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

• Market Cap: ¥42.96B
• Dividend Yield: 3.78%
• Average Volume (3M): 34.80K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.57
• Revenue Growth: 1.90%
• EPS Growth: -6.18%
• Country: JP
• Employees: 3,368
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 55.96
• 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: ¥1,605.00 ▲(18.71% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Balance Sheet Strength

A solid equity ratio (28.52%) and conservative debt-to-equity (0.51) give JK Holdings financial flexibility. This capital structure lowers refinancing risk and supports investment or payouts, helping the firm absorb shocks and pursue strategic moves over the next several months.

Stable Profitability

Modest revenue growth coupled with a positive net profit margin indicates the company consistently generates earnings. While margins are thin, sustained profitability supports operational continuity, dividend capacity and measured reinvestment, underpinning medium-term stability.

Operating Cash Conversion

An OCF-to-net-income ratio of 1.20 shows earnings largely convert into cash, evidencing operational cash generation. That conversion capability supports working capital, interest coverage and near-term capex needs, providing resilience despite weaker free cash flow trends.

Negative Factors

Free Cash Flow Weakness

A notable drop in free cash flow and an FCF/net income ratio of 0.79 constrain the company's ability to fund investments, reduce debt, or sustain dividends from internal cash. Over several months this limits strategic flexibility and increases reliance on external financing if trends persist.

Margin Pressure

Eroding EBIT and EBITDA margins point to rising costs or operational inefficiencies. With a low net profit margin, the business has limited buffer to absorb cost shocks, risking further profit compression and weaker cash generation unless structural cost or pricing improvements are made.

Earnings Contraction

A reported EPS decline of roughly 14% signals weakening core earnings that may reflect margin pressure or one-off items. Continued EPS contraction can erode shareholder returns, reduce reinvestment capacity and weaken confidence in medium-term profitability recovery.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	397.57B	393.26B	388.91B	407.02B	376.12B	343.25B
Gross Profit	46.49B	46.00B	45.33B	46.69B	46.34B	36.18B
EBITDA	10.10B	10.00B	10.25B	12.20B	14.93B	8.05B
Net Income	4.41B	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	171.45B	167.51B	171.65B	161.11B
Stockholders Equity	62.29B	63.61B	61.04B	56.04B	51.67B	43.73B
Cash Flow
Free Cash Flow	0.00	3.39B	19.49B	6.26B	6.39B	6.03B
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: Neutral
• Last Price: 1352.00
• 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:9896, the sentiment is Neutral. The current price of 1352 is below the 20-day moving average (MA) of 1516.55, below the 50-day MA of 1486.68, and above the 200-day MA of 1305.10, indicating a neutral trend. The MACD of 1.55 indicates Positive momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	¥43.78B	7.95	―	1.90%	12.47%	21.98%
8081	78 Outperform	¥44.16B	16.86	―	3.48%	18.42%	51.06%
8157	75 Outperform	¥59.50B	10.50	―	2.82%	-5.63%	52.73%
2676	69 Neutral	¥38.37B	26.04	―	3.89%	9.48%	17.63%
9896	67 Neutral	¥42.96B	6.04	―	3.78%	1.90%	-6.18%
4685	66 Neutral	¥42.07B	9.72	―	2.70%	17.96%	30.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%