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JSP Corporation (JP:7942)
:7942
Japanese Market

JSP Corporation (7942) AI Stock Analysis

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JP:7942

JSP Corporation

(7942)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
¥2,628.00
▲(11.31% Upside)
JSP Corporation's stock is supported by strong technical indicators and a reasonable valuation, making it attractive for investors. However, financial performance challenges, particularly in revenue growth and cash flow generation, pose risks. The stock's bullish momentum is a significant positive, but potential overbought conditions should be monitored.
Positive Factors
Strong Balance Sheet
A low debt-to-equity ratio indicates conservative leverage, providing JSP Corporation with financial flexibility and stability, which is crucial for navigating economic fluctuations and investing in growth opportunities.
Efficient Production Processes
A strong gross profit margin reflects efficient production processes, allowing JSP Corporation to maintain cost advantages and competitive pricing, which supports long-term profitability and market competitiveness.
Diverse Revenue Streams
JSP's diverse revenue streams across key sectors reduce dependency on any single market, enhancing resilience against sector-specific downturns and supporting stable long-term growth.
Negative Factors
Declining Revenue Growth
A decline in revenue growth suggests challenges in maintaining sales momentum, which could impact JSP's ability to invest in new opportunities and sustain competitive positioning over time.
Cash Flow Challenges
Negative free cash flow growth indicates difficulties in converting profits into cash, potentially limiting JSP's ability to fund operations, pay down debt, or invest in growth initiatives.
Low Net Profit Margin
A low net profit margin suggests limited profitability after expenses, which could constrain JSP's ability to reinvest in the business and improve shareholder returns in the long term.

JSP Corporation (7942) vs. iShares MSCI Japan ETF (EWJ)

JSP Corporation Business Overview & Revenue Model

Company DescriptionJSP Corporation manufactures and sells expanded polymers worldwide. The company offers materials products, such as ARPRO, an impact energy management material used in automotive applications, multi-use transport packaging, HVAC housings, and others; STYRODIA used in various applications comprising packaging for consumer electronics, hot and cold food containers, construction insulation, and within civil engineering materials; and FOAMCORE used in prefabricated bathrooms and automotive components. It also provides sheet and board products under the MIRAMAT, CAPLON, P-BOARD, STYRENE PAPER, MIRABOARD, and MIRAFOAM names for advertising boards, construction, food packaging, and industrial packaging markets. The company was incorporated in 1962 and is headquartered in Tokyo, Japan. JSP Corporation is a subsidiary of Mitsubishi Gas Chemical Company, Inc.
How the Company Makes MoneyJSP Corporation generates revenue through the sale of its EPS products and related materials, serving key sectors such as construction, packaging, and automotive. The company has established a robust revenue model based on direct sales to manufacturers and distributors, along with strategic partnerships that enhance its market reach. Significant revenue streams include custom packaging solutions and high-performance insulation products. Additionally, JSP benefits from economies of scale in production and has leveraged its expertise to develop innovative products that meet industry-specific requirements, further solidifying its earnings. Collaborations with major construction firms and automotive manufacturers also contribute to consistent revenue generation, as these sectors demand high-quality materials for sustainable building and vehicle design.

JSP Corporation Financial Statement Overview

Summary
JSP Corporation shows a stable financial position with low leverage but faces challenges in profitability and cash flow generation. Declining revenue and profit margins, coupled with negative free cash flow, suggest potential risks that need addressing to sustain long-term growth.
Income Statement
65
Positive
JSP Corporation's income statement shows a mixed performance. The gross profit margin is stable around 25-26%, indicating consistent cost management. However, the net profit margin has decreased to 3.59% in the TTM, reflecting reduced profitability. Revenue growth has turned negative in the TTM, a concerning trend after previous periods of growth. The EBIT and EBITDA margins have also declined, suggesting pressure on operating efficiency.
Balance Sheet
70
Positive
The balance sheet is relatively strong with a low debt-to-equity ratio of 0.24, indicating prudent leverage management. Return on equity has decreased to 5.11% in the TTM, showing reduced efficiency in generating profits from equity. The equity ratio remains healthy, suggesting a stable financial structure.
Cash Flow
55
Neutral
Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -131.56% in the TTM, indicating cash flow issues. The operating cash flow to net income ratio is 0.26, suggesting moderate cash generation from operations. The negative free cash flow to net income ratio highlights potential liquidity concerns.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue141.17B142.25B135.05B131.71B114.13B102.67B
Gross Profit36.58B36.53B35.25B29.09B29.06B28.73B
EBITDA14.54B15.27B16.62B10.82B11.09B10.95B
Net Income5.35B5.07B6.39B2.53B2.89B3.02B
Balance Sheet
Total Assets154.93B153.94B151.60B144.53B134.53B129.05B
Cash, Cash Equivalents and Short-Term Investments16.86B17.46B19.45B18.13B16.19B17.67B
Total Debt24.09B24.53B24.63B24.51B20.71B21.27B
Total Liabilities49.68B48.08B51.54B48.41B44.30B43.49B
Stockholders Equity100.53B101.03B95.28B91.71B85.99B82.49B
Cash Flow
Free Cash Flow1.08B712.00M8.89B525.00M314.00M6.54B
Operating Cash Flow10.76B8.90B15.66B8.72B5.97B12.21B
Investing Cash Flow-7.80B-8.61B-8.06B-6.48B-5.89B-5.17B
Financing Cash Flow-1.49B-3.83B-8.45B1.02B-2.56B-2.27B

JSP Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2361.00
Price Trends
50DMA
2080.28
Positive
100DMA
1987.84
Positive
200DMA
1930.71
Positive
Market Momentum
MACD
80.01
Positive
RSI
74.20
Negative
STOCH
62.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7942, the sentiment is Positive. The current price of 2361 is above the 20-day moving average (MA) of 2303.95, above the 50-day MA of 2080.28, and above the 200-day MA of 1930.71, indicating a bullish trend. The MACD of 80.01 indicates Positive momentum. The RSI at 74.20 is Negative, neither overbought nor oversold. The STOCH value of 62.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7942.

JSP Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥74.08B12.296.71%2.85%-9.13%
78
Outperform
¥11.31B13.074.60%4.38%-12.68%
78
Outperform
¥88.72B12.517.53%3.01%5.44%45.99%
77
Outperform
¥168.09B10.5310.46%2.37%4.56%49.23%
74
Outperform
¥69.93B11.493.41%0.83%-9.16%
68
Neutral
¥55.14B7.503.57%4.40%47.13%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7942
JSP Corporation
2,361.00
320.76
15.72%
JP:7917
Fujimori Kogyo Co
1,163.00
161.40
16.11%
JP:7864
Fuji Seal International
3,080.00
626.80
25.55%
JP:3943
Ohishi Sangyo Co., Ltd.
1,326.00
369.85
38.68%
JP:3946
Tomoku Co., Ltd.
3,380.00
1,285.43
61.37%
JP:3950
Pack Corporation
1,271.00
129.97
11.39%

JSP Corporation Corporate Events

JSP Corporation Reports Mixed Financial Results for H1 2025
Nov 11, 2025

JSP Corporation reported a slight decline in net sales and operating profit for the six months ending September 30, 2025, compared to the previous year. Despite this, the company saw an increase in profit attributable to owners, indicating a positive shift in profitability. The company’s financial position remains stable, with a slight decrease in equity-to-asset ratio. The forecast for the fiscal year ending March 31, 2026, suggests a minor decrease in net sales and profits, reflecting cautious expectations in the current market environment.

JSP Corporation Reports Slight Decline in Financial Performance
Oct 31, 2025

JSP Corporation reported a slight decline in its financial performance for the six months ending September 30, 2025, with net sales and profits showing a decrease compared to the previous year. Despite this, the company maintained its dividend forecast and showed stability in its financial position, with a strong equity-to-asset ratio. The announcement indicates a cautious outlook for the fiscal year ending March 31, 2026, with slight declines expected in net sales and profits, reflecting challenges in the market environment.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 11, 2025