Jichodo Co., Ltd. (3597) AI Stock Analysis

Jichodo Co., Ltd.

(TSE/TYO:3597)

Select Model

Rating:54Neutral

Price Target:JPY 9,313.00▲(6.56% Upside)

Action:downgraded

Date:08/19/26

The overall score of 54 reflects a company with a fortress-like balance sheet and a high dividend yield that is offset by a concerning operational decline. The most significant risk is the deteriorating income statement and the shift to negative operating cash flow, which threatens the sustainability of the dividend and the strong balance sheet if not reversed. The technical and valuation factors provide some support but do not outweigh the fundamental operational challenges.

Positive Factors

Very Low Financial LeverageAn effectively debt-free balance sheet reduces interest and refinancing risk, giving Jichodo resilience during weak demand and flexibility to fund operations or strategic initiatives without relying heavily on external capital.

Negative Factors

Multi-Year Revenue DeclineThree consecutive years of falling sales point to sustained pressure on demand, market position, or product relevance rather than a single temporary setback. Continued contraction can reduce scale benefits and make future margin recovery more difficult.

Jichodo Co., Ltd. (3597) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 25.30B
Dividend Yield: 5.69%
Average Volume (3M): 2,070
Price to Earnings (P/E): 17.7
Beta (1Y): 0.15
Revenue Growth: -11.12%
EPS Growth: 26.50%
Country: Japan
Employees: 179
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Manufacturers

Jichodo Co., Ltd. Business Overview & Revenue Model

Company Description

JICHODO Co.,Ltd. operates as an international manufacturer and distributor specializing in professional attire and workwear. Its diverse product line encompasses men's casual clothing, medical-grade white coats, and protective safety footwear. The co...

How the Company Makes Money

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Jichodo Co., Ltd. Financial Statement Overview

Summary

Financial performance is a tale of two extremes. The balance sheet is exceptional (Score 85) with zero debt and a growing equity base, providing a strong safety net. However, this is severely undermined by a declining income statement (Score 35) and deeply negative cash flow (Score 20), as core operations have begun consuming cash. The overall financial picture is one of a safe but shrinking and cash-burning business.

Income Statement

35Negative

Balance Sheet

85Very Positive

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2022	Jun 2021
Income Statement
Total Revenue	13.28B	13.28B	14.94B	16.86B	17.74B	17.88B
Gross Profit	4.42B	4.42B	4.57B	5.63B	5.95B	5.61B
EBITDA	2.07B	1.69B	1.77B	3.09B	3.76B	2.44B
Net Income	1.43B	1.43B	1.13B	2.02B	2.46B	1.54B
Balance Sheet
Total Assets	43.00B	43.00B	42.52B	42.08B	42.29B	39.41B
Cash, Cash Equivalents and Short-Term Investments	10.08B	10.08B	13.39B	11.01B	8.70B	6.12B
Total Debt	0	0	0	0	0	1.00B
Total Liabilities	4.33B	4.33B	4.40B	3.75B	5.19B	6.32B
Stockholders Equity	38.67B	38.67B	38.12B	38.33B	37.10B	33.09B
Cash Flow
Free Cash Flow	0	-1.77B	3.95B	3.80B	275.68M	5.10B
Operating Cash Flow	0	-1.76B	3.98B	3.82B	313.68M	5.91B
Investing Cash Flow	0	180.99M	-156.81M	-65.12M	133.79M	-934.00M
Financing Cash Flow	0	-1.73B	-1.44B	-1.44B	-865.79M	-2.37B

Jichodo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price8740.00

Price Trends

50DMA8936.40Negative

100DMA9064.91Negative

200DMA9305.88Negative

Market Momentum

MACD-43.33Negative

RSI43.66Neutral

STOCH25.15Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3597, the sentiment is Negative. The current price of 8740.00 is below the 20-day moving average (MA) of 8790.50, below the 50-day MA of 8936.40, and below the 200-day MA of 9305.88, indicating a bearish trend. The MACD of -43.33 indicates Negative momentum. The RSI at 43.66 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3597.

Jichodo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3597 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3569	75Outperform	JPY 181.88B	12.33	10.34%	2.24%	11.57%	10.78%
JP:2685	72Outperform	JPY 141.17B	15.22	11.39%	2.88%	2.97%	9.44%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3002	59Neutral	JPY 121.80B	28.27	4.18%	3.58%	-4.36%	49.85%
JP:3608	56Neutral	JPY 66.77B	18.40	3.79%	3.49%	28.66%	-75.08%
JP:3597	54Neutral	JPY 22.26B	17.72	―	5.69%	-11.12%	26.50%
JP:3591	52Neutral	JPY 188.20B	162.25	0.49%	2.77%	1.78%	-93.82%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3597 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3597	Jichodo Co., Ltd.	8780.00	-44.10	-0.50%
JP:3002	Gunze	4110.00	485.76	13.40%
JP:3569	Seiren Co	3390.00	294.49	9.51%
JP:3608	TSI Holdings Co	1146.00	225.01	24.43%
JP:3591	WACOAL HOLDINGS CORP	3615.00	-1602.14	-30.71%
JP:2685	Adastria Co.,Ltd.	3120.00	575.91	22.64%

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: Aug 19, 2026

Jichodo Co., Ltd. AI Stock Analysis