J Trust Co., Ltd. (8508) AI Stock Analysis

• Market Cap: ¥53.04B
• Dividend Yield: 3.27%
• Average Volume (3M): 339.00K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.82
• Revenue Growth: -3.40%
• EPS Growth: 129.82%
• Country: JP
• Employees: 3,097
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): 24.46
• Shares Outstanding: 133,515,910
• 10 Day Avg. Volume: 212,360
• 30 Day Avg. Volume: 338,996
• PEG Ratio: -0.17
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 4.65
• 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): 48.8
• Revenue Forecast (FY): ¥135.10B

• Rating: 63 Neutral
• Price Target: ¥460.00 ▲(7.98% Upside)

The overall stock score of 63 reflects a stable financial position with moderate leverage and efficient cost management. However, challenges such as declining revenue growth, profitability, and negative cash flows weigh on the score. The technical analysis indicates a bearish trend, while the valuation suggests the stock may be undervalued with an attractive dividend yield.

Positive Factors

Business Model Strength

The diversified revenue streams from consumer loans, credit cards, and banking operations provide resilience against market fluctuations and support long-term stability.

Efficient Cost Management

A strong gross profit margin indicates effective cost control, which can sustain profitability even amid revenue challenges, supporting long-term financial health.

Moderate Leverage

Moderate leverage with a stable equity ratio suggests a solid capital structure, providing financial flexibility and reducing risk in economic downturns.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in maintaining sales momentum, which could impact long-term market position and profitability if not addressed.

Negative Cash Flows

Persistent negative cash flows can strain liquidity, limiting the company's ability to invest in growth opportunities and meet financial obligations.

Reduced Profitability

A declining net profit margin suggests challenges in converting revenue into profit, which could hinder long-term earnings potential and shareholder value.

J Trust Co., Ltd. Business Overview & Revenue Model

Company Description

J Trust Co., Ltd. (8508) is a diversified financial services company based in Japan, primarily engaged in banking, consumer finance, and investment. The company operates through various subsidiaries that provide a range of services including personal loans, credit cards, and asset management. J Trust Co. aims to cater to both individual and corporate clients, focusing on innovative financial solutions and expanding its market presence across Asia.

How the Company Makes Money

J Trust Co., Ltd. generates revenue through multiple streams. The primary source of income comes from interest and fees associated with consumer loans and credit card services, which contribute significantly to its earnings. Additionally, the company earns revenue from its banking operations, including deposits and loan products offered to both individual and corporate clients. The investment segment also plays a role in revenue generation through fees from asset management services and investment products. Strategic partnerships with financial institutions and technology firms enhance its service offerings and customer reach, thereby contributing to its overall profitability.

J Trust Co., Ltd. Financial Statement Overview

Summary

J Trust Co., Ltd. demonstrates a stable financial position with moderate leverage and efficient cost management. However, declining revenue growth and profitability, coupled with negative cash flows, pose challenges. The company needs to address cash flow issues and improve revenue generation to enhance overall financial health.

Income Statement

The income statement shows mixed results. The gross profit margin is healthy at 36.3% TTM, indicating efficient cost management. However, the net profit margin has decreased to 3.75% TTM, reflecting challenges in converting revenue into profit. Revenue growth has turned negative at -2.96% TTM, indicating a decline in sales compared to the previous period. EBIT and EBITDA margins have improved to 7.06% and 9.52% TTM, respectively, suggesting better operational efficiency.

Balance Sheet

The balance sheet is relatively strong, with a debt-to-equity ratio of 0.49 TTM, indicating moderate leverage. The return on equity has decreased to 3.06% TTM, showing reduced profitability from shareholders' equity. The equity ratio remains stable, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals concerns, with negative operating and free cash flows of -68.04 billion and -69.69 billion TTM, respectively. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow covers net income. However, the negative cash flow growth rate of -5.30% TTM highlights cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.38B	128.17B	114.28B	82.42B	42.33B	32.65B
Gross Profit	45.17B	43.44B	33.13B	36.32B	19.31B	15.00B
EBITDA	11.84B	11.05B	2.09B	9.96B	11.42B	-259.00M
Net Income	4.67B	6.04B	16.31B	12.63B	1.12B	-5.34B
Balance Sheet
Total Assets	1.27T	1.27T	1.21T	1.12T	610.63B	530.46B
Cash, Cash Equivalents and Short-Term Investments	128.82B	127.89B	107.95B	159.39B	74.65B	60.59B
Total Debt	75.08B	69.31B	61.52B	39.75B	26.94B	67.80B
Total Liabilities	1.10T	1.09T	1.05T	983.58B	502.69B	428.00B
Stockholders Equity	151.77B	157.27B	151.59B	117.26B	95.67B	91.60B
Cash Flow
Free Cash Flow	-69.69B	14.09B	-47.89B	48.21B	12.48B	5.66B
Operating Cash Flow	-68.04B	17.12B	-47.08B	49.52B	15.41B	6.81B
Investing Cash Flow	20.07B	-7.40B	-501.00M	-9.12B	-10.00B	-8.42B
Financing Cash Flow	39.41B	2.23B	4.34B	7.29B	-6.13B	-8.64B

J Trust Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 426.00
• 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:8508, the sentiment is Negative. The current price of 426 is above the 20-day moving average (MA) of 425.85, below the 50-day MA of 426.32, and above the 200-day MA of 424.30, indicating a bearish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 39.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8508.

J Trust Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8707	81 Outperform	¥67.27B	8.24	―	5.80%	10.85%	30.77%
8393	71 Outperform	¥79.14B	7.79	―	2.52%	13.93%	54.44%
7148	69 Neutral	¥178.63B	10.31	―	5.97%	20.40%	-9.96%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8789	65 Neutral	¥32.21B	14.30	―	2.00%	4.53%	29.87%
8508	63 Neutral	¥53.04B	12.37	3.37%	3.27%	-3.40%	129.82%
6620	63 Neutral	¥36.25B	149.80	―	―	-33.10%	-49.56%