Jimoto Holdings, Inc. (7161) AI Stock Analysis

• Market Cap: ¥13.08B
• Dividend Yield: 1.24%
• Average Volume (3M): 57.22K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.88
• Revenue Growth: 5.92%
• EPS Growth: N/A
• Country: JP
• Employees: 1,418
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 34.18
• Shares Outstanding: 26,840,263
• 10 Day Avg. Volume: 54,580
• 30 Day Avg. Volume: 57,223
• PEG Ratio: -0.06
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 0.32
• 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: 63 Neutral
• Price Target: ¥570.00 ▲(31.34% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is primarily driven by mixed financial performance (operational efficiency and cash generation strengths offset by weaker recent revenue growth and higher leverage). Technicals add caution due to near-term weakness and low momentum readings despite longer-term trend support, while valuation is a positive contributor due to the very low P/E.

Positive Factors

Improving operational margins

Sustained improvement in gross and EBIT/EBITDA margins indicates the company is extracting more operating leverage from its development and management businesses. Over 2-6 months this supports higher operating cash flow, greater resilience to revenue volatility, and increased capacity to reinvest in projects or reduce leverage.

Solid cash generation vs net income

A strong operating cash flow to net income ratio reflects high cash conversion of reported profits, signaling earnings quality and reliable internal funding. This durable cash generation supports capex, debt service, and REIT management fees without immediate reliance on external financing across a multi-month horizon.

Stable equity base and improving ROE

A stable equity ratio combined with rising ROE suggests the company is using capital more efficiently while maintaining a balanced asset structure. This structural strength underpins longer-term project financing ability and investor confidence, helping sustain growth initiatives and partnerships over several months.

Negative Factors

Rising leverage

An increasing debt-to-equity trend raises long-term financial risk by heightening interest expense and refinancing needs. For a development-focused firm, higher leverage narrows strategic flexibility, amplifies exposure to rate cycles, and can constrain new project investment or require asset sales to stabilize the balance sheet over the medium term.

Slowing revenue growth

A recent slowdown in revenue growth suggests the firm may be facing market saturation, competitive pressure, or timing mismatches in property sales and leasing. Persistently weaker top-line growth limits the runway for profit expansion, reduces incremental margin benefits, and pressures long-term cash flow visibility for developers and asset managers.

Volatile free cash flow

Material swings in free cash flow undermine planning for capex, distributions, and debt service. For a company investing in multi-year development and infrastructure projects, FCF volatility increases reliance on external funding or asset liquidation during downturns and raises uncertainty about sustainable returns and capital allocation over coming quarters.

Jimoto Holdings, Inc. Business Overview & Revenue Model

Company Description

Jimoto Holdings, Inc. provides various banking and financial products and services. The company offers consulting, merger and acquisition, business succession, recruitment, and venture capital services. It also engages in the leasing, credit card, and clerical and consignment work businesses, as well as development, maintenance, and operation of computer systems. The company was incorporated in 2012 and is headquartered in Sendai, Japan. Jimoto Holdings, Inc. operates as a subsidiary of The Resolution and Collection Corporation.

How the Company Makes Money

Jimoto Holdings generates revenue through multiple channels, primarily from real estate development and management fees. The company earns income by developing residential and commercial properties, which are then sold or leased to tenants. Additionally, Jimoto receives management fees from its REITs and property management services, which contribute to its recurring revenue model. Strategic partnerships with local governments and other stakeholders in urban development projects also serve as a significant revenue source, allowing the company to leverage public-private collaborations for funding and resource sharing. Furthermore, Jimoto's commitment to sustainable development attracts investment and enhances its market positioning, leading to increased profitability.

Jimoto Holdings, Inc. Financial Statement Overview

Summary

Mixed fundamentals: strong gross margin and improving EBIT/EBITDA efficiency, but revenue growth has recently declined and net margins have been inconsistent. Balance sheet is generally stable, though rising leverage is a risk; cash generation is solid versus net income but free cash flow remains volatile.

Income Statement

Jimoto Holdings, Inc. has shown fluctuating revenue trends with a recent decline in revenue growth rate. The gross profit margin remains strong, but net profit margins have been inconsistent, indicating potential challenges in cost management or revenue generation. The company has seen improvements in EBIT and EBITDA margins in the latest period, suggesting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating higher leverage, which could pose risks if not managed properly. However, the return on equity has improved recently, reflecting better profitability. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Jimoto Holdings, Inc. has experienced significant fluctuations in free cash flow growth, with recent improvements. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests potential volatility in cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.41B	34.33B	34.22B	33.86B	36.70B	40.30B
Gross Profit	34.41B	32.48B	33.95B	33.63B	36.41B	39.91B
EBITDA	3.47B	3.61B	-22.02B	-3.62B	5.63B	-1.18B
Net Income	1.76B	1.56B	-23.46B	-7.08B	2.58B	-3.18B
Balance Sheet
Total Assets	2.58T	2.48T	2.68T	2.66T	2.70T	2.66T
Cash, Cash Equivalents and Short-Term Investments	0.00	168.16B	358.62B	222.27B	224.83B	203.94B
Total Debt	108.46B	82.93B	128.76B	68.92B	82.99B	50.90B
Total Liabilities	2.50T	2.39T	2.60T	2.58T	2.60T	2.55T
Stockholders Equity	84.10B	82.47B	83.39B	77.50B	100.67B	116.20B
Cash Flow
Free Cash Flow	0.00	29.99B	0.00	-21.38B	27.98B	95.03B
Operating Cash Flow	0.00	30.42B	0.00	-19.97B	28.96B	96.88B
Investing Cash Flow	0.00	-6.87B	129.91B	19.55B	-7.98B	-84.95B
Financing Cash Flow	0.00	-213.89B	19.64B	-656.00M	-698.00M	2.69B

Jimoto Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 434.00
• 50DMA: Negative
• 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:7161, the sentiment is Negative. The current price of 434 is below the 20-day moving average (MA) of 534.75, below the 50-day MA of 512.72, and above the 200-day MA of 419.49, indicating a neutral trend. The MACD of -8.65 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 27.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7161.

Jimoto Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8349	72 Outperform	¥13.87B	9.31	―	3.58%	13.77%	19.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8365	66 Neutral	¥12.48B	21.28	―	2.68%	5.57%	-23.26%
8563	66 Neutral	¥12.72B	7.04	―	3.74%	5.91%	5.03%
8383	64 Neutral	¥16.22B	4.33	―	3.30%	11.93%	36.32%
7161	63 Neutral	¥13.08B	2.96	―	1.24%	5.92%	―
8562	53 Neutral	¥12.76B	8.11	―	1.89%	8.11%	68.98%