JDC CORPORATION (1887) AI Stock Analysis

• Market Cap: €41.23B
• Dividend Yield: 3.81%
• Average Volume (3M): 222.11K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 0.54
• Revenue Growth: -9.10%
• EPS Growth: N/A
• Country: JP
• Employees: 1,048
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 7.67
• Shares Outstanding: 89,255,000
• 10 Day Avg. Volume: 179,360
• 30 Day Avg. Volume: 222,113
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €511.97
• Price Target Upside: -1.16% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥512.00 ▼(-1.16% Downside)

The overall stock score of 58 reflects a mixed outlook for JDC Corporation. The most significant factor is the financial performance, which indicates challenges with declining revenue and profitability, and cash flow constraints. Technical analysis provides a more positive view with bullish momentum, while valuation is moderate due to a high P/E ratio offset by a decent dividend yield.

JDC CORPORATION Business Overview & Revenue Model

Company Description

JDC Corporation provides civil engineering and building construction works in Japan and internationally. It researches and develops electrical power, transportation, ports and harbors, afforestation, flood control, irrigation, land reclamation, underground resources, and other development of national land; and produces, sells, loans, and repairs construction and mining machinery, other machinery, tools, etc. The company also manufactures and sells construction materials, stone materials, chemical products, etc. In addition, it engages in the sale, rental, brokerage, management, and appraisal of real estate; and ownership, rental, and management of leisure facilities, such as golf courses, ski resorts, etc. Further, the company is involved in the generation and supply of electricity, heat, etc.; and soil and water remediation in rivers, lakes, and bays, as well as the collection, transport, processing, disposal, and recycling of municipal, industrial, and construction waste. The company was incorporated in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JDC CORPORATION generates revenue through multiple streams, primarily from the sale of industrial equipment and machinery, which constitutes a significant portion of its earnings. The company also earns substantial income from software licensing and subscription services related to their proprietary technology solutions. Additionally, JDC provides consulting services that help businesses optimize their operations, further contributing to its revenue. Strategic partnerships with other technology firms and suppliers enhance its product offerings and market reach, while long-term contracts with key clients ensure a stable income flow. Furthermore, JDC invests in research and development to innovate new products and services, which helps to maintain its competitive edge and drive future revenue growth.

JDC CORPORATION Financial Statement Overview

Summary

JDC Corporation faces significant challenges with declining revenue and profitability, coupled with cash flow constraints. The income statement and cash flow metrics indicate operational inefficiencies and financial pressures that need addressing to improve financial health. The balance sheet remains relatively stable, providing some financial stability.

Income Statement

JDC Corporation's income statement shows a decline in revenue growth rate by 6.99% in the latest year, indicating challenges in maintaining sales momentum. The gross profit margin stands at 9.88%, reflecting a decrease from previous years, which suggests pressure on cost management. The net profit margin is 1.08%, indicating limited profitability. EBIT and EBITDA margins are also low at 1.88% and 3.81%, respectively, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a stable debt-to-equity ratio of 0.45, suggesting a balanced approach to leveraging. However, the return on equity is modest at 2.01%, indicating limited returns for shareholders. The equity ratio is 47.08%, reflecting a solid equity base relative to total assets, which provides some financial stability.

Cash Flow

Cash flow analysis shows a concerning trend with a negative free cash flow growth rate of -106.40%, indicating cash flow challenges. The operating cash flow to net income ratio is 2.85, suggesting some ability to convert income into cash, but the negative free cash flow to net income ratio of -0.32 highlights cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.54B	123.35B	135.70B	154.20B	126.79B	117.80B
Gross Profit	12.85B	12.19B	-541.00M	13.94B	17.00B	19.02B
EBITDA	8.12B	4.70B	-3.73B	7.94B	13.82B	13.03B
Net Income	586.00M	1.33B	-7.19B	3.29B	7.39B	7.71B
Balance Sheet
Total Assets	143.63B	140.65B	145.68B	162.34B	154.72B	148.77B
Cash, Cash Equivalents and Short-Term Investments	17.15B	18.14B	21.95B	24.17B	47.59B	46.95B
Total Debt	35.26B	30.02B	30.00B	29.93B	30.03B	35.67B
Total Liabilities	77.73B	74.22B	77.09B	84.31B	74.78B	74.56B
Stockholders Equity	65.69B	66.22B	68.44B	77.88B	79.15B	73.83B
Cash Flow
Free Cash Flow	6.72B	-430.00M	-5.02B	-15.26B	1.54B	396.00M
Operating Cash Flow	7.27B	3.79B	-1.26B	-11.06B	3.76B	4.57B
Investing Cash Flow	1.10B	-3.88B	1.47B	-6.31B	4.33B	-2.17B
Financing Cash Flow	-6.81B	-3.79B	-2.09B	-6.12B	-8.08B	16.91B

JDC CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 518.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1887, the sentiment is Positive. The current price of 518 is above the 20-day moving average (MA) of 512.00, above the 50-day MA of 491.12, and above the 200-day MA of 482.79, indicating a bullish trend. The MACD of 7.64 indicates Positive momentum. The RSI at 66.56 is Neutral, neither overbought nor oversold. The STOCH value of 64.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1887.

JDC CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1810	79 Outperform	¥44.77B	12.38	5.39%	4.02%	2.54%	206.27%
1815	74 Outperform	¥53.22B	18.93	4.91%	3.42%	-1.36%	-27.45%
1813	72 Outperform	¥40.90B	12.79	6.43%	2.23%	12.93%	98.16%
1899	71 Outperform	¥59.57B	10.71	6.27%	2.86%	0.18%	14.61%
1929	68 Neutral	¥53.89B	19.01	―	3.72%	1.11%	0.17%
1887	58 Neutral	€41.23B	31.61	1.94%	3.81%	-9.10%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

JDC CORPORATION Corporate Events

JDC Corporation Revises Financial Forecasts Amid Construction Challenges

JDC Corporation has revised its full-year financial forecasts for the fiscal year ending May 31, 2025, due to recent performance and challenges in the construction sector. While net sales are expected to exceed previous forecasts due to new orders and ongoing projects, profits are anticipated to decline significantly due to increased costs and construction delays. Despite these challenges, the company maintains its dividend forecast, prioritizing shareholder returns and internal reserves for future growth.

JDC CORPORATION Invests in Aichi Prefecture Real Estate

JDC CORPORATION has announced an investment in a silent partnership operated by Yuri Fushimi LLC to acquire trust beneficiary interests in real estate located in Aichi Prefecture. This investment, which exceeds 10% of JDC’s stated capital, classifies the partnership as a specified subsidiary. The real estate, an office building in Nagoya City, is expected to increase in value through future development. The impact on the company’s current fiscal earnings is expected to be minimal.

JDC Corporation Reports Financial Turnaround with Green Energy Expansion

JDC Corporation reported a significant improvement in its financial performance for the nine months ending February 28, 2025, with net sales of 88,266 million yen, despite a 10.3% decrease from the previous year. The company achieved a net income per share of 8.95 yen, reversing a loss from the previous period, and is forecasting continued profitability with a projected net income per share of 31.00 yen for the full fiscal year. This turnaround is partly attributed to the inclusion of new subsidiaries in the green energy sector, indicating a strategic shift towards sustainable energy solutions.