Jafco Co (8595) AI Stock Analysis

• Market Cap: ¥127.18B
• Dividend Yield: 5.07%
• Average Volume (3M): 367.30K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.57
• Revenue Growth: -19.64%
• EPS Growth: -31.08%
• Country: JP
• Employees: 159
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -2.93
• Shares Outstanding: 54,250,000
• 10 Day Avg. Volume: 446,980
• 30 Day Avg. Volume: 367,296
• PEG Ratio: 0.43
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 3.81
• P/FCF Ratio: 10.85
• 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: 60 Neutral
• Price Target: ¥2,548.00 ▲(5.79% Upside)

Jafco Co's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and profitability, and a stable balance sheet. However, technical analysis indicates bearish momentum, which poses a risk. The valuation is moderate, with a reasonable P/E ratio and an attractive dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and effective investment strategies, enhancing the company's market position and long-term prospects.

Profit Margins

High profit margins reflect efficient operations and strong pricing power, contributing to sustainable profitability and competitive advantage in the venture capital industry.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to capitalize on investment opportunities and withstand economic fluctuations.

Negative Factors

Cash Flow Volatility

Cash flow volatility can impact the company's ability to fund new investments and operations, posing risks to long-term financial health and growth potential.

Earnings Fluctuations

Earnings fluctuations can undermine investor confidence and complicate financial planning, potentially affecting the company's ability to attract capital and sustain growth.

Cash Flow Management

Inconsistent cash flow management may hinder the company's capacity to support its portfolio companies and pursue new investment opportunities, affecting long-term growth.

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 generates revenue primarily through its investments in private equity and venture capital. The company earns management fees from managing funds and receives a share of the profits upon the successful exit of its investments, known as carried interest. Key revenue streams include capital gains from the appreciation of its equity stakes in portfolio companies, dividends from investments, and advisory fees for strategic consulting services. Additionally, partnerships with institutional investors and co-investments with other venture capital firms enhance its investment capacity and contribute to its overall earnings.

Jafco Co Financial Statement Overview

Summary

Jafco Co demonstrates strong financial health with impressive growth and profitability. The income statement shows robust revenue and profit margins, though past fluctuations in earnings could pose risks. The balance sheet reflects low leverage and strong equity, ensuring financial stability. The cash flow statement 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.76B	29.68B	24.44B	14.07B	27.68B	21.51B
Gross Profit	17.69B	17.68B	12.99B	1.07B	20.91B	13.28B
EBITDA	12.59B	13.35B	8.36B	61.58B	18.75B	56.66B
Net Income	10.54B	9.58B	7.49B	40.57B	15.08B	38.50B
Balance Sheet
Total Assets	162.28B	169.97B	165.54B	159.85B	233.02B	262.38B
Cash, Cash Equivalents and Short-Term Investments	68.66B	163.87B	67.61B	69.48B	52.60B	107.52B
Total Debt	15.18B	15.18B	15.12B	149.00M	183.00M	115.00M
Total Liabilities	25.24B	28.84B	27.90B	29.10B	35.63B	47.15B
Stockholders Equity	137.04B	141.13B	137.64B	130.75B	197.39B	215.24B
Cash Flow
Free Cash Flow	11.70B	10.42B	-9.88B	-7.28B	-13.03B	-119.00M
Operating Cash Flow	11.72B	10.44B	-9.57B	-7.25B	-12.96B	8.00M
Investing Cash Flow	134.00M	134.00M	-100.00M	69.64B	748.00M	49.15B
Financing Cash Flow	-5.45B	-5.45B	6.84B	-46.23B	-43.47B	-13.94B

Jafco Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2408.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8595, the sentiment is Positive. The current price of 2408.5 is above the 20-day moving average (MA) of 2383.48, above the 50-day MA of 2406.33, and above the 200-day MA of 2360.87, indicating a bullish trend. The MACD of -3.77 indicates Negative momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8595.

Jafco Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8739	74 Outperform	¥49.93B	10.80	17.21%	4.27%	7.60%	7.20%
8616	72 Outperform	¥168.64B	13.65	6.79%	5.60%	3.10%	17.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	62 Neutral	¥16.91B	246.76	―	2.52%	1.35%	-91.61%
8595	60 Neutral	¥127.18B	19.33	5.11%	5.07%	-19.64%	-31.08%
8518	46 Neutral	¥4.70B	16.53	4.15%	―	-6.60%	―
4310	33 Underperform	¥24.02B	20.42	―	18.63%	21.38%	―

Jafco Co Corporate Events

JAFCO Completes Share Transfer of Asia Pacific Subsidiary

JAFCO Group Co., Ltd. has completed the transfer of all shares of JAFCO Investment (Asia Pacific) Ltd to Bee Alternatives Management Ltd as of October 31, 2025. This strategic move aligns with JAFCO’s focus on domestic investments and is expected to generate significant income from the sale of shares, impacting its financial statements positively. Additionally, JAFCO America Ventures Inc. is undergoing transfer procedures, expected to conclude by the end of the fiscal year. The company anticipates improved investment performance and continued collaboration with JIAP under its new management.

JAFCO Announces Treasury Share Cancellation Post Buyback

JAFCO Group Co., Ltd. has completed a share buyback and announced the cancellation of 1,810,000 treasury shares, representing 3.2% of its total outstanding shares before cancellation. This move, effective November 6, 2025, aims to reduce the number of treasury shares to 3% of the total outstanding shares, potentially enhancing shareholder value and optimizing the company’s capital structure.

JAFCO Group Completes Share Buyback Program

JAFCO Group Co., Ltd. has completed a share buyback program, acquiring 252,000 ordinary shares for a total of 638,244,496 yen, as part of a resolution made by the Board of Directors in April 2025. This move is part of a broader strategy to optimize capital structure and potentially enhance shareholder value, reflecting the company’s commitment to financial management and market positioning.

JAFCO Adjusts Conversion Price for 2028 Bonds

JAFCO Group Co., Ltd. announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due 2028, reducing it from ¥1,963.2 to ¥1,912.0, effective October 1, 2025. This adjustment follows the approval of interim dividends and aligns with the terms of the bonds, impacting the conditions under which conversion rights can be exercised and the company’s ability to acquire remaining bonds before maturity.

JAFCO Group Announces Increased Interim Dividend for Fiscal Year 2026

JAFCO Group Co., Ltd. announced an interim dividend of ¥66.5 per share for the fiscal year ending March 31, 2026, as part of its policy to return profits to shareholders. This decision reflects an increase from the previous year’s interim dividend and aligns with the company’s new policy of distributing the greater of either a 6% DOE or a 50% payout ratio, indicating a commitment to enhancing shareholder returns.

JAFCO Group Reports Decline in Financial Performance but Increases Dividends

JAFCO Group Co., Ltd. reported a significant decline in its financial performance for the six months ended September 30, 2025, with net sales and profits showing a marked decrease compared to the previous year. Despite the downturn, the company announced a substantial increase in dividends for the fiscal year ending March 31, 2026, reflecting a commitment to shareholder returns amidst fluctuating market conditions.