JSP Corporation (7942) AI Stock Analysis

• Market Cap: ¥54.07B
• Dividend Yield: 4.41%
• Average Volume (3M): 33.07K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.92
• Revenue Growth: 5.33%
• EPS Growth: -12.21%
• Country: JP
• Employees: 3,053
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Packaging & Containers
• EPS (TTM): 6.08
• Shares Outstanding: 31,413,471
• 10 Day Avg. Volume: 31,420
• 30 Day Avg. Volume: 33,073
• PEG Ratio: -1.46
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 88.06
• 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

• Rating: 71 Outperform
• Price Target: ¥2,027.00 ▲(11.74%Upside)

JSP Corporation's stock score is primarily supported by its attractive valuation and strong balance sheet, despite the challenges in profitability margins and cash flow generation. Technical analysis suggests a current bearish trend, but the stock appears undervalued with a high dividend yield, offering potential upside if operational efficiencies are improved.

JSP Corporation Business Overview & Revenue Model

Company Description

JSP Corporation (7942) is a leading Japanese company specializing in the production and sale of expanded polymer and plastic products. The company operates within the industrial materials sector, offering a diverse range of products that include expanded polystyrene, polyethylene foams, and other polymer-based materials. These products are widely used in various industries such as automotive, packaging, construction, and consumer goods, where they serve as critical components for insulation, cushioning, and lightweight structural support.

How the Company Makes Money

JSP Corporation generates revenue primarily through the sale of its expanded polymer and plastic products. The company's key revenue streams are driven by its vast product offerings that cater to multiple industries, ensuring a diversified income base. JSP's products, such as ARPRO (expanded polypropylene), are particularly popular in the automotive industry for their lightweight and energy-absorbing properties, contributing significantly to the company's earnings. Additionally, JSP collaborates with a network of distributors and partners globally, enhancing its market reach and sales opportunities. The company's strategic focus on innovation and sustainable materials also plays a crucial role in maintaining its competitive edge and profitability in the market.

JSP Corporation Financial Statement Overview

Summary

JSP Corporation exhibits strong revenue growth and a solid balance sheet with low leverage and high equity coverage. However, profit margins have decreased, and cash flow generation is a concern, suggesting areas for improvement in operational efficiency and cash conversion.

Income Statement

JSP Corporation has demonstrated a consistent increase in total revenue over the years, with a growth rate of 5.34% from 2024 to 2025. While the gross profit margin is relatively stable, net profit margin has decreased from 4.73% in 2024 to 3.56% in 2025, indicating rising costs or reduced pricing power. EBIT and EBITDA margins show a similar trend, suggesting operational efficiencies might need improvement. Overall, while growth is positive, profitability metrics suggest a need for attention.

Balance Sheet

The company's balance sheet is strong, with an increasing stockholders' equity indicating a solid financial foundation. The debt-to-equity ratio remains low at 0.24, suggesting prudent leverage management. ROE, although decreased to 5.01% in 2025, highlights moderate returns on equity. The equity ratio is robust at 65.65%, reflecting a stable asset base funded by equity rather than debt.

Cash Flow

Cash flow analysis reveals a concerning trend with operating cash flow decreasing significantly from 2024 to 2025, impacting the free cash flow, which also declined. The free cash flow to net income ratio is low, indicating potential challenges in converting income into cash flow. While the company has managed capital expenditures well, improvements in operational cash flow generation are needed.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
142.25B	135.05B	131.71B	114.13B	102.67B
	Gross Profit
36.53B	35.25B	29.09B	29.06B	28.73B
	EBIT
6.89B	7.57B	2.96B	4.59B	5.18B
	EBITDA
15.27B	16.62B	10.82B	11.42B	11.79B
	Net Income Common Stockholders
5.07B	6.39B	2.53B	2.89B	3.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.46B	19.45B	18.13B	16.19B	17.67B
	Total Assets
153.94B	151.60B	144.53B	134.53B	129.05B
	Total Debt
24.11B	24.63B	24.51B	20.71B	21.27B
	Net Debt
6.68B	5.31B	6.48B	4.53B	3.87B
	Total Liabilities
48.08B	51.54B	48.41B	44.30B	43.49B
	Stockholders Equity
101.03B	95.28B	91.71B	85.99B	82.49B
Cash Flow		Free Cash Flow
712.00M	8.89B	525.00M	314.00M	6.54B
	Operating Cash Flow
8.90B	15.66B	8.72B	5.97B	12.21B
	Investing Cash Flow
-8.61B	-8.06B	-6.48B	-5.89B	-5.17B
	Financing Cash Flow
-3.83B	-8.45B	1.02B	-2.56B	-2.27B

JSP Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1814.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7942, the sentiment is Negative. The current price of 1814 is below the 20-day moving average (MA) of 1837.35, below the 50-day MA of 1865.20, and below the 200-day MA of 1963.72, indicating a bearish trend. The MACD of -20.73 indicates Negative momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 42.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7942.

JSP Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3950	79 Outperform	¥62.49B	10.64		4.01%	2.76%	-3.98%
3946	74 Outperform	¥45.80B	7.06		3.94%	3.82%	22.44%
7864	73 Outperform	$139.07B	11.29	8.65%	2.99%	8.00%	19.79%
7917	71 Outperform	€70.69B	10.55	7.26%	3.65%	10.71%	45.44%
7942	71 Outperform	¥54.07B	9.38		4.41%	5.33%	-12.21%
3943	69 Neutral	¥10.23B	9.88		3.33%	6.92%	-11.72%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%

JSP Corporation Corporate Events

JSP Corporation Announces Dividend Payment from Surplus

JSP Corporation’s Board of Directors has approved a resolution to pay dividends from surplus, with a record date of March 31, 2025, and a dividend of 40 yen per share. This decision aligns with the company’s policy of maintaining stable dividend payments and enhancing shareholder returns, reflecting a payout ratio of 35% or more of consolidated profit.

JSP Corporation Reports Mixed Financial Results for FY 2025

JSP Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 5.3% increase in net sales to ¥142,250 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with respective decreases of 8.9%, 10.0%, and 20.7%. Despite these challenges, the company increased its annual dividend per share to ¥80.00, reflecting a commitment to shareholder returns. The financial results indicate a mixed performance with growth in sales but pressure on profitability, which could impact its market positioning and stakeholder confidence.

JSP Corporation Reports Fiscal Year 2025 Financial Results

JSP Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 5.3% increase in net sales to ¥142,250 million. However, the company experienced a decline in operating profit by 8.9% and ordinary profit by 10%, with profit attributable to owners of the parent decreasing by 20.7%. Despite these challenges, the company increased its annual dividend per share from ¥65.00 to ¥80.00, reflecting a commitment to returning value to shareholders.