J-Long Group Limited (JL) AI Stock Analysis

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J-Long Group Limited

(NASDAQ:JL)

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Rating:48Neutral

Price Target:$4.00▼(-4.31% Downside)

Action:reiterated

Date:10/31/26

The score is held back primarily by highly volatile financial performance (notably the sharp 2026 revenue drop) and inconsistent cash generation despite a strong 2025. Technicals also weaken the outlook, with price below all key moving averages and negative MACD. Valuation adds pressure due to the high P/E and lack of dividend yield support.

Positive Factors

Manageable Recent LeverageRecent leverage is modest relative to equity, and the improvement from 2024 suggests a healthier capital structure entering the current period. Positive equity provides a buffer for operations, while lower debt dependence can preserve financial flexibility for investment and resilience.

Negative Factors

Severe Revenue VolatilityThe sharp year-over-year revenue contraction is a major challenge to durable earnings visibility. A smaller and highly variable revenue base can weaken fixed-cost absorption, reduce operating leverage, and make it harder for management to sustain profitability or plan investment over the next several quarters.

J-Long Group Limited (JL) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $14.90M
Dividend Yield: ―
Average Volume (3M): 9,694
Price to Earnings (P/E): 44.0
Beta (1Y): 0.55
Revenue Growth: 7.90%
EPS Growth: 397.38%
Country: US
Employees: 223
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Manufacturers

J-Long Group Limited Business Overview & Revenue Model

Company Description

J-Long Group Limited serves as a prominent supplier of various apparel components, encompassing both reflective and non-reflective garment trims. These products are distributed across Asian markets, notably Hong Kong and the People's Republic of Chin...

J-Long Group Limited Financial Statement Overview

Summary

Financials are mixed: profitability is positive most recently, but revenue is extremely volatile (dropping sharply from ~$39.1M in 2025 to ~$5.4M in 2026), which weakens confidence in durability. Balance sheet leverage is currently manageable (debt-to-equity ~0.16 in 2025) but has shown past spikes (e.g., ~4.8 in 2022). Cash flow can be strong (2025 operating cash flow ~$7.2M; free cash flow ~$6.2M) but has been inconsistent, including negative operating/free cash flow in 2024.

Income Statement

46Neutral

Balance Sheet

60Neutral

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.63M	5.41M	39.08M	28.38M	38.29M	38.29M
Gross Profit	849.68K	1.80M	11.26M	6.80M	1.26M	1.11M
EBITDA	238.28K	427.65K	3.52M	1.20M	6.40M	5.73M
Net Income	-454.56K	354.36K	2.59M	783.66K	6.66M	4.48M
Balance Sheet
Total Assets	16.89M	3.57M	23.45M	16.89M	2.62M	2.46M
Cash, Cash Equivalents and Short-Term Investments	4.16M	1.88M	10.67M	4.16M	6.20M	7.90M
Total Debt	2.13M	590.58K	2.41M	2.13M	3.10M	4.33M
Total Liabilities	6.72M	1.43M	8.41M	6.72M	9.26M	12.23M
Stockholders Equity	10.17M	2.08M	14.64M	10.17M	11.35M	7.06M
Cash Flow
Free Cash Flow	-1.70M	411.00K	6.20M	-1.70M	243.45K	746.93K
Operating Cash Flow	-1.50M	499.90K	7.23M	-1.50M	249.83K	757.65K
Investing Cash Flow	18	-86.97K	-1.02M	17	2.06M	-83.45K
Financing Cash Flow	701.97K	100.74K	-669.87K	701.97K	-5.42M	-2.18M

J-Long Group Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price4.18

Price Trends

50DMA4.49Negative

100DMA4.98Negative

200DMA5.32Negative

Market Momentum

MACD-0.16Positive

RSI46.81Neutral

STOCH46.35Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JL, the sentiment is Negative. The current price of 4.18 is below the 20-day moving average (MA) of 4.22, below the 50-day MA of 4.49, and below the 200-day MA of 5.32, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 46.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JL.

J-Long Group Limited Risk Analysis

J-Long Group Limited disclosed 71 risk factors in its most recent earnings report. J-Long Group Limited 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

2 New Risks

1.Our dual-class share structure with different voting rights will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A Ordinary Shares may view as beneficial.Q1, 2026

2.Our Board of Directors has complete discretion as to whether to distribute dividendsQ1, 2026

J-Long Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JRSH	73Outperform	$95.88M	15.00	10.06%	2.56%	26.63%	966.12%
GIII	72Outperform	$1.38B	9.93	7.53%	1.25%	-8.74%	-22.98%
NCI	64Neutral	$7.78M	-1.00	-13.89%	―	-38.88%	-146.99%
VNCE	62Neutral	$167.51M	22.99	14.48%	―	8.02%	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JL	48Neutral	$14.26M	44.05	16.79%	―	7.90%	397.38%
XELB	38Underperform	$2.98M	-0.12	-95.03%	―	-21.18%	65.21%

* Consumer Cyclical Sector Average

Performance Comparison

JL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JL	J-Long Group Limited	4.18	-0.22	-5.00%
GIII	G-Iii Apparel	31.89	4.04	14.49%
VNCE	Vince Holding Corp	13.56	10.86	402.41%
XELB	XCel Brands Inc	0.42	-0.54	-56.56%
JRSH	Jerash Holdings	7.80	4.77	157.09%
NCI	Neo-Concept International Group Holdings Limited	5.81	-62.67	-91.52%

J-Long Group Limited Corporate Events

J-Long Group Files November AGM Notice With Proposed Capital and Voting Changes

Nov 9, 2026

J-Long Group Limited filed a Form 6-K on November 9, 2026, providing notice and proxy materials for its annual general meeting. The AGM was scheduled for November 20, 2026, at the company’s Hong Kong office, with holders of record on October 26, 2026...

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.

Date of analysis: Oct 30, 2026

J-Long Group Limited AI Stock Analysis