JALCO Holdings, Inc. (6625) AI Stock Analysis

• Market Cap: ¥43.73B
• Dividend Yield: 4.32%
• 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): -0.66
• Shares Outstanding: 117,238,620
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥401.00 ▼(-0.99% Downside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

The stock's overall score is primarily influenced by its strong technical momentum, despite being overbought, and solid operational efficiency. However, high leverage and cash flow challenges, along with an extremely high P/E ratio, pose significant risks.

Positive Factors

Operational Efficiency

Consistently strong gross and operating margins indicate durable cost control and production efficiency in a capital-intensive semiconductor business. Sustained margin strength supports operating leverage, improves resilience to revenue swings, and underpins long-term cash generation capacity.

Return on Equity

A reasonable ROE signals management's ability to generate shareholder returns from invested capital. In a cyclical industry, above-average capital efficiency can support reinvestment and dividend policy, helping sustain investor returns even when top-line growth is uneven.

Balanced Financing Structure

A moderate equity ratio suggests the company uses a mix of debt and equity to finance assets, which can optimize capital costs and enable targeted growth investments. Balanced financing preserves flexibility for strategic capex without fully diluting shareholders.

Negative Factors

High Leverage

Significant leverage increases fixed interest obligations and financial vulnerability during downturns, reducing strategic flexibility. In semiconductors, cyclical revenue swings can quickly strain leveraged capital structures, limiting the company's ability to invest or absorb shocks.

Weak Cash Conversion

Persistent negative free cash flow and inconsistent conversion of earnings to cash constrain funding for capex, R&D, and dividends. Over months this limits strategic initiatives, increases reliance on external financing, and exacerbates risks from the firm’s existing leverage.

Volatile Revenue & Profitability

Sharp declines in revenue and EPS point to deteriorating top-line momentum and margin pressure. Persistent volatility hampers forecasting, weakens scale economies, and can erode customer and supplier confidence—making recovery and consistent investment returns more challenging.

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, challenges with profitability and cash flow management, as evidenced by declining net profit margins and negative free cash flow, along with high leverage, add financial risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 405.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6625, the sentiment is Negative. The current price of 405 is below the 20-day moving average (MA) of 405.65, below the 50-day MA of 410.52, and above the 200-day MA of 367.04, indicating a neutral trend. The MACD of -4.50 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 33.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6625.

JALCO Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6855	81 Outperform	¥89.06B	6.87	―	1.72%	36.31%	101.77%
7729	77 Outperform	¥591.77B	24.84	12.66%	2.28%	9.53%	-11.17%
6890	76 Outperform	$284.50B	15.35	5.77%	3.28%	11.15%	-19.39%
6871	71 Outperform	¥413.68B	22.63	―	1.02%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6625	60 Neutral	¥43.73B	-156.56	―	4.32%	-44.89%	-97.21%
6966	50 Neutral	¥117.14B	43.14	―	2.45%	4.60%	-21.64%