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

• Market Cap: ¥2.22B
• Dividend Yield: 1.85%
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.23
• 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: 933,500
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥2,618.00 ▲(7.87% Upside)

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

The consistent revenue growth indicates a strong demand for JAIC's services and effective business strategies, supporting long-term market position and expansion.

Profitability Margins

Improved profitability margins reflect efficient cost management and pricing strategies, enhancing the company's ability to reinvest in growth and innovation.

Cash Flow Management

Strong cash flow management ensures financial stability and flexibility, enabling JAIC to fund operations and strategic initiatives without relying heavily on external financing.

Negative Factors

Leverage Risk

While the balance sheet is balanced, the leverage level could pose risks if market conditions change, potentially impacting the company's ability to meet financial obligations.

Operational Inefficiencies

Operational inefficiencies, as indicated by the margins, may hinder profitability and competitiveness, necessitating strategic improvements to optimize operations.

High Liabilities

A high liability level can strain financial resources and limit strategic flexibility, potentially impacting the company's long-term financial health if not managed properly.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 2427.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7073, the sentiment is Positive. The current price of 2427 is above the 20-day moving average (MA) of 2425.15, above the 50-day MA of 2400.96, and above the 200-day MA of 2275.58, indicating a bullish trend. The MACD of 4.88 indicates Positive momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 41.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7073.

JAIC Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9256	76 Outperform	¥2.85B	11.59	―	2.01%	9.34%	-3.26%
7073	71 Outperform	¥2.22B	11.64	―	1.85%	10.26%	99.22%
4668	64 Neutral	¥17.76B	10.35	―	3.81%	9.96%	252.72%
4678	64 Neutral	¥2.02B	10.53	―	3.32%	1.92%	71.20%
3998	63 Neutral	¥2.15B	-301.92	―	―	-4.02%	-105.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4720	51 Neutral	¥2.28B	-7.89	―	―	-1.21%	-50.91%