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JALCO Holdings, Inc. (JP:6625)
:6625
Japanese Market

JALCO Holdings, Inc. (6625) AI Stock Analysis

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JP

JALCO Holdings, Inc.

(6625)

Rating:56Neutral
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. (6625) vs. iShares MSCI Japan ETF (EWJ)

JALCO Holdings, Inc. Business Overview & Revenue Model

Company DescriptionJALCO 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 MoneyJALCO 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
85
Very Positive
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
70
Positive
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
65
Positive
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue10.21B12.74B4.96B2.78B2.72B1.72B
Gross Profit6.97B7.28B3.92B2.14B2.04B1.42B
EBITDA6.41B7.95B4.27B1.99B1.55B1.28B
Net Income2.57B4.16B1.82B906.87M1.06B565.00M
Balance Sheet
Total Assets78.33B72.60B56.12B48.51B36.50B27.69B
Cash, Cash Equivalents and Short-Term Investments2.68B2.58B3.02B1.19B1.81B509.22M
Total Debt51.82B45.22B34.49B30.05B19.47B17.02B
Total Liabilities59.23B53.46B40.50B34.50B22.62B18.48B
Stockholders Equity19.10B19.15B15.62B14.01B13.88B9.21B
Cash Flow
Free Cash Flow0.00-3.24B-4.99B-13.43B-7.70B-7.68B
Operating Cash Flow0.008.60B3.48B-2.43B219.61M-1.68B
Investing Cash Flow0.00-14.56B-5.89B-9.19B-5.46B-5.66B
Financing Cash Flow0.005.31B4.23B10.78B6.63B7.12B

JALCO Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price296.00
Price Trends
50DMA
302.46
Negative
100DMA
299.73
Positive
200DMA
323.74
Negative
Market Momentum
MACD
-0.94
Positive
RSI
48.98
Neutral
STOCH
20.00
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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥38.33B8.60
3.86%7.88%39.72%
77
Outperform
¥29.28B8.48
1.73%36.47%454.90%
75
Outperform
¥29.34B8.89
3.41%3.61%-14.91%
73
Outperform
¥26.90B12.22
5.63%6.47%-6.67%
73
Outperform
¥28.93B10.93
3.63%-0.38%6.16%
69
Neutral
¥230.46B14.127.50%2.71%9.13%8.48%
56
Neutral
¥33.27B484.06
6.08%-46.16%-98.25%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6625
JALCO Holdings, Inc.
301.00
-219.27
-42.15%
JP:6627
Tera Probe, Inc.
3,215.00
-1,673.63
-34.24%
JP:6855
Japan Electronic Materials Corporation
2,288.00
-1,608.52
-41.28%
JP:7420
Satori Electric Co., Ltd.
1,651.00
-327.72
-16.56%
JP:7510
Takebishi Corporation
1,819.00
-460.36
-20.20%
JP:7609
Daitron Co., Ltd.
3,670.00
887.71
31.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025