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

• Market Cap: ¥18.50B
• Dividend Yield: 1.86%
• Average Volume (3M): 103.58K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.79
• Revenue Growth: 24.02%
• EPS Growth: 8.22%
• Country: JP
• Employees: 368
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 20.88
• Shares Outstanding: 13,106,240
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 116.7
• Revenue Forecast (FY): ¥15.40B

• Rating: 72 Outperform
• Price Target: ¥1,673.00 ▲(18.48% Upside)
• Action: Reiterated Date: 11/13/25
• Date: Action: Reiterated 11/13/25

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 & Profit Growth

Sustained revenue growth of 16.76% with healthy gross and net margins indicates expanding product adoption and disciplined cost control. Over the next 2–6 months this supports stable top-line momentum, funds reinvestment in R&D and services, and underpins durable profitability across cycles.

Cash Generation Strength

Very strong free cash flow growth and cash conversion metrics provide durable internal funding for capex, maintenance of service contracts, debt service and dividends. Robust cash generation reduces refinancing risk and gives management flexibility to invest in product development and long-term contracts.

Market Position & Long-term Contracts

Leading position in maritime, aerospace and defense with established government and private partnerships creates recurring revenue and high switching costs. Long-term service contracts and reputation for reliability support predictable revenue streams and durable market share over multiple reporting periods.

Negative Factors

Leverage / Equity Ratio

A debt-to-equity around 1.0 and mid-30s equity ratio denote balanced but non-conservative capitalization. Over months this limits the firm's buffer against macro shocks, may constrain large strategic investments without external financing, and increases sensitivity to higher interest rates or adverse cash flow swings.

Industry Concentration Risk

Concentration in maritime, aerospace and defense exposes revenues to procurement cycles, commercial shipping volatility, and defense budget timing. Structural dependency on a narrow set of end-markets can produce multi-quarter revenue swings and increases execution risk tied to a few large contracts.

Limited Net Margin Buffer

Net margin under 10% provides less cushion against rising input costs, wage inflation, or pricing pressure in commercial segments. Structurally, this reduces the firm's ability to absorb cost shocks while maintaining investible cash flow and could compress returns if competitive dynamics or supply costs worsen.

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 through the sale of its high-tech products and services, which include radar systems, communication equipment, and navigation solutions. The company has established key revenue streams from both the sale of its core products and ongoing service contracts for maintenance and support. Significant partnerships with government agencies and private sector companies in the maritime and defense industries further bolster its earnings. Additionally, JRC benefits from its reputation for quality and reliability, leading to repeat business and long-term contracts that contribute to its financial stability.

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	Feb 2025	Feb 2024	Feb 2023	Feb 2022
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: Neutral
• Last Price: 1412.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6224, the sentiment is Neutral. The current price of 1412 is below the 20-day moving average (MA) of 1426.42, above the 50-day MA of 1392.24, and above the 200-day MA of 1368.31, indicating a neutral trend. The MACD of 21.56 indicates Positive momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 15.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6224.

JRC Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6104	81 Outperform	¥99.47B	48.30	5.02%	3.23%	-10.00%	-51.92%
6349	77 Outperform	¥91.79B	9.96	6.26%	5.31%	5.45%	90.90%
6652	76 Outperform	¥92.05B	32.00	―	4.45%	0.59%	-10.60%
6381	75 Outperform	¥68.69B	16.94	―	3.95%	-1.67%	-4.39%
6224	72 Outperform	¥18.50B	14.95	―	1.86%	24.02%	8.22%
6363	70 Outperform	¥70.88B	14.83	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%