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

• Market Cap: ¥16.71B
• Dividend Yield: 1.86%
• Average Volume (3M): 103.58K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.85
• 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 Growth

Sustained revenue growth (16.76%) indicates durable demand for JRC's radar, communications and navigation products. Combined with recurring service contracts and repeat government/private customers, this supports predictable multi‑period top‑line expansion and greater long‑term visibility into order pipelines.

Cash Flow Strength

Very strong free cash flow growth and better than 1x cash conversion show the business generates ample internal liquidity. That improves capacity to fund R&D, sustain service operations, pay dividends, and reduce debt without relying on external financing, enhancing long‑term financial flexibility.

High Profitability & ROE

Elevated ROE and healthy gross/EBIT margins reflect efficient capital deployment and favorable product economics in niche electronic systems. Strong margins support reinvestment, cushioning against cyclical pressures and sustaining competitive R&D and service capabilities over multiple quarters.

Negative Factors

Moderate Leverage

A debt/equity of ~1 and modest equity ratio leave less capital buffer versus peers. In a downturn or if large bids require working capital, leverage constrains flexibility and may force precautionary measures (debt raises or reduced capex), limiting strategic optionality over several quarters.

Sector Concentration

Heavy exposure to maritime/aerospace/defense and government procurement concentrates revenue risk to cyclical budgets and long procurement cycles. Political or defense spending shifts and program timing can cause durable variability in orders and revenue recognition across 2–6 months.

Limited Scale

A relatively small employee base can constrain capacity to pursue multiple large or simultaneous international programs, slow R&D scaling, and limit aftermarket/service reach. This may impede quick expansion into adjacent markets or execution on very large contracts over the medium term.

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: Negative
• Last Price: 1412.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1412 is above the 20-day moving average (MA) of 1391.65, above the 50-day MA of 1374.04, and above the 200-day MA of 1381.27, indicating a bearish trend. The MACD of -29.45 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 30.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥83.73B	136.93	5.02%	3.23%	-10.00%	-51.92%
6349	77 Outperform	¥83.16B	7.02	8.33%	5.31%	5.45%	90.90%
6652	76 Outperform	¥88.82B	19.06	―	4.45%	0.59%	-10.60%
6381	75 Outperform	¥64.27B	13.24	―	3.95%	-1.67%	-4.39%
6224	72 Outperform	¥16.71B	15.62	―	1.86%	24.02%	8.22%
6363	70 Outperform	¥69.17B	4.09	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%