JRC Co.,Ltd. (6224) AI Stock Analysis

• Market Cap: ¥22.75B
• Dividend Yield: 1.52%
• Average Volume (3M): 99.86K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.79
• Revenue Growth: 22.80%
• EPS Growth: 39.62%
• Country: JP
• Employees: 368
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 41.14
• Shares Outstanding: 12,824,860
• 10 Day Avg. Volume: 98,360
• 30 Day Avg. Volume: 99,863
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,763.00
• Price Target Upside: -0.62% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥1,763.00 ▼(-0.62% Downside)

JRC Co., Ltd. scores well due to its strong financial performance and upward technical momentum. Financial metrics reveal robust growth and profitability, while the technical analysis indicates a strong upward trend, albeit with some caution due to overbought signals. Valuation metrics suggest a fair price, offering a balanced risk-reward profile.

JRC Co.,Ltd. Business Overview & Revenue Model

Company Description

JRC Co., Ltd. (6224) is a Japanese company engaged in the manufacturing and distribution of electronic equipment. The company specializes in providing advanced communication and navigation systems, offering a range of products that cater to various sectors including maritime, aviation, and infrastructure. With a strong focus on innovation and quality, JRC Co., Ltd. serves a global clientele, ensuring reliable and efficient solutions tailored to the needs of its diverse customer base.

How the Company Makes Money

JRC Co., Ltd. generates revenue primarily through the sale of its communication and navigation equipment. The company's key revenue streams include the direct sale of products to businesses and government entities in sectors like maritime and aviation, where precise and reliable communication systems are critical. Additionally, JRC Co., Ltd. may earn income from providing maintenance and support services for its equipment, ensuring long-term relationships with its clients. Significant partnerships with industry leaders and government contracts can also contribute to its earnings, as these collaborations often lead to large-scale projects and recurring revenue opportunities.

JRC Co.,Ltd. Financial Statement Overview

Summary

JRC Co., Ltd. exhibits a robust financial standing with strong revenue and profit growth, efficient cost management, and effective cash flow strategies. The company maintains a balanced leverage position with a good return on equity. While the financials are solid, opportunities remain to enhance equity ratios for improved financial resilience. Overall, JRC Co., Ltd. demonstrates a favorable financial performance, positioning it well within the industrial machinery sector.

Income Statement

JRC Co., Ltd. demonstrates strong revenue growth with a notable increase from previous years, resulting in a 16.76% growth rate. The gross profit margin stands at 36.14%, indicating efficient cost management. Additionally, the company has a healthy net profit margin of 9.75%. The EBIT and EBITDA margins are also strong at 12.46% and 15.83%, respectively, highlighting robust operational performance. These metrics underscore the company's profitability and growth trajectory.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 1.00, reflecting balanced leverage. The return on equity is impressive at 23.38%, indicating effective use of equity to generate profits. The equity ratio is 35.44%, showing a healthy proportion of equity financing. While the leverage is managed well, there is room for improvement in equity ratios to strengthen financial stability further.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 241.35%, showcasing significant improvement in cash generation. The operating cash flow to net income ratio is 1.55, indicating good cash conversion efficiency. Additionally, the free cash flow to net income ratio stands at 1.30, suggesting effective utilization of net income in generating free cash flow. These metrics reflect strong cash flow management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.06B	11.06B	9.47B	8.96B	8.09B
Gross Profit	4.00B	4.00B	3.21B	3.02B	2.64B
EBITDA	1.74B	1.75B	1.56B	1.53B	1.14B
Net Income	1.08B	1.08B	847.46M	830.93M	545.37M
Balance Sheet
Total Assets	13.01B	13.01B	10.06B	9.96B	8.93B
Cash, Cash Equivalents and Short-Term Investments	2.43B	2.43B	1.45B	1.64B	1.24B
Total Debt	4.63B	4.63B	3.66B	3.72B	4.15B
Total Liabilities	8.40B	8.40B	6.26B	6.51B	6.21B
Stockholders Equity	4.61B	4.61B	3.80B	3.45B	2.72B
Cash Flow
Free Cash Flow	0.00	1.40B	410.38M	924.12M	844.03M
Operating Cash Flow	0.00	1.68B	576.37M	1.03B	1.02B
Investing Cash Flow	0.00	-1.15B	223.08M	-104.40M	-260.95M
Financing Cash Flow	0.00	505.02M	-987.67M	-530.06M	-528.63M

JRC Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1774.00
• 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:6224, the sentiment is Positive. The current price of 1774 is above the 20-day moving average (MA) of 1619.36, above the 50-day MA of 1438.96, and above the 200-day MA of 1093.52, indicating a bullish trend. The MACD of 87.57 indicates Negative momentum. The RSI at 74.22 is Negative, neither overbought nor oversold. The STOCH value of 90.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6224.

JRC Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6224	77 Outperform	¥22.75B	16.30		1.52%	22.80%	39.62%
6262	76 Outperform	¥16.75B	17.59		1.94%	33.05%	―
6087	73 Outperform	¥13.39B	26.58		3.01%	5.77%	-22.05%
6203	72 Outperform	¥16.86B	18.33		1.47%	29.02%	―
6317	71 Outperform	¥15.48B	5.29		2.98%	-6.23%	405.48%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%
6210	54 Neutral	¥13.64B	―		5.26%	-1.14%	68.17%