JAIC Co., Ltd. (7073) AI Stock Analysis

• Market Cap: ¥2.12B
• Dividend Yield: 1.84%
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.31
• Revenue Growth: 10.26%
• EPS Growth: 99.22%
• Country: JP
• Employees: 287
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 69.63
• Shares Outstanding: 934,200
• 10 Day Avg. Volume: 1,200
• 30 Day Avg. Volume: 2,126
• PEG Ratio: <0.01
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 4.91
• 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: 71 Outperform
• Price Target: ¥3,134.00 ▲(22.66% Upside)
• Action: Upgraded Date: 10/10/25
• Date: Action: Upgraded 10/10/25

JAIC Co., Ltd. demonstrates strong financial performance with solid revenue growth and improved profitability, which is the most significant factor in its score. The technical analysis indicates a generally positive trend, though there are some bearish signals to watch. The valuation is reasonable, making the stock attractive to value and income investors.

Positive Factors

Revenue Growth

Sustained revenue growth of 14% year-over-year indicates expanding demand or improved market penetration in its education and HR services. Over a 2-6 month horizon this trend supports greater operating scale, revenue predictability and the ability to reinvest in service offerings and customer acquisition.

High Gross Margin

An 86% gross margin signals strong pricing power or low direct costs, a durable structural advantage for service businesses. While net margin is still modest, its material improvement shows operating leverage that can sustainably boost bottom-line profits as revenue grows and fixed costs are absorbed.

Cash Generation

A large increase in free cash flow and a 3x conversion of net income to operating cash indicate strong cash conversion and quality of earnings. Durable cash generation enhances the company's ability to fund capex, strategic initiatives, and deleveraging without reliance on external financing.

Negative Factors

Leverage and Liability Profile

A debt-to-equity above 1.0 and relatively low equity ratio indicate meaningful leverage that can constrain financial flexibility. Over several months, higher obligations raise refinancing and interest-rate sensitivity, increasing vulnerability to economic shocks and limiting strategic maneuverability.

Cash Used in Financing Activities

Continued heavy cash outflows to financing (debt service, repayments, distributions) reduce available liquidity for operations and growth investments. Persisting this pattern over months could limit ability to fund capex or absorb downturns, increasing dependency on new financing.

Operating Margin Pressure

Lagging EBIT/EBITDA margins despite high gross margins suggest structural operating cost or SG&A inefficiencies. Unless addressed, these weaknesses can cap long-term profitability improvements and make earnings more sensitive to revenue slowdowns over the medium term.

JAIC Co., Ltd. Business Overview & Revenue Model

Company Description

JAIC Co.,Ltd. provides employment and recruitment support services in Japan. The company also provides education training services; and develops and sells employee education teaching materials. In addition, it develops and operates career education, and employment training and support programs with universities. The company serves young, female full-time, new graduate student, and university dropouts. JAIC Co.,Ltd. was incorporated in 1991 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JAIC Co., Ltd. generates revenue through multiple streams, including the sale of software licenses, subscription-based services, and custom development projects tailored to client needs. The company also earns income from consulting services that help organizations implement AI and data-driven strategies. Key partnerships with technology providers and integrations with popular cloud platforms further bolster its service offerings and enhance its market presence, contributing significantly to its overall revenue.

JAIC Co., Ltd. Financial Statement Overview

Summary

JAIC Co., Ltd. exhibits strong financial health with solid revenue growth and improved profitability margins. The balance sheet reflects a careful balance between debt and equity, although leverage is a potential risk. Robust cash flow generation supports the company's operational and strategic initiatives.

Income Statement

JAIC Co., Ltd. has demonstrated strong revenue growth, with a 14.0% increase from 2024 to 2025. The gross profit margin remains robust at 86.1%, and the net profit margin improved significantly to 3.3% from 0.2% the previous year. However, EBIT and EBITDA margins, though improved, indicate potential operational inefficiencies that could be addressed.

Balance Sheet

The company's debt-to-equity ratio of 1.08 and equity ratio of 34.4% suggest a balanced but slightly leveraged position. Return on equity (ROE) improved to 14.1%, indicating better utilization of shareholder funds. However, the high level of total liabilities compared to assets could pose a risk if not managed carefully.

Cash Flow

JAIC Co., Ltd. shows strong cash flow management with a substantial increase in free cash flow, growing by 305.4% from 2024 to 2025. The operating cash flow to net income ratio of 3.0 indicates efficient conversion of income into cash. However, a significant portion of cash is used in financing activities, which should be monitored.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	4.43B	4.19B	3.68B	3.21B	2.59B	2.24B
Gross Profit	3.76B	3.61B	3.31B	3.00B	2.43B	2.10B
EBITDA	443.01M	387.81M	223.05M	333.10M	196.14M	-180.17M
Net Income	176.16M	137.78M	5.94M	140.51M	90.64M	-221.83M
Balance Sheet
Total Assets	3.24B	2.83B	2.44B	2.91B	2.12B	2.26B
Cash, Cash Equivalents and Short-Term Investments	1.76B	1.40B	1.09B	1.24B	1.26B	1.15B
Total Debt	1.38B	1.05B	921.79M	1.30B	804.38M	1.15B
Total Liabilities	2.25B	1.87B	1.56B	1.98B	1.29B	1.50B
Stockholders Equity	1.00B	973.42M	882.90M	933.91M	835.65M	763.11M
Cash Flow
Free Cash Flow	0.00	391.00M	96.48M	-42.37M	297.53M	-504.82M
Operating Cash Flow	0.00	417.33M	138.84M	90.82M	369.00M	-404.30M
Investing Cash Flow	0.00	-226.42M	135.78M	-499.62M	100.10M	-155.86M
Financing Cash Flow	0.00	119.90M	-416.56M	384.06M	-342.08M	543.32M

JAIC Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2555.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7073, the sentiment is Negative. The current price of 2555 is above the 20-day moving average (MA) of 2376.05, above the 50-day MA of 2493.07, and above the 200-day MA of 2335.93, indicating a bearish trend. The MACD of -43.22 indicates Positive momentum. The RSI at 32.46 is Neutral, neither overbought nor oversold. The STOCH value of 9.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7073.

JAIC Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4668	78 Outperform	¥18.01B	10.39	―	3.81%	9.96%	252.72%
9256	76 Outperform	¥3.00B	12.84	―	2.00%	9.34%	-3.26%
7073	71 Outperform	¥2.12B	11.13	―	1.84%	10.26%	99.22%
4678	64 Neutral	¥2.33B	10.21	―	3.34%	1.92%	71.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3998	57 Neutral	¥2.22B	-464.27	―	―	-4.02%	-105.52%
4720	51 Neutral	¥2.31B	-19.71	―	―	-1.21%	-50.91%