JMACS Japan Co., Ltd. (5817) AI Stock Analysis

• Market Cap: ¥12.06B
• Dividend Yield: 0.94%
• Average Volume (3M): 97.74K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.61
• Revenue Growth: -0.58%
• EPS Growth: -35.63%
• Country: JP
• Employees: 161
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 32.50
• Shares Outstanding: 5,791,555
• 10 Day Avg. Volume: 62,220
• 30 Day Avg. Volume: 97,740
• PEG Ratio: 0.38
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 39.05
• 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: 66 Neutral
• Price Target: ¥2,321.00 ▲(174.35% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is supported by steady revenue growth and a sharp improvement to positive free cash flow, alongside a stable balance sheet. It is held back by thin profitability/low ROE, a high P/E with a low dividend yield, and technical indicators that suggest the recent rally is overextended (RSI 82.5; Stochastic 100) despite the strong uptrend.

Positive Factors

Consistent Revenue Growth & FCF Improvement

Consistent revenue growth combined with a material swing to positive free cash flow strengthens durable cash generation. This improves ability to fund R&D, service obligations, and strategic investments while reducing refinancing risk, supporting resilience over months.

Manageable Leverage and Solid Equity Base

Moderate leverage and a 51% equity ratio provide financial flexibility and a solid capital base. This structural balance-sheet strength supports capex, partnerships, and buffers cyclical shocks without immediate refinancing pressure over a 2–6 month horizon.

Product-Level Profitability (Gross & EBITDA Margins)

Healthy gross margin and positive EBITDA margin indicate the business earns meaningful product-level profitability, implying pricing power or production advantages. Sustained margins enable ongoing R&D investment and long-term competitiveness across quarters.

Negative Factors

Thin Net and EBIT Margins

Very thin net and EBIT margins leave limited operating cushion and constrain the company's ability to absorb cost inflation or invest aggressively. Structurally low margins restrict free cash flow upside and compress returns to shareholders over several months.

Low Return on Equity

ROE of 2.2% signals weak capital efficiency: the company generates modest returns on shareholders' capital. This structural limitation can hinder the ability to fund growth internally and may reduce investor appetite absent operational improvement.

Exposure to Cyclical End Markets

Concentration in automotive, telecom and consumer electronics exposes revenue to end-market cyclicality and capex cycles. Without clear diversification or long-term sticky contracts, demand swings pose a sustained risk to revenue stability over a 2–6 month horizon.

JMACS Japan Co., Ltd. Business Overview & Revenue Model

Company Description

JMACS Japan Co., Ltd. manufactures and sells instrumentation cables, control cables, communication cables, disaster prevention cables, optical fiber cables, performance electric cable products in Japan. It also offers smart system solutions, AI solution, wireless sensor system, display system for FA line, and cable, as well as contract development solution. The company was formerly known as Nihon Electric Wire & Cable Co., Ltd. and changed its name to JMACS Japan Co., Ltd. in September 2015. JMACS Japan Co., Ltd. was incorporated in 1948 and is headquartered in Kato, Japan.

How the Company Makes Money

JMACS Japan Co., Ltd. generates revenue primarily through the sale of electronic components and integrated circuits to various industries including telecommunications, automotive, and consumer electronics. The company has established key revenue streams from long-term contracts with major manufacturers and suppliers, which ensure steady demand for its products. Additionally, JMACS engages in research and development activities, creating advanced technologies that can be patented and licensed to other firms, further diversifying its income sources. Strategic partnerships with leading technology firms enhance its market presence and contribute to its earnings by expanding its distribution channels and product offerings.

JMACS Japan Co., Ltd. Financial Statement Overview

Summary

Revenue has been rising consistently, including 5.3% growth from 2023 to 2024, and free cash flow improved materially from -¥799M (2024) to +¥59.9M (2025). Offsetting this, profitability is thin (net margin 2.2%, EBIT margin 1.3%) and returns are low (ROE 2.2%), though leverage appears manageable (Debt/Equity 0.68; equity ratio 51%).

Income Statement

The company has shown a consistent increase in total revenue over the past years, with a notable growth of 5.3% from 2023 to 2024. Gross profit margin is healthy at 21.2% for 2025, but the net profit margin of 2.2% indicates room for improvement. The EBIT margin is low at 1.3%, suggesting tight operational efficiency, while the EBITDA margin of 5.8% is better, reflecting some leverage in earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company has a moderate Debt-to-Equity Ratio of 0.68 for 2025, indicating balanced leverage. Return on Equity (ROE) stands at 2.2%, which is relatively low, suggesting limited returns on shareholder equity. The Equity Ratio is 51.0%, reflecting a solid equity base relative to total assets.

Cash Flow

There is a significant improvement in free cash flow from a deficit of ¥799 million in 2024 to a positive ¥59.9 million in 2025, indicating effective cash management. The Operating Cash Flow to Net Income Ratio of 1.16 suggests that operational cash flow is adequately covering net income. The Free Cash Flow to Net Income Ratio is 0.52, indicating that a portion of net income is being converted into free cash flow.

Breakdown	Feb 2024	Feb 2023	Feb 2022	Feb 2021	Feb 2021
Income Statement
Total Revenue	5.20B	5.34B	5.06B	4.78B	4.36B
Gross Profit	1.10B	1.18B	1.16B	1.18B	1.05B
EBITDA	299.14M	242.38M	370.92M	297.71M	170.38M
Net Income	116.33M	71.26M	206.43M	37.44M	-67.02M
Balance Sheet
Total Assets	10.28B	9.15B	8.06B	8.54B	8.46B
Cash, Cash Equivalents and Short-Term Investments	1.75B	644.23M	526.59M	526.79M	536.00M
Total Debt	3.57B	3.08B	2.03B	2.66B	2.81B
Total Liabilities	5.04B	4.59B	3.45B	4.11B	4.03B
Stockholders Equity	5.24B	4.55B	4.60B	4.44B	4.43B
Cash Flow
Free Cash Flow	59.97M	-799.03M	-350.10M	148.57M	272.43M
Operating Cash Flow	135.36M	-50.77M	-12.72M	177.24M	318.07M
Investing Cash Flow	-52.31M	-689.46M	683.17M	49.30M	1.82M
Financing Cash Flow	1.02B	857.87M	-670.65M	-191.63M	-92.92M

JMACS Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 846.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5817, the sentiment is Positive. The current price of 846 is below the 20-day moving average (MA) of 1276.14, below the 50-day MA of 1189.99, and above the 200-day MA of 666.42, indicating a bullish trend. The MACD of 136.47 indicates Negative momentum. The RSI at 82.49 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5817.

JMACS Japan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6718	81 Outperform	¥46.00B	18.70	―	4.43%	0.63%	-24.87%
6675	79 Outperform	¥46.31B	27.24	―	2.26%	20.13%	33.43%
6820	70 Outperform	¥46.57B	22.04	―	2.93%	-0.90%	-13.24%
6835	68 Neutral	¥30.98B	10.78	24.14%	0.77%	6.43%	368.06%
6703	67 Neutral	¥287.08B	15.67	7.16%	2.31%	-2.36%	-61.50%
5817	66 Neutral	¥12.06B	34.03	―	0.94%	-0.58%	-35.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%