cash generation relative to earnings. However, the free cash flow growth rate from 2023 to 2024 was negative, indicating potential volatility in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.89B	3.07B	3.64B	2.96B	2.42B	2.46B
Gross Profit	861.36M	1.02B	1.51B	1.21B	877.89M	568.95M
EBITDA	276.01M	461.70M	815.45M	657.97M	466.32M	84.23M
Net Income	-71.18M	50.67M	363.69M	247.54M	114.20M	-173.20M
Balance Sheet
Total Assets	4.34B	4.70B	4.98B	4.33B	3.81B	3.78B
Cash, Cash Equivalents and Short-Term Investments	393.43M	419.71M	303.24M	306.56M	306.26M	222.07M
Total Debt	1.04B	1.25B	1.44B	1.15B	1.10B	1.33B
Total Liabilities	1.50B	1.80B	2.12B	1.87B	1.61B	1.70B
Stockholders Equity	2.84B	2.90B	2.86B	2.46B	2.20B	2.09B
Cash Flow
Free Cash Flow	0.00	287.94M	-329.58M	-32.19M	315.78M	-280.55M
Operating Cash Flow	0.00	529.05M	389.56M	600.41M	456.37M	-28.80M
Investing Cash Flow	0.00	-212.10M	-717.95M	-629.12M	-111.69M	-249.34M
Financing Cash Flow	0.00	-200.49M	325.08M	29.01M	-260.49M	201.68M

JMC Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 406.00
• 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:5704, the sentiment is Negative. The current price of 406 is below the 20-day moving average (MA) of 406.15, below the 50-day MA of 430.44, and below the 200-day MA of 444.26, indicating a bearish trend. The MACD of -8.03 indicates Negative momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5704.

JMC Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥16.19B	8.88	―	3.76%	7.07%	79.18%
7914	69 Neutral	¥49.24B	10.64	―	3.85%	-0.04%	93.95%
7919	68 Neutral	¥3.28B	7.11	―	3.97%	0.62%	-24.08%
7805	64 Neutral	¥3.30B	7.41	―	1.95%	-1.00%	105.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.99%	-1.30%	―
5704	56 Neutral	¥2.35B	-33.07	―	―	6.42%	-39.44%