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

• Market Cap: ¥17.43B
• Dividend Yield: 2.02%
• Average Volume (3M): 103.58K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.82
• Revenue Growth: 24.02%
• EPS Growth: 8.22%
• Country: JP
• Employees: 368
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 8.83
• Shares Outstanding: 13,032,420
• 10 Day Avg. Volume: 180,440
• 30 Day Avg. Volume: 103,576
• PEG Ratio: 0.37
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 8.76
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,485.00 ▲(11.99% Upside)

JRC Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, efficient cost management, and effective cash flow strategies. The stock's valuation is reasonable, supported by a fair P/E ratio and a decent dividend yield. However, technical indicators suggest a lack of strong upward momentum, which slightly tempers the overall score.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a robust market position and effective business strategy, supporting long-term expansion and profitability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Profit Margins

High profit margins reflect efficient operations and cost management, contributing to sustained profitability and competitive advantage.

Negative Factors

Equity Ratio

A lower equity ratio suggests potential vulnerability to financial instability, highlighting the need to strengthen equity to enhance resilience.

Stock Momentum

While not a fundamental factor, persistent weak stock momentum could affect investor perception and capital raising ability over time.

Leverage Management

Balanced leverage is positive, but further reducing debt could improve financial stability and reduce risk exposure.

JRC Co.,Ltd. Business Overview & Revenue Model

Company Description

JRC Co.,Ltd. designs, manufactures, and sells conveyor parts in Japan. It offers idler, roller, lightweight idlers roller, pulleys, belt cleaner, conveyor cover/safety fence, safety conveyor products peripheral and equipment, and free roller/FA roller. The company also engages in the design, manufacture, and sale of automated equipment using robots. JRC Co., Ltd. was founded in 1961 and is headquartered in Osaka, Japan.

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.

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	12.10B	11.06B	9.47B	8.96B	8.09B
Gross Profit	4.57B	4.00B	3.21B	3.02B	2.64B
EBITDA	2.13B	1.75B	1.56B	1.53B	1.14B
Net Income	1.35B	1.08B	847.46M	830.93M	545.37M
Balance Sheet
Total Assets	13.52B	13.01B	10.06B	9.96B	8.93B
Cash, Cash Equivalents and Short-Term Investments	3.51B	2.43B	1.45B	1.64B	1.24B
Total Debt	5.01B	4.63B	3.66B	3.72B	4.15B
Total Liabilities	8.51B	8.40B	6.26B	6.51B	6.21B
Stockholders Equity	5.01B	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: 1326.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1326 is below the 20-day moving average (MA) of 1333.05, below the 50-day MA of 1481.46, and above the 200-day MA of 1245.66, indicating a neutral trend. The MACD of -33.84 indicates Negative momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 is Neutral, 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
6317	78 Outperform	¥16.45B	5.03	―	3.49%	-3.27%	572.42%
6262	75 Outperform	¥22.28B	19.51	―	2.26%	19.81%	―
6224	72 Outperform	¥17.43B	14.11	―	2.02%	24.02%	8.22%
6087	64 Neutral	¥12.38B	24.56	―	3.11%	6.25%	6.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	57 Neutral	¥13.60B	-28.46	―	5.18%	1.46%	89.88%
6203	53 Neutral	¥13.56B	42.77	―	1.81%	26.09%	―