JK Holdings Co., Ltd. (9896) AI Stock Analysis

• Market Cap: ¥42.12B
• Dividend Yield: 3.78%
• Average Volume (3M): 34.80K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.53
• Revenue Growth: 1.90%
• EPS Growth: -6.18%
• Country: JP
• Employees: 3,368
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 35.25
• Shares Outstanding: 31,040,016
• 10 Day Avg. Volume: 32,510
• 30 Day Avg. Volume: 34,800
• PEG Ratio: -0.45
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 8.57
• 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: 67 Neutral
• Price Target: ¥1,551.00 ▲(14.72% Upside)

The overall stock score of JK Holdings Co., Ltd. is primarily driven by its stable financial performance and attractive valuation. The company's low P/E ratio and high dividend yield enhance its investment appeal. However, technical indicators suggest short-term bearish momentum, which slightly offsets the positive valuation outlook.

Positive Factors

Diversified business model

JK Holdings' exposure across electronics, automotive components and home appliances reduces reliance on any single cyclical end market. This durable diversification supports steadier revenue, cross-segment scale benefits and resilience to sector-specific downturns over 2–6 months.

Solid balance sheet metrics

A 28.5% equity ratio and 0.51 debt/equity indicate financial flexibility and capacity to fund operations or strategic initiatives without excessive leverage. This buffer supports capex, R&D and partnerships and reduces refinancing risk across medium-term business cycles.

Consistent profitability and slight revenue growth

Modest revenue expansion with positive gross and net margins reflects an ability to generate recurring profits from core operations. Even if margins are not high, sustained profitability underpins dividend capacity, ongoing operations and incremental reinvestment over the medium term.

Negative Factors

Weak free cash flow generation

Declining free cash flow and a FCF/net income ratio below 1.0 signal weaker cash conversion. Over months this constrains capex, M&A, debt reduction and dividend flexibility, forcing reliance on external funding or asset sales to finance growth and sustain payouts.

Eroding operating margins

A decline in EBIT/EBITDA margins points to rising input costs or falling operational efficiency. Persisting margin erosion reduces reinvestment capacity and competitive pricing power, pressuring long-term profitability unless offset by restructuring or productivity gains.

Decline in assets and equity

A shrinking asset and equity base can indicate asset sales, impaired investments or underinvestment in capacity. Over the medium term this may limit revenue growth potential, weaken competitive positioning and constrain the company's ability to pursue strategic initiatives.

JK Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

JK Holdings Co., Ltd., through its subsidiaries, engages in the wholesale, plywood manufacturing and wood processing, franchise, home construction, and other businesses in Japan. The company produces and sells building materials; and sells housing equipment and fixtures, street signs and traffic safety equipment, construction equipment and tools, and medical equipment. It is also involved in the civil engineering construction, interior decor construction, finishing construction, buildings design and administration, forestry, residential land development, warehouse and transport, and casualty insurance agency and life insurance related businesses, as well as sale, exchange, lease, and management of real estate. In addition, the company produces and sells various plywood and structural laminated veneer lumber; and processes and sells building materials, lumber, panels, etc. Further, it develops stores under the House Depot name; operates directly managed offices for custom homes and remodeling/reconstruction of homes; and provides home loans and guarantees. Additionally, the company offers upgrading services, including housing completion guarantee, performance indication system, after service and maintenance, etc. for home purchasers. JK Holdings Co., Ltd. was founded in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JK Holdings generates revenue through several key streams, primarily from the sale of its consumer goods and industrial products. The company leverages its manufacturing capabilities to produce high-demand items, which are then sold through both direct retail channels and partnerships with distributors. Additionally, JK Holdings has established strategic alliances with major retailers and e-commerce platforms to enhance its market reach. Revenue is also bolstered by ongoing investments in research and development, leading to new product innovations that attract a broader customer base. Furthermore, the company benefits from economies of scale in production and distribution, allowing for competitive pricing and increased profit margins.

JK Holdings Co., Ltd. Financial Statement Overview

Summary

JK Holdings Co., Ltd. shows stable financial performance with moderate profitability and healthy equity levels. The income statement reflects slight growth and profitability, while the balance sheet is robust with a good equity ratio. However, concerns arise from the cash flow statement, highlighting challenges in generating free cash flow, which could impact future financial flexibility.

Income Statement

The income statement reflects moderate growth and stable profitability for JK Holdings Co., Ltd. The company experienced a slight revenue growth of 1.12% from the previous year, with a gross profit margin of 12.06% and a net profit margin of 1.09% in the latest fiscal year. However, there's a downward trend in EBIT and EBITDA margins, which could indicate rising costs or operational inefficiencies. Despite this, the company maintains a positive net profit margin, suggesting some level of profitability stability.

Balance Sheet

The balance sheet showcases a solid equity position with an equity ratio of 28.52% and a manageable debt-to-equity ratio of 0.51. Return on equity is modest at 6.73%, indicating adequate return on shareholders' investment. However, the decrease in total assets and equity over the past year suggests some potential for financial strain or strategic divestments. Overall, the balance sheet reflects stability with some cautionary signs regarding asset management.

Cash Flow

Cash flow analysis indicates moderate financial health with a significant decline in free cash flow growth from the previous year. The operating cash flow to net income ratio is 1.20, reflecting a reasonable conversion of net income to cash. However, the free cash flow to net income ratio is notably lower at 0.79, indicating potential challenges in generating free cash from operations. This could impact future investments and debt management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	397.57B	393.26B	388.91B	407.02B	376.12B	343.25B
Gross Profit	47.63B	47.46B	46.54B	47.81B	47.44B	37.34B
EBITDA	10.29B	10.60B	11.40B	14.00B	15.87B	8.15B
Net Income	4.40B	4.28B	5.05B	6.69B	8.91B	2.95B
Balance Sheet
Total Assets	219.00B	222.97B	234.56B	225.41B	224.93B	206.29B
Cash, Cash Equivalents and Short-Term Investments	49.27B	50.70B	56.67B	42.90B	39.38B	36.48B
Total Debt	31.03B	32.23B	37.78B	40.49B	42.55B	44.57B
Total Liabilities	154.59B	157.26B	171.46B	167.51B	171.65B	161.12B
Stockholders Equity	62.29B	63.61B	61.04B	56.03B	51.67B	43.73B
Cash Flow
Free Cash Flow	0.00	3.39B	19.21B	6.25B	6.35B	5.99B
Operating Cash Flow	0.00	5.13B	22.06B	8.72B	8.18B	8.85B
Investing Cash Flow	0.00	-2.45B	-3.83B	721.00M	-1.85B	-2.52B
Financing Cash Flow	0.00	-8.53B	-4.44B	-5.86B	-3.59B	-2.78B

JK Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1352.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9896, the sentiment is Positive. The current price of 1352 is below the 20-day moving average (MA) of 1359.65, above the 50-day MA of 1288.92, and above the 200-day MA of 1199.93, indicating a bullish trend. The MACD of 47.82 indicates Negative momentum. The RSI at 70.46 is Negative, neither overbought nor oversold. The STOCH value of 81.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9896.

JK Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8285	82 Outperform	¥35.22B	11.91	―	1.90%	12.47%	21.98%
8081	78 Outperform	¥45.48B	11.98	―	3.48%	18.42%	51.06%
8070	74 Outperform	¥27.09B	9.07	―	3.66%	-18.88%	42.17%
2676	69 Neutral	¥37.88B	24.08	―	3.89%	9.48%	17.63%
8157	68 Neutral	¥57.04B	11.46	―	2.82%	-5.63%	52.73%
9896	67 Neutral	¥42.12B	9.67	―	3.78%	1.90%	-6.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%