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

• Market Cap: ¥1.81B
• Dividend Yield: 1.84%
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.32
• Revenue Growth: 10.26%
• EPS Growth: 99.22%
• Country: JP
• Employees: 287
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 934,200
• 10 Day Avg. Volume: 1,200
• 30 Day Avg. Volume: 2,126
• PEG Ratio: -3.01
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 6.19
• 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: 59 Neutral
• Price Target: ¥2,270.00 ▼(-11.15% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by improving financial performance (strong top-line growth and better cash conversion), partially offset by leverage and historically uneven profitability. Technicals are the largest near-term drag due to a clear downtrend and negative momentum indicators, while valuation is supportive with a reasonable P/E and a moderate dividend yield.

Positive Factors

Accelerating revenue growth

A large acceleration in top-line growth demonstrates strengthening market demand and execution. Durable revenue momentum provides a wider base to absorb variability, supports scaling of services, and creates room for reinvestment into products and distribution over the next several quarters.

Improving cash generation and conversion

Near-parity of free cash flow and reported earnings in 2026 indicates high earnings quality and better cash conversion. Persistent positive OCF and FCF strengthen the company's ability to fund operations, service debt, and finance growth without immediate external financing.

Return to profitability and recovery

The company has moved from loss-making periods to sustained profitability, signaling operational stabilization. This recovery underpins strategic flexibility, supports incremental margin improvement initiatives, and reduces execution risk versus prior loss years.

Negative Factors

Elevated leverage

Debt roughly equal to equity constrains financial flexibility and increases interest-rate and refinancing risk. Elevated leverage limits capacity for opportunistic investment, heightens sensitivity to cash-flow swings, and may restrict strategic choices during downturns.

Thin and declining margins

Margins have compressed materially from prior peaks, reducing the buffer against cost shocks and limiting retained earnings. Persistently thin margins constrain the company's ability to generate surplus cash for growth, dividends, or rapid deleveraging.

Uneven historical profitability

A track record of volatile earnings and occasional losses indicates execution and demand sensitivity. This unevenness raises forecasting risk, complicates capital-allocation decisions, and suggests future profits may fluctuate with the cycle or operational hiccups.

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

Detailed information on JAIC Co., Ltd.'s revenue model, key revenue streams, and significant partnerships or factors contributing to earnings is null.

JAIC Co., Ltd. Financial Statement Overview

Summary

Strong recent revenue acceleration and a return to profitability with improved cash conversion support the score, but thinner margins versus prior peaks and a leveraged capital structure (debt roughly around equity) add risk and limit flexibility.

Income Statement

Revenue has expanded meaningfully over the last several years, accelerating in the latest annual period (2026 annual revenue growth of ~113% vs. ~14% in 2025), which supports the growth narrative. Profitability is positive but thinner than earlier peaks: net margin is ~2.9% in 2026 (down from ~4.4% in 2023), and operating profitability has also moderated (EBIT margin ~4.5% in 2026 vs. ~7.2% in 2023). The company has largely recovered from the 2021 loss-making year, but earnings power appears somewhat volatile across the cycle (notably very low profits in 2024).

Balance Sheet

Leverage is elevated for the business profile, with debt consistently around or above equity (debt-to-equity ~1.11 in 2026; ~1.08 in 2025), which reduces balance-sheet flexibility. Returns on equity are currently healthy (~12% in 2026), but have been inconsistent over time (very low in 2024 and negative in 2021), indicating variability in underlying profitability. Overall asset growth is supportive, but the capital structure remains a key constraint.

Cash Flow

Cash generation is currently solid: operating cash flow is positive in 2026 and 2025, and free cash flow is positive and nearly matches earnings in 2026 (free cash flow to net income ~0.98), suggesting decent earnings quality. However, cash flow has been uneven historically (negative free cash flow in 2023 and negative operating/free cash flow in 2021), pointing to execution and working-capital sensitivity. Cash conversion is improving versus prior years, but the track record is not yet consistently stable.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	4.43B	4.48B	4.19B	3.68B	3.21B	2.59B
Gross Profit	3.76B	3.73B	3.61B	3.31B	3.00B	2.43B
EBITDA	443.01M	354.02M	387.81M	223.05M	333.10M	196.14M
Net Income	176.16M	130.03M	137.78M	5.94M	140.51M	90.64M
Balance Sheet
Total Assets	3.24B	3.13B	2.83B	2.44B	2.92B	2.13B
Cash, Cash Equivalents and Short-Term Investments	1.76B	1.76B	1.40B	1.09B	1.24B	1.26B
Total Debt	1.38B	1.19B	1.05B	921.79M	1.30B	804.38M
Total Liabilities	2.25B	2.07B	1.87B	1.57B	1.99B	1.30B
Stockholders Equity	1.00B	1.07B	973.43M	882.90M	933.91M	835.65M
Cash Flow
Free Cash Flow	0.00	363.45M	391.00M	96.48M	-42.37M	297.53M
Operating Cash Flow	0.00	369.36M	417.33M	138.84M	90.82M	369.00M
Investing Cash Flow	0.00	-110.47M	-226.42M	135.78M	-499.62M	100.10M
Financing Cash Flow	0.00	101.88M	119.90M	-416.56M	384.06M	-342.08M

JAIC Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2555.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 2303.70, above the 50-day MA of 2435.96, and above the 200-day MA of 2354.41, indicating a bearish trend. The MACD of -75.47 indicates Positive momentum. The RSI at 22.43 is Positive, neither overbought nor oversold. The STOCH value of 12.81 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	¥17.68B	13.55	―	3.81%	9.96%	252.72%
6200	75 Outperform	¥59.13B	18.77	―	2.94%	16.32%	23.04%
2415	74 Outperform	¥18.74B	7.46	―	3.47%	4.22%	27.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9562	61 Neutral	¥3.23B	-47.40	―	2.00%	25.16%	127.57%
9339	60 Neutral	¥2.86B	31.62	―	1.33%	-7.47%	378.86%
7073	59 Neutral	¥1.81B	17.30	―	1.84%	10.26%	99.22%