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Jerash Holdings (JRSH)
:JRSH
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Jerash Holdings (US)
(NASDAQ:JRSH)
Rating:66Neutral
Price Target:
$3.50
▲(6.38%Upside)
Jerash Holdings (US) (JRSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.66M
Dividend Yield6.1%
Average Volume (3M)56.55K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth24.43%
EPS Growth57.78%
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength61
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.01
Shares Outstanding12,699,940
10 Day Avg. Volume24,260
30 Day Avg. Volume56,554
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)0.65
Price to Sales (P/S)0.00
P/FCF Ratio-59.63
Enterprise Value/Market Cap0.66
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit1.24
Enterprise Value/Ebitda3.39
Forecast
1Y Price Target
$4.50Price Target Upside36.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Jerash Holdings (US) Business Overview & Revenue Model
Company DescriptionJerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and readymade sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.
How the Company Makes MoneyJerash Holdings makes money by manufacturing and exporting garments to various global apparel brands. The company's revenue model is centered on producing customized apparel products, which are then sold to its clients. These clients, often large and well-known brands, place bulk orders for clothing items, providing a stable revenue stream for Jerash Holdings. Additionally, the company benefits from its strategic location and cost-efficient production processes, which enhance its competitive edge in the apparel manufacturing industry.
Jerash Holdings (US) Earnings Call Summary
Earnings Call Date:Jun 23, 2025
(Q3-2025)
| % Change Since: -1.79%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted substantial revenue growth and successful expansion plans, indicating strong demand and full bookings. However, the company faced significant challenges with shipping delays, increased costs, and a high tax rate, leading to minimal net income for the quarter.Q3-2025 Updates
Positive Updates
Revenue Growth
Revenue for the fiscal 2025 third quarter increased 28.6% to $35.4 million from $27.5 million for the same quarter last year.
Operating Income Increase
Operating income increased 88.3% to $708,000 in the fiscal 2025 third quarter from $376,000 in the same quarter last year.
Expansion Plans
Expansion of existing manufacturing facilities underway, expected to increase capacity by 15% by June. Additionally, planning further expansion in Al-Hasa to increase production capacity by another 5%-10% by the end of 2025.
High Demand and Full Bookings
Factories are fully booked through August with increasing orders from global brand customers, supported by the tariff-free advantage of exporting from Jordan.
Negative Updates
Shipping Delays
Sales impacted by congestion at Israel Haifa Port due to geopolitical turmoil, causing delays in shipments valued at approximately $6 million.
Increased Costs
Higher logistics costs due to geopolitical turmoil, with gross margin decreasing from 16.2% to 15.2% compared to the previous year.
High Effective Tax Rate
Income tax expenses for the fiscal 2025 third quarter increased to $450,000 with an effective tax rate of 98.6% compared to 14.2% in the same period of fiscal 2024.
Minimal Net Income
Net income was only $6,000 in the fiscal 2025 third quarter, compared to $232,000 in the same quarter last year.
Company Guidance
During the fiscal 2025 third-quarter call for Jerash Holdings, several key metrics and guidance were provided. The company reported a 28.6% increase in revenue to $35.4 million, despite facing logistical challenges due to geopolitical issues, which delayed approximately $6 million worth of shipments. The gross profit increased by 20.6% to $5.4 million, although the gross margin declined to 15.2% from 16.2% in the previous year, primarily due to increased logistics costs. Operating income rose by 88.3% to $708,000, while net income was $6,000, compared to $232,000 the previous year. The company is also expanding its manufacturing capacity by 15% by June 2025 and an additional 5-10% by the end of the calendar year. Looking ahead, Jerash Holdings expects fourth-quarter revenue to grow by 50-53% compared to the prior year, with a gross margin goal of approximately 15-16%. The company also announced a regular quarterly dividend of $0.05 per share, payable on February 25, 2025.Jerash Holdings (US) Financial Statement Overview
Summary
Jerash Holdings exhibits strong revenue growth and a stable balance sheet with low leverage. However, challenges with profitability due to negative net profit margin and inconsistent free cash flow growth temper the overall financial performance.Income Statement
Jerash Holdings shows a mixed income statement performance. The company experienced a negative net profit margin in the most recent year, indicating profitability challenges. Revenue has grown significantly over the past few years, but recent profitability metrics such as EBIT and EBITDA margins are under pressure. However, the long-term revenue growth trajectory looks positive, which is a strength.65
Positive
Balance Sheet
The balance sheet of Jerash Holdings reflects a stable financial position with a strong equity base. The debt-to-equity ratio is low, indicating low leverage, and the equity ratio remains robust, showcasing a solid capital structure. Return on equity has been inconsistent, which may indicate potential inefficiencies in generating returns on shareholders' equity.78
Positive
Cash Flow
Cash flow analysis reveals a mixed picture. Operating cash flow has been generally positive, but free cash flow has shown volatility. The company's ability to convert operating cash flow into net income improved significantly in the latest year. However, the inconsistency in free cash flow growth raises some concerns about cash generation stability.70
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 145.81B | 117.19M | 138.06M | 143.35M | 90.21M |
| Gross Profit | 22.32B | 16.90M | 21.79M | 27.33M | 16.00M |
| EBITDA | 1.45B | 3.13M | 8.27M | 13.44M | 7.94M |
| Net Income | -848.37M | -2.01M | 2.42M | 7.92M | 4.15M |
Balance Sheet | |||||
| Total Assets | 82.98B | 80.25M | 83.72M | 85.31M | 73.25M |
| Cash, Cash Equivalents and Short-Term Investments | 13.35B | 12.43M | 17.80M | 25.68M | 21.13M |
| Total Debt | 627.23M | 989.10K | 768.75K | 1.61M | 1.95M |
| Total Liabilities | 20.11B | 15.81M | 15.49M | 16.01M | 16.56M |
| Stockholders Equity | 62.82B | 64.39M | 68.23M | 69.30M | 56.39M |
Cash Flow | |||||
| Free Cash Flow | 413.52M | -2.36M | 5.00M | 3.91M | -2.39M |
| Operating Cash Flow | 1.36B | 2.48M | 10.81M | 8.96M | -1.50M |
| Investing Cash Flow | -2.37B | -5.14M | -13.78M | -8.67M | -894.26K |
| Financing Cash Flow | 2.05B | -2.43M | -3.95M | 3.29M | -1.65M |
Jerash Holdings (US) Technical Analysis
Positive
3.29
Price Trends
3.19
Positive
3.27
Positive
3.21
Positive
Market Momentum
0.03
Positive
53.46
Neutral
63.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JRSH, the sentiment is Positive. The current price of 3.29 is above the 20-day moving average (MA) of 3.26, above the 50-day MA of 3.19, and above the 200-day MA of 3.21, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JRSH.
Jerash Holdings (US) Risk Analysis
Jerash Holdings (US) disclosed 38 risk factors in its most recent earnings report. Jerash Holdings (US) reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We have entered into joint ventures with third parties, and we may continue to do so in the future. This may subject us to various risks, including limited decision-making authority, reliance on our joint venture partners' financial condition, the risk of disputes with our joint venture partners, and the risk of failing to achieve profitability through such business. Q1, 2024
2.
We incur and will continue to incur increased costs and demands upon management as a result of being a public company. Q1, 2024
3.
A natural disaster, catastrophe, pandemic, or other unexpected events could adversely affect our financial conditions and business operations. Q1, 2024
Jerash Holdings (US) Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $41.66M | ― | -1.33% | 6.10% | 24.43% | 57.78% | |
64 Neutral | kr10.72B | 16.22 | 7.99% | 8.80% | 2.00% | 4.90% | |
55 Neutral | $90.89M | ― | -15.73% | ― | 2.51% | 32.95% | |
55 Neutral | $90.89M | ― | -15.73% | ― | 2.51% | 32.95% | |
53 Neutral | $56.77M | ― | -28.56% | ― | -5.37% | -37.39% | |
53 Neutral | $56.77M | ― | -28.56% | ― | -5.37% | -37.39% | |
47 Neutral | $136.06M | ― | -17.61% | 0.86% | 34.28% | -495.11% | |
47 Neutral | $136.06M | ― | -17.61% | 0.86% | 34.28% | -495.11% | |
45 Neutral | $19.01M | 6.22 | -63.56% | ― | 1.46% | -191.66% | |
45 Neutral | $19.01M | 6.22 | -63.56% | ― | 1.46% | -191.66% | |
39 Underperform | $3.86M | ― | -51.41% | ― | -46.67% | 26.45% | |
39 Underperform | $3.86M | ― | -51.41% | ― | -46.67% | 26.45% |
* Consumer Cyclical Sector Average
Performance Comparison
JRSH
Jerash Holdings (US)
3.29
0.54
19.64%
LAKE
Lakeland Industries
14.56
-7.56
-34.18%
LAKE
Lakeland Industries
14.56
-7.56
-34.18%
UFI
Unifi
4.89
-0.79
-13.91%
UFI
Unifi
4.89
-0.79
-13.91%
VNCE
Vince Holding
1.54
0.21
15.79%
VNCE
Vince Holding
1.54
0.21
15.79%
CULP
Culp
4.66
-0.20
-4.12%
CULP
Culp
4.66
-0.20
-4.12%
XELB
XCel Brands
1.58
-4.92
-75.69%
Jerash Holdings (US) Corporate Events
M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
Jerash Holdings Ends Joint Venture with Eratex
Negative
Jun 20, 2025
Jerash Holdings (US), Inc. announced the termination of its joint venture with P. T. Eratex (Hong Kong) Limited, which was established in March 2023. The decision to dissolve the joint venture, J&B International Limited, was made during a shareholders’ meeting on June 16, 2025, with completion expected by April 2027, impacting the company’s operational strategy and market presence.
The most recent analyst rating on (JRSH) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Jerash Holdings (US) stock, see the JRSH Stock Forecast page.
Dividends
Jerash Holdings Declares Quarterly Dividend Announcement
Positive
May 20, 2025
On May 20, 2025, Jerash Holdings (US), Inc. announced that its board of directors declared a regular quarterly dividend of $0.05 per share of common stock, payable on or about June 6, 2025, to stockholders of record as of May 30, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.
The most recent analyst rating on (JRSH) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Jerash Holdings (US) stock, see the JRSH Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.