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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:56Neutral
Price Target:
$3.00
▼(-3.23% Downside)
Jerash Holdings' overall stock score is primarily influenced by its strong financial performance, particularly in revenue growth and balance sheet strength. However, the high P/E ratio and bearish technical indicators weigh down the score. The attractive dividend yield provides some support, but the stock's valuation and market momentum present challenges.
Positive Factors
Revenue Growth
Exceptional revenue growth indicates strong market demand and effective business strategies, enhancing long-term prospects.
Balance Sheet Strength
A strong balance sheet with low leverage provides financial stability and flexibility for future investments and growth.
Dividend Commitment
Consistent dividend payments reflect financial health and a commitment to returning value to shareholders, enhancing investor confidence.
Negative Factors
Profitability Margins
Low profitability margins suggest challenges in cost management and pricing power, which could hinder long-term earnings growth.
Cash Flow Challenges
Negative free cash flow can strain liquidity and limit the company's ability to invest in growth opportunities or weather downturns.
Operational Efficiency
Modest operational margins highlight inefficiencies that could impact competitiveness and require strategic improvements.
Jerash Holdings (US) (JRSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.37M
Dividend Yield6.75%
Average Volume (3M)191.68K
Price to Earnings (P/E)65.4
Beta (1Y)0.38
Revenue Growth12.25%
EPS GrowthN/A
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.04
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 Cap1.05
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.01
Forecast
1Y Price Target
$5.00Price Target Upside61.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 through the production and sale of a variety of apparel products, including t-shirts, sweaters, and other garments, primarily under private-label agreements with major retailers. The company's revenue model is centered around contract manufacturing, where it partners with well-known brands and retailers to produce clothing that meets their specific designs and quality standards. Key revenue streams include bulk orders from these partners, which provide a stable income source. Additionally, Jerash Holdings benefits from its strategic geographic location in Jordan, allowing it to leverage lower labor costs while maintaining access to European and North American markets. The company also focuses on maintaining strong relationships with its clients, which helps secure long-term contracts and repeat business, contributing to its overall earnings.
Jerash Holdings (US) Earnings Call Summary
Earnings Call Date:Feb 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
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 demonstrates strong revenue growth and a solid balance sheet with low leverage. However, profitability margins are modest, and cash flow management presents challenges with negative free cash flow. The company shows potential for growth but needs to focus on improving operational efficiency and cash flow generation to enhance financial stability.Income Statement
Jerash Holdings has shown a remarkable revenue growth rate of 29014.996% in the TTM period, indicating a significant expansion. The gross profit margin of 16.45% is stable, but the net profit margin is relatively low at 0.56%, suggesting limited profitability. The EBIT and EBITDA margins are modest at 2.53% and 4.88%, respectively, indicating room for operational efficiency improvements.Balance Sheet
The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.08, reflecting prudent financial management. The return on equity is modest at 1.29%, indicating moderate profitability on shareholders' equity. The equity ratio is healthy, suggesting a solid capital structure with a significant portion of assets financed by equity.Cash Flow
Jerash Holdings has experienced a substantial free cash flow growth rate of 9924.27% in the TTM period, but the free cash flow remains negative, indicating potential liquidity challenges. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. However, the free cash flow to net income ratio is positive, indicating some ability to generate cash relative to net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.07B | 145.81M | 117.19M | 138.06M | 143.35M | 90.21M |
| Gross Profit | 6.31B | 22.32M | 16.90M | 21.79M | 27.33M | 16.00M |
| EBITDA | 2.95B | 5.14M | 3.13M | 8.27M | 13.44M | 7.94M |
| Net Income | 479.46M | -848.37K | -2.01M | 2.42M | 7.92M | 4.15M |
Balance Sheet | ||||||
| Total Assets | 83.34M | 84.95M | 80.25M | 83.72M | 85.31M | 73.25M |
| Cash, Cash Equivalents and Short-Term Investments | 12.00M | 13.35M | 12.43M | 17.80M | 25.68M | 21.84M |
| Total Debt | 5.60M | 5.14M | 989.10K | 768.75K | 1.61M | 1.88M |
| Total Liabilities | 20.49M | 22.08M | 15.81M | 15.49M | 16.01M | 16.86M |
| Stockholders Equity | 62.77M | 62.82M | 64.39M | 68.23M | 69.30M | 56.39M |
Cash Flow | ||||||
| Free Cash Flow | -3.01M | -675.97K | -2.36M | 5.00M | 3.91M | -2.39M |
| Operating Cash Flow | -744.16K | 1.36M | 2.48M | 10.81M | 8.96M | -1.50M |
| Investing Cash Flow | -2.49M | -2.37M | -5.14M | -13.78M | -8.67M | -894.26K |
| Financing Cash Flow | -893.21K | 2.05M | -2.43M | -3.95M | 3.29M | -1.65M |
Jerash Holdings (US) Technical Analysis
Neutral
3.10
Price Trends
3.11
Negative
3.20
Negative
3.16
Negative
Market Momentum
>-0.01
Negative
55.22
Neutral
73.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JRSH, the sentiment is Neutral. The current price of 3.1 is above the 20-day moving average (MA) of 3.03, below the 50-day MA of 3.11, and below the 200-day MA of 3.16, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 73.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $39.37M | 65.40 | 0.99% | 6.75% | 12.25% | ― | |
54 Neutral | $47.76M | -2.42 | -33.24% | ― | 2.58% | -502.04% | |
47 Neutral | $6.10M | -0.16 | -78.27% | ― | -46.66% | 24.23% | |
44 Neutral | $70.32M | -2.86 | -9.61% | ― | -5.26% | 42.84% | |
42 Neutral | $86.98M | -1.98 | -28.97% | 1.35% | 27.42% | -5275.12% | |
41 Neutral | $44.07M | -4.08 | -18.32% | ― | -7.76% | 49.20% |
* Consumer Cyclical Sector Average
JRSH
Jerash Holdings (US)
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Jerash Holdings (US) Corporate Events
Dividends
Jerash Holdings Declares Quarterly Dividend for November 2025
Positive
Nov 7, 2025
On November 7, 2025, Jerash Holdings (US), Inc. announced that its board of directors declared a regular quarterly dividend of $0.05 per share of common stock. This dividend is set to be paid on or about November 26, 2025, to stockholders of record as of November 19, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may influence investor perceptions 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.
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.