JMC Corp. (5704) AI Stock Analysis

• Market Cap: ¥2.36B
• Dividend Yield: N/A
• Average Volume (3M): 5.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: 6.42%
• EPS Growth: -39.44%
• Country: JP
• Employees: 142
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -226.95
• Shares Outstanding: 5,598,500
• 10 Day Avg. Volume: 6,720
• 30 Day Avg. Volume: 5,753
• PEG Ratio: <0.01
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 4.14
• 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: 50 Neutral
• Price Target: ¥409.00 ▲(8.20% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by mixed financial performance: improved cash flow and lower debt are positives, but the sharp 2025 earnings loss and reduced equity weigh heavily. Technical indicators are largely neutral with modest positive momentum, while valuation is weakened by negative earnings and no dividend data.

Positive Factors

Improving cash generation

Positive and improving operating and free cash flow in 2025 shows the business can generate internal funds for working capital, capex and deleveraging. Durable cash generation supports strategic flexibility, reduces refinancing risk and underpins longer-term recovery even if earnings remain volatile.

Lower leverage

Meaningful debt reduction over recent years improves financial resilience and lowers fixed financing costs. A more manageable capital structure increases headroom for investment or downturns, and reduces solvency risk, making the balance sheet structurally stronger over the next several quarters.

Revenue rebound

A clear revenue rebound indicates demand recovery or better commercial execution and supports operating leverage if sustained. Consistent top-line growth helps restore margins and provides a pathway to earnings recovery, improving medium-term visibility for cash generation and strategic plans.

Negative Factors

Sharp earnings collapse

A large swing to loss erodes earnings quality and raises questions about core margin sustainability. Persistent or recurring losses could deplete reserves, constrain investment and force cost cuts or asset sales, creating structural headwinds for profit recovery and long-term growth.

Declining equity cushion

Substantial equity decline shrinks the company's shock absorber against downturns and increases leverage ratios if losses persist. A thinner equity base weakens borrowing capacity, limits strategic flexibility, and raises the probability that adverse shocks will require external financing or dilutive measures.

Volatile historical cash flow

Historic swings between positive and negative cash flows signal inconsistent conversion of revenue to cash. This volatility undermines planning, makes capital allocation harder, and raises the risk that recent improvements may reverse, limiting confidence in sustained debt reduction or reinvestment plans.

JMC Corp. Business Overview & Revenue Model

Company Description

JMC Corporation engages in the manufacture and sale of 3D printers and sand mold casting prototypes, various components, and products in Japan. It also offers inspection/measurement services of CT for industrial use, as well as sells industrial CT scanners. The company was incorporated in 1992 and is headquartered in Yokohama, Japan.

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

Financials are mixed. Revenue rebounded in 2025 (+11.5%), debt has been reduced, and operating/free cash flow were positive and improved. However, profitability deteriorated sharply with net income swinging to a large loss in 2025 and equity falling substantially, which materially increases near-term risk.

Income Statement

Revenue has grown over the last two years (2025: +11.5% after a 2024 decline), but profitability has deteriorated sharply: net income swung from a modest profit in 2024 to a large loss in 2025. Earlier years (2022–2023) showed strong operating performance, indicating the business can be profitable, but the latest year’s earnings collapse materially weakens earnings quality and near-term visibility.

Balance Sheet

Leverage has improved with total debt falling meaningfully from 2023–2025, and the company still reports positive equity in 2025. However, equity also dropped substantially versus 2024, reducing the balance sheet cushion. Overall, the capital structure looks manageable, but the rapid decline in equity alongside recent losses raises risk if weak profitability persists.

Cash Flow

Cash generation is a relative bright spot: operating cash flow and free cash flow were positive in 2025 and improved versus prior years, and 2024 also showed positive free cash flow. That said, cash flow has been volatile historically (negative free cash flow in 2022–2023 and negative operating cash flow in 2020), so consistency remains a watch item despite the recent rebound.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.89B	3.22B	3.07B	3.64B	2.96B	2.42B
Gross Profit	861.36M	1.04B	1.02B	1.51B	1.21B	877.89M
EBITDA	276.01M	485.05M	461.70M	815.45M	657.97M	466.32M
Net Income	-71.18M	-1.26B	50.67M	363.69M	247.54M	114.20M
Balance Sheet
Total Assets	4.34B	2.86B	4.70B	4.98B	4.33B	3.81B
Cash, Cash Equivalents and Short-Term Investments	393.43M	425.00M	419.71M	303.24M	306.56M	306.26M
Total Debt	1.04B	749.19M	1.25B	1.44B	1.15B	1.10B
Total Liabilities	1.50B	1.22B	1.80B	2.12B	1.87B	1.61B
Stockholders Equity	2.84B	1.65B	2.90B	2.86B	2.46B	2.20B
Cash Flow
Free Cash Flow	0.00	506.52M	287.94M	-329.58M	-32.19M	315.78M
Operating Cash Flow	0.00	667.25M	529.05M	389.56M	600.41M	456.37M
Investing Cash Flow	0.00	-168.40M	-212.10M	-717.95M	-629.12M	-111.69M
Financing Cash Flow	0.00	-493.57M	-200.49M	325.08M	29.01M	-260.49M

JMC Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 378.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 378 is below the 20-day moving average (MA) of 416.35, below the 50-day MA of 398.08, and below the 200-day MA of 426.55, indicating a bullish trend. The MACD of 4.88 indicates Positive momentum. The RSI at 63.01 is Neutral, neither overbought nor oversold. The STOCH value of 70.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5704.

JMC Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7805	77 Outperform	¥3.56B	7.45	―	1.93%	-1.00%	105.56%
3958	70 Outperform	¥3.35B	13.65	―	3.30%	-3.41%	-24.95%
7914	68 Neutral	¥44.79B	13.14	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.66B	10.58	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.78B	19.83	―	2.72%	-1.30%	―
5704	50 Neutral	¥2.36B	-1.85	―	―	6.42%	-39.44%