JMC Corp. (5704) AI Stock Analysis

• Market Cap: ¥2.56B
• Dividend Yield: N/A
• Average Volume (3M): 4.76K
• Price to Earnings (P/E): 1774.6
• Beta (1Y): 0.28
• Revenue Growth: -21.05%
• EPS Growth: -99.62%
• Country: JP
• Employees: 142
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): 4.58
• Shares Outstanding: 5,598,500
• 10 Day Avg. Volume: 6,380
• 30 Day Avg. Volume: 4,760
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥476.00
• Price Target Upside: 2.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥473.00 ▲(2.16% Upside)

JMC Corp. has a strong financial foundation with effective debt management and improved cash flow, which significantly boosts its score. However, the technical analysis suggests moderate momentum without a strong bullish signal. The stock's valuation is a major concern due to an extremely high P/E ratio, indicating potential overvaluation.

JMC Corp. Business Overview & Revenue Model

Company Description

JMC Corp. (5704) is a Japanese company primarily engaged in the manufacturing and sale of precision casting products. The company specializes in providing high-quality casting solutions, utilizing advanced technologies to serve various industries, including automotive, aerospace, and industrial machinery. With a strong emphasis on innovation and quality, JMC Corp. continues to expand its product offerings and enhance its manufacturing processes to meet the evolving demands of its diverse customer base.

How the Company Makes Money

JMC Corp. generates revenue through the production and sale of precision casting products. The company's key revenue streams include sales to the automotive sector, where its components are used in engines and other critical systems, and the aerospace industry, which requires high-precision parts for aircraft. Additionally, JMC Corp. serves the industrial machinery sector, supplying parts that require durability and precision. The company collaborates with various partners and clients to develop custom solutions, ensuring a steady demand for its products. Significant factors contributing to JMC Corp.'s earnings include its advanced manufacturing capabilities, commitment to quality, and ability to adapt to market trends and customer needs.

JMC Corp. Financial Statement Overview

Summary

JMC Corp. demonstrates strong financial health with improved profitability margins, a robust balance sheet, and positive cash flow trends. The company maintains low financial leverage, although challenges persist in sustaining revenue growth and enhancing 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	3.64B	2.96B	2.42B	2.46B
Gross Profit	1.02B	1.51B	1.21B	877.89M	568.95M
EBITDA	461.70M	815.45M	657.97M	469.71M	88.00M
Net Income	50.67M	363.69M	247.54M	114.20M	-173.20M
Balance Sheet
Total Assets	4.70B	4.98B	4.33B	3.81B	3.78B
Cash, Cash Equivalents and Short-Term Investments	419.71M	303.24M	306.56M	306.26M	222.07M
Total Debt	1.25B	1.44B	1.15B	1.10B	1.33B
Total Liabilities	1.80B	2.12B	1.87B	1.61B	1.70B
Stockholders Equity	2.90B	2.86B	2.46B	2.20B	2.09B
Cash Flow
Free Cash Flow	287.94M	-329.58M	-32.19M	315.78M	-280.55M
Operating Cash Flow	529.05M	389.56M	600.41M	456.37M	-28.80M
Investing Cash Flow	-212.10M	-717.95M	-629.12M	-111.69M	-249.34M
Financing Cash Flow	-200.49M	325.08M	29.01M	-260.49M	201.68M

JMC Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 463.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 463 is above the 20-day moving average (MA) of 441.85, above the 50-day MA of 440.48, and above the 200-day MA of 452.04, indicating a bullish trend. The MACD of 5.61 indicates Negative momentum. The RSI at 68.64 is Neutral, neither overbought nor oversold. The STOCH value of 96.43 is Negative, 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
7811	83 Outperform	¥18.12B	8.91		3.30%	10.92%	170.02%
7914	74 Outperform	¥47.28B	10.22		5.31%	3.08%	131.08%
7805	72 Outperform	¥3.77B	9.59		1.74%	-5.37%	48.09%
7919	68 Neutral	¥3.18B	6.33		2.72%	2.39%	-8.65%
5704	66 Neutral	¥2.56B	1,774.63		―	-21.05%	-99.62%
7916	60 Neutral	¥4.36B	61.77		3.50%	0.38%	24.47%
Sector *	59 Neutral	AU$1.62B	9.94	2.84%	3.53%	9.79%	5.94%