JALCO Holdings, Inc. (6625) AI Stock Analysis

• Market Cap: ¥38.56B
• Dividend Yield: 4.29%
• Average Volume (3M): 793.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -44.89%
• EPS Growth: -97.21%
• Country: JP
• Employees: 10
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 2.71
• Shares Outstanding: 117,218,620
• 10 Day Avg. Volume: 479,500
• 30 Day Avg. Volume: 793,730
• PEG Ratio: -5.18
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 4.89
• P/FCF Ratio: -6.06
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥386.00 ▼(-4.22% Downside)

The overall stock score is primarily influenced by financial performance challenges, including high leverage and negative cash flow trends. Technical analysis shows a positive trend, but valuation concerns due to a high P/E ratio weigh heavily on the score. The attractive dividend yield provides some support.

Positive Factors

Operational Efficiency

Strong operational efficiency with solid margins indicates effective cost management and the ability to maintain profitability over time.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market, enhancing stability and resilience against sector-specific downturns.

Strategic Partnerships

Strategic partnerships provide access to new markets and enhance product offerings, supporting long-term growth and competitive positioning.

Negative Factors

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flow, potentially impacting long-term financial stability.

Negative Free Cash Flow

Negative free cash flow may hinder the company's ability to invest in growth opportunities and maintain liquidity, affecting future operations.

Declining Profit Margins

Declining profit margins suggest challenges in maintaining profitability, which could impact long-term earnings potential and shareholder returns.

JALCO Holdings, Inc. Business Overview & Revenue Model

Company Description

JALCO Holdings Inc., together with its subsidiaries, engages in rental and management of real estate properties in Japan. The company operates through Money Lending, Real Estate Rental, and M&A Consulting Segments. It also involved in the money and social lending; advisory services related to M&A business; and sells and rents pachinko and pachinko equipment. In addition, the company provides management, accounting, general and legal affair, and internal control services. JALCO Holdings Inc. was founded in 1956 and is based in Tokyo, Japan.

How the Company Makes Money

JALCO Holdings generates revenue through multiple streams, primarily by manufacturing and selling high-quality electronic components and automotive parts to both domestic and international markets. The company also earns income from technology licensing agreements, where it licenses its proprietary technologies to other manufacturers. Additionally, JALCO engages in strategic investments, providing it with a diversified revenue base. Key partnerships with major automotive and electronics companies further bolster its earnings, allowing JALCO to tap into new markets and expand its product offerings.

JALCO Holdings, Inc. Financial Statement Overview

Summary

JALCO Holdings, Inc. demonstrates strong operational efficiency with solid gross and EBIT margins. However, the company faces challenges with profitability and cash flow management, as evidenced by declining net profit margins and negative free cash flow. High leverage adds financial risk, although the company maintains a reasonable return on equity.

Income Statement

The company shows a volatile revenue growth trend with significant fluctuations over the years. Gross profit margins have been strong, indicating efficient cost management. However, the net profit margin has seen a decline in the most recent year, reflecting challenges in maintaining profitability. EBIT and EBITDA margins are robust, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. However, the company maintains a reasonable return on equity, showcasing its ability to generate profits from shareholders' investments. The equity ratio is moderate, reflecting a balanced asset financing structure.

Cash Flow

Cash flow analysis indicates a negative free cash flow trend, which could impact future investments and liquidity. The operating cash flow to net income ratio is inconsistent, suggesting variability in cash generation relative to reported earnings. The free cash flow to net income ratio further highlights challenges in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.54B	6.86B	12.74B	4.96B	2.78B	2.72B
Gross Profit	3.21B	3.48B	7.28B	3.92B	2.14B	2.04B
EBITDA	3.26B	3.50B	7.69B	4.27B	2.36B	1.96B
Net Income	-174.77M	65.78M	4.16B	1.82B	906.87M	1.06B
Balance Sheet
Total Assets	76.00B	77.65B	72.60B	56.12B	48.51B	36.50B
Cash, Cash Equivalents and Short-Term Investments	1.50B	3.96B	2.58B	3.12B	1.36B	1.98B
Total Debt	51.50B	50.88B	45.22B	34.49B	30.05B	19.47B
Total Liabilities	58.96B	58.61B	53.46B	40.50B	34.50B	22.62B
Stockholders Equity	17.03B	19.04B	19.15B	15.62B	14.01B	13.88B
Cash Flow
Free Cash Flow	0.00	-5.54B	-3.24B	-4.99B	-13.43B	-7.70B
Operating Cash Flow	0.00	684.52M	8.60B	3.48B	-2.43B	219.61M
Investing Cash Flow	0.00	-4.92B	-14.56B	-5.89B	-9.19B	-5.46B
Financing Cash Flow	0.00	5.49B	5.31B	4.23B	10.78B	6.63B

JALCO Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 403.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6625, the sentiment is Positive. The current price of 403 is above the 20-day moving average (MA) of 364.10, above the 50-day MA of 375.30, and above the 200-day MA of 324.72, indicating a bullish trend. The MACD of 10.15 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 83.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6625.

JALCO Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7609	81 Outperform	¥49.01B	9.44	―	3.02%	10.24%	61.61%
6627	72 Outperform	¥50.76B	16.33	―	1.98%	3.60%	-17.45%
6855	72 Outperform	¥44.47B	11.67	―	1.48%	36.31%	101.77%
7420	66 Neutral	¥27.24B	9.60	―	4.99%	3.32%	31.11%
7510	66 Neutral	¥33.58B	12.09	―	3.13%	7.09%	13.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6625	56 Neutral	¥38.56B	-217.53	―	4.29%	-44.89%	-97.21%