Jerash Holdings (US) (JRSH) AI Stock Analysis

• Market Cap: $40.51M
• Dividend Yield: 6.75%
• Average Volume (3M): 191.68K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.37
• Revenue Growth: 12.25%
• EPS Growth: N/A
• Country: US
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.09
• Shares Outstanding: 12,699,940
• 10 Day Avg. Volume: 393,297
• 30 Day Avg. Volume: 191,677
• PEG Ratio: 0.87
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -62.01
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 4.65
• 1Y Price Target: $5.00
• Price Target Upside: 57.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.08
• Revenue Forecast (FY): $159.70M

• Rating: 50 Neutral
• Price Target: $3.00 ▼(-5.36% Downside)
• Action: Reiterated Date: 02/09/26
• Date: Action: Reiterated 02/09/26

Overall score reflects uneven financial performance: despite a strong low-leverage balance sheet, recent negative operating/free cash flow and volatile profitability cap the rating. Technical indicators are broadly neutral, valuation is pressured by a high P/E (partly offset by the dividend), and corporate events are positive with planned capacity expansion and a continued dividend.

Positive Factors

Low-leverage balance sheet

Jerash maintains a conservative capital structure with low debt and sizable equity relative to assets. This provides a durable financial cushion that supports operating resilience, capacity investment, and continued shareholder distributions while reducing solvency risk during industry cycles.

Planned 40% capacity expansion

Acquiring a ~184k sq ft facility and investing in renovations and equipment to raise capacity ~40% is a structural growth move. It materially increases production scale and flexibility, enabling longer-term revenue growth from new/expanded customer programs once ramped by end of 2026.

Long-standing, diversified customer relationships

Jerash’s contract-manufacturing model with established global brands and a newly added Korean strategic partner provides recurring bulk orders and demand visibility. This client mix supports stable revenue streams and reduces single-customer concentration risk over the medium term.

Negative Factors

Negative operating & free cash flow

Recent TTM cash burn undermines financial flexibility: negative operating and free cash flow constrain the firm’s ability to fund working capital, capex, dividends, or service new debt from internal resources, increasing reliance on external financing during expansion.

Volatile profitability and thin margins

Earnings have swung from strong margins in FY2022 to losses in FY2024–FY2025, with only a slim TTM net margin. This inconsistency limits retained earnings, raises execution risk for scaling operations, and reduces cushion against input-cost shocks in apparel manufacturing.

Significant near-term capex and bank financing

The $3.4M acquisition plus ~$5M renovation commitment and the $2.8M loan increase near-term cash outflows and leverage needs. Given current negative cash flow, these obligations could strain liquidity or require additional external funding if ramp-up or margin gains lag expectations.

Jerash Holdings (US) Business Overview & Revenue Model

Company Description

Jerash 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 Money

Jerash 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) Financial Statement Overview

Summary

Mixed fundamentals: a conservative, low-debt balance sheet supports stability, but profitability has been inconsistent (losses in FY2024–FY2025 with only a small TTM profit) and recent cash generation is weak with negative TTM operating and free cash flow.

Income Statement

Profitability has been inconsistent. After strong results in FY2022 (about 5.5% net margin) and FY2023, the company fell into losses in FY2024 and FY2025 (annual net margin about -0.6%). TTM (Trailing-Twelve-Months) returned to a small profit (about 1.1% net margin), but margins remain thin versus prior peaks, and the reported TTM revenue growth rate is extremely negative, signaling significant top-line volatility and execution risk.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity has stayed low across periods and is minimal in TTM (Trailing-Twelve-Months). Equity is sizable relative to assets, providing a cushion. The main drawback is uneven returns for shareholders—return on equity was strong in FY2022, turned negative in FY2024 and FY2025, and only modestly positive in TTM—reflecting that the solid balance sheet hasn’t consistently translated into stable earnings power.

Cash Flow

Cash generation is volatile and recently weak. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative, which pressures liquidity and reduces financial flexibility. While prior years included periods of strong operating cash flow and positive free cash flow (notably FY2022–FY2023), the more recent shift back to cash burn is a key concern and suggests working-capital swings and/or reduced profitability are weighing on cash conversion.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	152.62M	145.81M	117.19M	138.06M	143.35M	90.21M
Gross Profit	24.55M	22.32M	16.90M	21.79M	27.33M	16.00M
EBITDA	8.04M	5.14M	3.13M	8.27M	13.44M	7.94M
Net Income	1.80M	-848.37K	-2.01M	2.42M	7.92M	4.15M
Balance Sheet
Total Assets	84.21M	84.95M	80.25M	83.72M	85.31M	73.25M
Cash, Cash Equivalents and Short-Term Investments	11.45M	13.35M	12.43M	17.80M	25.68M	21.84M
Total Debt	9.70M	5.14M	989.10K	768.75K	1.61M	1.88M
Total Liabilities	20.56M	22.08M	15.81M	15.49M	16.01M	16.86M
Stockholders Equity	63.59M	62.82M	64.39M	68.23M	69.30M	56.39M
Cash Flow
Free Cash Flow	-3.45M	-675.97K	-2.36M	5.00M	3.91M	-2.39M
Operating Cash Flow	-1.55M	1.36M	2.48M	10.81M	8.96M	-1.50M
Investing Cash Flow	-2.07M	-2.37M	-5.14M	-13.78M	-8.67M	-894.26K
Financing Cash Flow	1.85M	2.05M	-2.43M	-3.95M	3.29M	-1.65M

Jerash Holdings (US) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.17 is below the 20-day moving average (MA) of 3.24, above the 50-day MA of 3.10, and above the 200-day MA of 3.14, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 15.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JRSH.

Jerash Holdings (US) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
UFI	51 Neutral	$73.58M	-1.65	-9.61%	―	-5.26%	42.84%
JRSH	50 Neutral	$40.51M	8.27	0.99%	6.75%	12.25%	―
VNCE	46 Neutral	$37.08M	3.44	-33.24%	―	2.58%	-502.04%
LAKE	45 Neutral	$87.96M	-2.52	-28.97%	1.35%	27.42%	-5275.12%
XELB	45 Neutral	$8.37M	-0.22	-78.27%	―	-46.66%	24.23%
CULP	41 Neutral	$40.52M	-2.96	-18.32%	―	-7.76%	49.20%

Jerash Holdings (US) Corporate Events

Jerash Holdings expands capacity with new Jordan facility

On February 2, 2026, Jerash Garments and Fashions Manufacturing Company Limited, a subsidiary of Jerash Holdings, received approval from the Housing Bank for Trade and Finance to purchase a bank-owned, approximately 184,000-square-foot manufacturing building and associated land adjacent to its existing facilities in South Amman, Jordan, for about $3.4 million, funded through a $0.6 million down payment and $2.8 million in bank financing over eight years. Announced publicly on February 5, 2026, the company plans to invest a further $5 million in renovations and advanced equipment to create a flagship production complex that is expected to boost manufacturing capacity by at least 40% and, once fully operational before the end of 2026, gradually employ up to roughly 2,500 additional workers, signaling a significant expansion of Jerash’s operational scale to support growing demand from global apparel brands and to pursue new business opportunities.

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 Declares Regular Quarterly Cash Dividend

On February 3, 2026, Jerash Holdings (US), Inc. announced that its board of directors had declared a regular quarterly cash dividend of $0.05 per share on its common stock, payable on or about February 20, 2026, to shareholders of record as of February 13, 2026. The move underscores the company’s continued commitment to returning capital to shareholders and may signal management’s confidence in the stability of its operations within the competitive global apparel manufacturing sector.

The most recent analyst rating on (JRSH) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Jerash Holdings (US) stock, see the JRSH Stock Forecast page.