JMC Corp. (5704) AI Stock Analysis

• Market Cap: ¥2.45B
• Dividend Yield: N/A
• Average Volume (3M): 16.20K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.18
• Revenue Growth: -15.59%
• EPS Growth: -86.49%
• Country: JP
• Employees: 142
• Sector: Industrials
• Sector Strength: 83
• Industry: Specialty Business Services
• EPS (TTM): 9.19
• Shares Outstanding: 5,598,500
• 10 Day Avg. Volume: 7,690
• 30 Day Avg. Volume: 16,203
• PEG Ratio: -1.84
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

JMC Corp.'s stock score reflects strong financial health with a solid balance sheet and positive cash flow trends. However, challenges in maintaining revenue growth and improving return on equity, combined with bearish technical indicators and a high P/E ratio, contribute to a cautious outlook. The lack of immediate returns through dividends and the absence of recent earnings call data or significant corporate events emphasize the need for careful consideration by investors.

JMC Corp. Business Overview & Revenue Model

Company Description

JMC Corp. (5704) is a Japanese company primarily involved in the manufacturing of construction machinery. The company operates in several sectors, including the production of hydraulic excavators, mini excavators, wheel loaders, and other construction equipment. JMC Corp. is known for its innovative engineering and commitment to producing high-quality machinery that meets the needs of the construction and mining industries.

How the Company Makes Money

JMC Corp. generates revenue primarily through the sale of its construction machinery products. The company manufactures and sells a wide range of equipment, including hydraulic excavators and wheel loaders, which are essential for construction and mining operations worldwide. JMC Corp. also offers maintenance and repair services, which provide additional income streams. The company benefits from significant partnerships with distributors and dealers that help expand its market reach and facilitate international sales. Additionally, JMC Corp. may engage in leasing agreements, where construction companies can lease equipment for their projects, providing a recurring revenue stream.

JMC Corp. Financial Statement Overview

Summary

JMC Corp. demonstrates strong financial health with a robust balance sheet, improved profitability margins, and positive cash flow trends. However, the company faces challenges in sustaining revenue growth and improving return on equity. Overall, the financial outlook remains positive.

Income Statement

JMC Corp. has demonstrated strong profitability with a consistent increase in gross profit margin, reaching 33.3% in 2024 from 31.4% in 2023. The net profit margin has also improved to 1.6%, despite a decline in total revenue from 2023 to 2024. The EBIT margin declined significantly but remains positive. Revenue growth has fluctuated, with a recent decline of 15.6% from 2023 to 2024, indicating a potential challenge in sustaining top-line growth.

Balance Sheet

The company's balance sheet is robust with a strong equity base, evidenced by an equity ratio of 61.7% in 2024. The debt-to-equity ratio improved to 0.43, suggesting effective debt management and reduced financial leverage. Return on equity has decreased to 1.7%, reflecting a need to enhance profitability in relation to equity.

Cash Flow

JMC Corp. has shown significant improvement in its cash flow position. Operating cash flow increased substantially, resulting in a positive free cash flow in 2024 after a negative position in 2023. The free cash flow to net income ratio indicates efficient cash generation relative to earnings. However, the free cash flow growth rate from 2023 to 2024 was negative, indicating potential volatility in cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.07B	3.64B	2.96B	2.42B	2.46B
	Gross Profit
1.02B	1.51B	1.21B	877.89M	568.95M
	EBIT
88.09M	536.62M	351.19M	102.23M	-220.46M
	EBITDA
461.70M	815.45M	657.97M	469.71M	88.00M
	Net Income Common Stockholders
50.67M	363.69M	247.54M	114.20M	-173.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
419.71M	303.24M	306.56M	306.26M	222.07M
	Total Assets
4.70B	4.98B	4.33B	3.81B	3.78B
	Total Debt
1.25B	1.44B	1.15B	1.10B	1.33B
	Net Debt
834.49M	1.14B	838.63M	791.38M	1.11B
	Total Liabilities
1.80B	2.12B	1.87B	1.61B	1.70B
	Stockholders Equity
2.90B	2.86B	2.46B	2.20B	2.09B
Cash Flow		Free Cash Flow
287.94M	-329.58M	-32.19M	315.78M	-280.55M
	Operating Cash Flow
529.05M	389.56M	600.41M	456.37M	-28.80M
	Investing Cash Flow
-212.10M	-717.95M	-629.12M	-111.69M	-249.34M
	Financing Cash Flow
-200.49M	325.08M	29.01M	-260.49M	201.68M

JMC Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 438.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5704, the sentiment is Negative. The current price of 438 is above the 20-day moving average (MA) of 435.60, below the 50-day MA of 455.80, and below the 200-day MA of 484.90, indicating a neutral trend. The MACD of -3.07 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 30.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5704.

JMC Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7011	74 Outperform	$9.18T	37.40	10.53%	0.40%	9.25%	26.69%
6370	74 Outperform	$527.06B	16.73	6.03%	1.76%	5.12%	43.96%
6146	73 Outperform	$3.08T	24.86	27.22%	1.28%	27.88%	47.09%
6479	73 Outperform	$868.17B	13.67	8.10%	1.97%	7.44%	-5.08%
5704	64 Neutral	¥2.45B	47.68		―	-15.59%	-86.49%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%
6471	52 Neutral	¥289.83B	39.80		5.41%	-3.42%	-35.09%