Jafco Co (8595) AI Stock Analysis

• Market Cap: €132.42B
• Dividend Yield: 4.61%
• Average Volume (3M): 200.23K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.66
• Revenue Growth: 21.45%
• EPS Growth: 27.61%
• Country: JP
• Employees: 159
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 15.83
• Shares Outstanding: 56,060,000
• 10 Day Avg. Volume: 201,580
• 30 Day Avg. Volume: 200,226
• PEG Ratio: 0.02
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.96
• 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: ―

Jafco Co's strong financial performance and attractive valuation underpin its solid stock score. While technical indicators show positive momentum, potential overbought conditions and past earnings volatility are risks to consider. The company's financial stability and dividend yield make it a promising investment in the asset management sector.

Jafco Co Business Overview & Revenue Model

Company Description

JAFCO Group Co., Ltd. formerly known as JAFCO Co., Ltd. is a private equity and venture capital firm specializing in direct and fund of fund investments. Within direct investments, it invests in incubation, seed, startup, early stage, middle stage, late stage, buyout, business succession, and spin-out related investments. It seeks to invests in many fields such as life science, new drug development, regenerative medicine, medical equipment and healthcare, robotics, electronics, software, IT services, manufacturing, logistics, retail, restaurants, housing, and finance among others. The firm invests in the United States of America, Japan, and Europe. JAFCO Group Co., Ltd. was founded on April 5, 1973 and is based in Tokyo, Japan with additional office in Osaka, Japan.

How the Company Makes Money

Jafco Co. makes money by investing in promising startups and early-stage companies, often taking equity stakes in these businesses. The company generates revenue primarily through capital gains realized from the sale of these equity stakes, either through public offerings or private sales when these companies mature or are acquired. Additionally, Jafco Co. may earn management fees and performance incentives from managing venture capital funds, leveraging its investment expertise and network to maximize returns for its investors. Strategic partnerships with other financial institutions and corporations can also contribute to its revenue streams by providing co-investment opportunities and expanding its investment portfolio.

Jafco Co Financial Statement Overview

Summary

Jafco Co demonstrates strong financial health with robust revenue growth and solid profit margins, though past earnings fluctuations pose risks. The balance sheet reflects low leverage and strong equity, ensuring financial stability, while cash flow indicates effective operational cash generation despite historical volatility.

Income Statement

Jafco Co has demonstrated a strong revenue growth rate of 21.45% in the most recent year, indicating robust business expansion. The gross profit margin stands at 58.10%, and the net profit margin is a healthy 32.26%, showcasing solid profitability. The EBIT margin of 42.16% and EBITDA margin of 42.64% further highlight the company's efficient operations. However, the year 2023 saw significant fluctuations with a negative EBIT, which poses potential risks.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 83.05% and a low debt-to-equity ratio of 0.11, reflecting financial stability and low leverage risk. Return on Equity (ROE) is impressive at 6.78%. Although the company's high equity ratio is a strength, the balance sheet shows some volatility in cash and debt levels over the years.

Cash Flow

Jafco Co's cash flow performance is mixed. The operating cash flow to net income ratio is 1.22, indicating effective cash generation from operations. Despite a significant improvement in free cash flow in the latest year, prior years exhibited negative free cash flows, highlighting potential cash flow management challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	35.22B	29.68B	24.44B	14.07B	27.68B	21.51B
Gross Profit	18.61B	17.25B	12.99B	1.06B	20.91B	13.28B
EBITDA	14.03B	12.66B	8.36B	-3.32B	17.08B	9.16B
Net Income	11.84B	9.58B	7.49B	40.57B	15.08B	38.50B
Balance Sheet
Total Assets	171.17B	169.97B	165.54B	159.85B	233.02B	262.38B
Cash, Cash Equivalents and Short-Term Investments	165.06B	72.49B	67.61B	153.52B	131.81B	176.15B
Total Debt	15.20B	15.18B	15.12B	149.00M	183.00M	115.00M
Total Liabilities	28.85B	28.84B	27.90B	29.10B	35.63B	47.15B
Stockholders Equity	142.32B	141.13B	137.64B	130.75B	197.39B	215.24B
Cash Flow
Free Cash Flow	0.00	11.70B	-9.88B	-7.28B	-13.03B	-119.00M
Operating Cash Flow	0.00	11.72B	-9.57B	-7.25B	-12.96B	8.00M
Investing Cash Flow	0.00	-1.15B	-100.00M	69.64B	748.00M	49.15B
Financing Cash Flow	0.00	-5.45B	6.84B	-46.23B	-43.47B	-13.94B

Jafco Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2426.50
• 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:8595, the sentiment is Neutral. The current price of 2426.5 is below the 20-day moving average (MA) of 2445.35, below the 50-day MA of 2428.50, and above the 200-day MA of 2164.77, indicating a neutral trend. The MACD of 7.93 indicates Positive momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 28.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8595.

Jafco Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8595	71 Outperform	€132.42B	13.84	6.83%	4.61%	21.45%	27.61%
Sector *	61 Neutral	C$14.67B	6.14	20.17%	5.70%	26.93%	-38.21%
SRXXF		$312.38M	12.01	15.96%	4.36%	―	―
TO91		€723.48M	10.62	6.04%	6.45%	―	―
JAN		€29.21M	10.66	6.36%	―	―	―
7347	68 Neutral	¥14.93B	30.53		2.86%	-4.73%	-51.89%
4310	33 Underperform	¥21.42B	117.04		28.00%	24.41%	-108.84%

Jafco Co Corporate Events

JAFCO Assures No Loss Amid alt Inc. Stock Decline

JAFCO Group Co., Ltd. has addressed concerns from shareholders and investors regarding the declining stock price of its portfolio company, alt Inc. Despite the drop, JAFCO has confirmed that it has already recovered more than the book value of its investment in alt Inc., ensuring no investment loss.

JAFCO Group Proposes Amendments to Boost Shareholder Returns

JAFCO Group Co., Ltd. has announced proposed amendments to its Articles of Incorporation to enhance shareholder returns by allowing the distribution of interim dividends. This change, pending approval at the upcoming Annual General Meeting, aims to provide more flexibility in distributing surplus cash, potentially improving shareholder satisfaction and aligning with market practices.

JAFCO Adjusts Conversion Price for 2028 Bonds

JAFCO Group Co., Ltd. has announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due in 2028, reducing the price from ¥2,013.4 to ¥1,963.2. This adjustment follows the approval of a ¥56 per common share year-end dividend and is in line with the terms of the bonds. The change reflects the company’s strategic financial management and could impact stakeholders by potentially altering the attractiveness of the bonds, depending on market conditions.

JAFCO Group Announces Dividend Distribution for Fiscal Year 2025

JAFCO Group Co., Ltd. has announced a resolution to distribute dividends of surplus, with a record date of March 31, 2025. The company will pay out year-end dividends of ¥56 per share, following its policy of a 50% payout ratio or 3% DOE, whichever is greater. This decision reflects JAFCO’s ongoing commitment to shareholder returns and corporate value enhancement.

JAFCO Group Establishes Comprehensive Human Rights Policy

JAFCO Group Co., Ltd. has announced the establishment of a new Human Rights Policy, reinforcing its commitment to sustainability and corporate social responsibility. This policy aims to respect human rights across all stakeholders, support international human rights standards, and enhance corporate value through sustainable practices. The initiative includes human rights due diligence, collaboration with portfolio companies, education and awareness programs, stakeholder dialogue, and transparent information disclosure.

JAFCO Group Announces Executive Board Changes

JAFCO Group Co., Ltd. announced a change in its Board of Directors, with Kenichi Akiba resigning and Toshinori Doi nominated as a new independent director. Doi’s extensive experience in finance and international organizations is expected to enhance the company’s decision-making processes and contribute to its strategic direction.

JAFCO Group Transfers Asian Subsidiary to Focus on Domestic Investments

JAFCO Group Co., Ltd. has decided to transfer all shares of its subsidiary, JAFCO Investment (Asia Pacific) Ltd, to Bee Alternatives Management Ltd. This strategic move aligns with JAFCO’s shift towards focusing on domestic investments and enhancing shareholder returns, which is expected to strengthen its corporate value.

JAFCO Group Announces Share Buyback Plan to Boost Shareholder Value

JAFCO Group Co., Ltd. announced a decision to implement share buybacks, aiming to enhance shareholder returns by allocating excess cash. The buyback plan involves acquiring up to 3,500,000 ordinary shares, representing 6.41% of outstanding shares, with a maximum acquisition price of five billion yen, to be executed via market purchase on the Tokyo Stock Exchange.

JAFCO Group Shifts Focus to Domestic Investments and Enhances Shareholder Returns

JAFCO Group Co., Ltd. has announced a strategic shift to focus on domestic investments in Japan, ceasing new investments in the US and Asia, and transferring its overseas subsidiaries to maximize fund performance. This move aims to enhance corporate value by improving capital efficiency and shareholder returns, with plans for share buybacks and revised dividend policies. The company expects this strategy to leverage its competitive advantage in Japan’s growing market, supported by government initiatives, and to strengthen its role in the venture investment and buyout market.

JAFCO Group Reports Strong Fiscal Year Performance and Increased Dividends

JAFCO Group Co., Ltd. reported a significant increase in its consolidated performance for the fiscal year ending March 31, 2025, compared to the previous year. This growth was primarily driven by capital gains from new IPOs and the sale of unlisted securities, resulting in higher net sales and profits. Additionally, the company announced a revised dividend forecast, planning to pay out 88 yen per share as annual dividends, reflecting a 50% payout ratio, which is higher than the previously forecasted amounts.