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Jerash Holdings (US) Inc (JRSH)
NASDAQ:JRSH
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Jerash Holdings (US)
(NASDAQ:JRSH)
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Rating:48Neutral
Price Target:
$3.50
▲(3.24% Upside)
Jerash Holdings' overall stock score is primarily influenced by its financial performance and valuation. The company faces significant challenges in cash flow management and profitability, which are critical concerns. The high P/E ratio suggests overvaluation, though the dividend yield offers some appeal. Technical analysis provides a neutral outlook, with no strong bullish or bearish signals.
Jerash Holdings (US) (JRSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.05M
Dividend Yield5.87%
Average Volume (3M)191.68K
Price to Earnings (P/E)52.4
Beta (1Y)0.34
Revenue Growth17.12%
EPS GrowthN/A
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.03
Shares Outstanding12,699,940
10 Day Avg. Volume393,297
30 Day Avg. Volume191,677
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)0.67
Price to Sales (P/S)0.29
P/FCF Ratio-62.01
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit1.73
Enterprise Value/Ebitda5.85
Forecast
1Y Price Target
$4.50Price Target Upside32.74% 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 generates revenue primarily through the production and sale of private-label apparel to prominent retail partners in the United States and internationally. The company’s revenue model includes long-term contracts with major retailers, which allows for stable and recurring income. Key revenue streams include the sale of manufactured garments, custom designs for clients, and potential licensing agreements. Additionally, Jerash Holdings benefits from operational efficiencies in its Jordanian manufacturing facilities, which provide cost advantages in production. The company’s focus on quality and compliance with international standards also enhances its appeal to retail partners, contributing positively to its earnings.
Jerash Holdings (US) Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there was notable revenue growth and optimistic future projections with increased capacity and customer demand, significant challenges were highlighted due to geopolitical issues impacting shipping, increased costs, and a high effective tax rate, resulting in minimal net income.Q3-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue for fiscal 2025 third quarter increased by 28.6% to $35.4 million from $27.5 million in the same quarter last year, driven by an increase in shipments to major U.S. customers.
Expansion and Capacity Increase
Jerash is expanding two of its existing manufacturing facilities to increase processing capacity by 15% by June and is working on further expansions to add 5% to 10% more capacity by the end of 2025.
Positive Customer Demand Outlook
Factories are fully booked through August, with increasing orders from global brand customers and new inquiries due to tariff advantages.
Expected Revenue Growth in Next Quarter
Revenue for fiscal 2025 fourth quarter is expected to increase by 50% to 53% from the prior year quarter.
Dividend Declaration
Jerash's Board of Directors approved a regular quarterly dividend of $0.05 per share on its common stock.
Negative Updates
Geopolitical Impact and Shipping Delays
Sales were impacted by congestion at Israel's Haifa Port due to geopolitical turmoil, causing long delays in shipments and affecting revenue by approximately $6 million.
Increased Costs and Lower Margins
Gross margin decreased to 15.2% from 16.2% in the same quarter last year, primarily due to higher logistics costs arising from geopolitical turmoil in the Middle East.
High Effective Tax Rate
The effective tax rate was 98.6% for the fiscal 2025 third quarter, significantly higher than 14.2% in the same period in 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 earnings call, Jerash Holdings highlighted several key metrics. The company's revenue increased by 28.6% to $35.4 million compared to the previous year, despite shipping delays caused by congestion at Israel's Haifa Port. These delays impacted approximately $6 million in shipments, leading to additional storage costs of over $100,000. Gross profit rose 20.6% to $5.4 million, although the gross margin decreased slightly to 15.2% due to elevated logistics costs. Operating income saw a significant jump of 88.3% to $708,000. The company also reported a notable increase in income tax expenses, with an effective tax rate of 98.6%, primarily due to prior year adjustments. Looking ahead, Jerash expects revenue growth of 50% to 53% in the fourth quarter, with a gross margin goal of 15% to 16%. They are expanding their production capacity, with a 15% increase expected by June 2025, and further plans to increase capacity by an additional 5% to 10% by the end of the calendar year.Jerash Holdings (US) Financial Statement Overview
Summary
Jerash Holdings faces challenges in revenue growth and cash flow management, despite maintaining a stable balance sheet. The income statement shows low profitability margins, and cash flow issues are evident with negative operating and free cash flows. However, the balance sheet is relatively stable with low leverage.Income Statement
Jerash Holdings shows a mixed performance in its income statement. The TTM data indicates a slight gross profit margin of 16.45% and a very low net profit margin of 0.56%, reflecting challenges in converting revenue into profit. Revenue growth has been negative, indicating a decline in sales. However, the company has managed to maintain a positive EBIT margin of 2.53%, suggesting some operational efficiency.45
Neutral
Balance Sheet
The balance sheet of Jerash Holdings is relatively stable with a low debt-to-equity ratio of 0.85%, indicating conservative leverage. The equity ratio is strong, and the return on equity is modest at 1.29% in the TTM period. The company maintains a solid equity base, which provides a cushion against financial volatility.60
Neutral
Cash Flow
Cash flow analysis reveals significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is high due to prior negative values, but the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 144.51M | 145.81M | 117.19M | 138.06M | 143.35M | 90.21M |
| Gross Profit | 23.77M | 22.32M | 16.90M | 21.79M | 27.33M | 16.00M |
| EBITDA | 7.05M | 5.14M | 3.13M | 8.27M | 13.44M | 7.94M |
| Net Income | 815.52K | -848.37K | -2.01M | 2.42M | 7.92M | 4.15M |
Balance Sheet | ||||||
| Total Assets | 81.74M | 82.98B | 80.25M | 83.72M | 85.31M | 73.25M |
| Cash, Cash Equivalents and Short-Term Investments | 5.80M | 13.35M | 12.43M | 17.80M | 25.68M | 21.13M |
| Total Debt | 5.30M | 5.14M | 989.10K | 768.75K | 1.61M | 1.95M |
| Total Liabilities | 18.95M | 20.11M | 15.81M | 15.49M | 16.01M | 16.56M |
| Stockholders Equity | 62.73M | 62.82M | 64.39M | 68.23M | 69.30M | 56.39M |
Cash Flow | ||||||
| Free Cash Flow | -5.27M | -675.97K | -2.36M | 5.00M | 3.91M | -2.39M |
| Operating Cash Flow | -2.91M | 1.36M | 2.48M | 10.81M | 8.96M | -1.50M |
| Investing Cash Flow | -2.70M | -2.37M | -5.14M | -13.78M | -8.67M | -894.26K |
| Financing Cash Flow | 159.06K | 2.05M | -2.43M | -3.95M | 3.29M | -1.65M |
Jerash Holdings (US) Technical Analysis
Positive
3.39
Price Trends
3.35
Positive
3.31
Positive
3.28
Positive
Market Momentum
0.02
Negative
58.35
Neutral
74.93
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 3.39 is above the 20-day moving average (MA) of 3.31, above the 50-day MA of 3.35, and above the 200-day MA of 3.28, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 74.93 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 39 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 0 New Risks
Jerash Holdings (US) Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | $161.46M | ― | -15.81% | 0.73% | 39.13% | -1186.47% | |
| ― | $36.44M | -2.09 | -32.91% | ― | -0.49% | -1427.68% | |
| ― | $52.06M | -4.29 | -19.05% | ― | -7.91% | 32.31% | |
| ― | $43.05M | 52.39 | 1.30% | 5.87% | 17.12% | ― | |
| ― | $80.97M | -3.87 | -7.94% | ― | -1.87% | 57.41% | |
| ― | $6.06M | -0.13 | -65.44% | ― | -42.62% | -7.75% |
* Consumer Cyclical Sector Average
JRSH
Jerash Holdings (US)
3.39
0.52
18.12%
LAKE
Lakeland Industries
16.87
-1.60
-8.66%
UFI
Unifi
4.41
-1.71
-27.94%
VNCE
Vince Holding
2.81
1.01
56.11%
CULP
Culp
4.13
-1.18
-22.22%
XELB
XCel Brands
1.20
-6.69
-84.79%
Jerash Holdings (US) Corporate Events
Executive/Board ChangesShareholder Meetings
Jerash Holdings Re-elects Directors and Approves Compensation
Neutral
Sep 11, 2025
At the annual meeting held on September 10, 2025, Jerash Holdings (US), Inc. announced the re-election of five directors to serve until the 2026 annual meeting. Additionally, the stockholders approved the compensation for the company’s named executive officers. These decisions reflect the company’s ongoing commitment to stable leadership and transparent executive compensation practices.
The most recent analyst rating on (JRSH) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Jerash Holdings (US) stock, see the JRSH Stock Forecast page.
Business Operations and Strategy
Jerash Holdings Ends Joint Venture with Newtech
Neutral
Aug 21, 2025
On August 20, 2025, Jerash Holdings (US), Inc., through its subsidiary Treasure Success International Limited, and Newtech Textile (HK) Limited decided to deregister their joint venture, Jerash Newtech (Hong Kong) Holdings Limited, as it had not commenced business since its incorporation and had no outstanding liabilities. This decision marks the termination of their joint venture agreement, impacting the company’s strategic operations and market positioning.
The most recent analyst rating on (JRSH) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Jerash Holdings (US) stock, see the JRSH Stock Forecast page.
Jerash Holdings Reports Strong Turnaround in Q1 2026
Aug 13, 2025
Jerash Holdings (US), Inc. is a manufacturer and exporter of custom, ready-made sportswear and outerwear for leading global brands, operating primarily in the apparel industry. The company is known for its strategic collaborations and efficient production planning.
Dividends
Jerash Holdings Declares Quarterly Dividend for August 2025
Positive
Aug 8, 2025
On August 8, 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 August 29, 2025, to stockholders of record as of August 22, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may enhance its attractiveness to investors seeking consistent returns.
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.