JALCO Holdings, Inc. (6625) AI Stock Analysis

• Market Cap: ¥33.27B
• Dividend Yield: 6.08%
• Average Volume (3M): 231.84K
• Price to Earnings (P/E): 484.1
• Beta (1Y): 0.86
• Revenue Growth: -46.16%
• EPS Growth: -98.25%
• Country: JP
• Employees: 10
• Sector: Technology
• Sector Strength: 89
• Industry: Semiconductors
• EPS (TTM): -0.50
• Shares Outstanding: 117,218,620
• 10 Day Avg. Volume: 277,960
• 30 Day Avg. Volume: 231,843
• PEG Ratio: -0.46
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥309.00
• Price Target Upside: 4.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥310.00 ▲(4.73%Upside)

The stock's overall score is driven by solid profitability metrics but is weighed down by high leverage, declining revenue, and negative free cash flow trends. Technical indicators show neutral momentum, while a high P/E ratio suggests overvaluation despite a strong dividend yield.

JALCO Holdings, Inc. Business Overview & Revenue Model

Company Description

JALCO Holdings, Inc. (6625) is a Japanese company engaged in the design, manufacture, and sale of various household and consumer products. The company operates in sectors such as housing equipment, household products, and lifestyle goods, offering a wide range of items including kitchen appliances, bathroom accessories, and other home-related products. JALCO Holdings is known for its commitment to quality and innovation, consistently introducing new products that cater to the evolving needs of consumers.

How the Company Makes Money

JALCO Holdings, Inc. makes money primarily through the sale of its diverse range of consumer and household products. The company generates revenue by selling its products through various distribution channels, including direct sales, retail partnerships, and online platforms. Key revenue streams include the housing equipment sector, where it provides innovative and high-quality kitchen and bathroom solutions, and the lifestyle goods sector, which includes a variety of household items. Partnerships with major retailers and e-commerce platforms significantly contribute to its earnings, expanding its market reach and consumer base. Additionally, the company's focus on product innovation and quality helps maintain a competitive edge in the market, attracting a loyal customer base.

JALCO Holdings, Inc. Financial Statement Overview

Summary

JALCO Holdings displays robust revenue growth and profitability, with effective cost management reflected in strong margins. However, the high leverage in the balance sheet and negative free cash flow highlight potential risks and liquidity concerns that need to be addressed.

Income Statement

JALCO Holdings shows strong income statement performance with consistent revenue growth, highlighted by a significant revenue increase from 2023 to 2024. The company maintains solid profit margins with a gross profit margin of 68.3% and a net profit margin of 25.2% for TTM. The EBIT margin is impressive at 58%, indicating effective cost management. However, net income has decreased in the TTM period compared to the previous annual report, showing some volatility.

Balance Sheet

The balance sheet reveals a solid equity position with a debt-to-equity ratio of 2.71 in the TTM, indicating high leverage typical for the semiconductor industry. The equity ratio stands at 24.4%, reflecting moderate financial stability. Return on equity is robust at 13.5%, showcasing effective use of equity to generate profits. However, the high debt levels pose a potential risk, necessitating careful management.

Cash Flow

Cash flow analysis indicates challenges, with free cash flow being consistently negative, signaling issues in covering capital expenditures. The operating cash flow is zero in the TTM, which could impact liquidity. The company must focus on improving cash-generating activities to ensure financial health. Historical data shows fluctuations in cash flows, highlighting the need for stabilized cash management strategies.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	10.21B	12.74B	4.96B	2.78B	2.72B	1.72B
Gross Profit	6.97B	7.28B	3.92B	2.14B	2.04B	1.42B
EBITDA	6.41B	7.95B	4.27B	1.99B	1.55B	1.28B
Net Income	2.57B	4.16B	1.82B	906.87M	1.06B	565.00M
Balance Sheet
Total Assets	78.33B	72.60B	56.12B	48.51B	36.50B	27.69B
Cash, Cash Equivalents and Short-Term Investments	2.68B	2.58B	3.02B	1.19B	1.81B	509.22M
Total Debt	51.82B	45.22B	34.49B	30.05B	19.47B	17.02B
Total Liabilities	59.23B	53.46B	40.50B	34.50B	22.62B	18.48B
Stockholders Equity	19.10B	19.15B	15.62B	14.01B	13.88B	9.21B
Cash Flow
Free Cash Flow	0.00	-3.24B	-4.99B	-13.43B	-7.70B	-7.68B
Operating Cash Flow	0.00	8.60B	3.48B	-2.43B	219.61M	-1.68B
Investing Cash Flow	0.00	-14.56B	-5.89B	-9.19B	-5.46B	-5.66B
Financing Cash Flow	0.00	5.31B	4.23B	10.78B	6.63B	7.12B

JALCO Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 296.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6625, the sentiment is Neutral. The current price of 296 is below the 20-day moving average (MA) of 304.70, below the 50-day MA of 302.46, and below the 200-day MA of 323.74, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥38.33B	8.60		3.86%	7.88%	39.72%
6855	77 Outperform	¥29.28B	8.48		1.73%	36.47%	454.90%
6627	75 Outperform	¥29.34B	8.89		3.41%	3.61%	-14.91%
7420	73 Outperform	¥26.90B	12.22		5.63%	6.47%	-6.67%
7510	73 Outperform	¥28.93B	10.93		3.63%	-0.38%	6.16%
Sector *	69 Neutral	¥230.46B	14.12	7.50%	2.71%	9.13%	8.48%
6625	56 Neutral	¥33.27B	484.06		6.08%	-46.16%	-98.25%