JSS CORP (6074) AI Stock Analysis

• Market Cap: ¥2.17B
• Dividend Yield: 3.11%
• Average Volume (3M): 8.95K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.41
• Revenue Growth: 4.70%
• EPS Growth: -10.05%
• Country: JP
• Employees: 483
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 3.37
• Shares Outstanding: 4,026,056
• 10 Day Avg. Volume: 11,000
• 30 Day Avg. Volume: 8,950
• 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: ¥610.00
• Price Target Upside: 8.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥610.00 ▲(8.54% Upside)

JSS CORP's strong technical indicators and attractive valuation are the main strengths, supporting a bullish outlook. However, mixed financial performance, especially in cash flow management, introduces some risk. Investors should consider potential short-term caution due to overbought conditions as indicated by RSI.

JSS CORP Business Overview & Revenue Model

Company Description

JSS Corporation engages in the operation of a sports club in Japan. The company plans, operates, manages, and consults sports clubs, such as swimming schools, tennis schools, and fitness clubs; sells, repairs, and maintains sporting goods, sports equipment, and accessory and auxiliary equipment; travel services; processes machines and equipment; holds, plans, manages, and operates cram school classes, sports classes, culture classes, and health promotion classes; and develops and sells computers, software, and terminal equipment. It is involved in the construction work business, building planning and design, civil engineering, steel structure, pipe work, and machinery installation and design works; real estate rental business; sale of metal product and mechanical equipment, health equipment, beauty equipment, and medical equipment; marketing business, such as research, analysis, and consulting related to the market and advertisement; planning, production, manufacturing, leasing, distribution, sales, and import/export of audio/visual software, such as music tapes, video tapes, compact discs, and DVDs; and labor dispatch business. In addition, the company sells and exports clothing, food, cosmetics, books, stationeries, toys, quasi-drugs, sanitary products, daily necessities, and decorative items; offers security, maintenance inspection, and cleaning services for internal and external facilities of various buildings, as well as health checkups and guidance services. Further, it manages restaurants; buys and sells secondhand items; and plans and implements various events, seminars, and training sessions. The company was formerly known as Japan Swimming Service Co., Ltd. and changed its name to JSS Corporation in June 1991. JSS Corporation was incorporated in 1976 and is based in Osaka, Japan.

How the Company Makes Money

JSS CORP generates revenue through a multi-faceted business model that includes the sale of proprietary technology products, manufacturing services, and consulting solutions. Key revenue streams include direct sales to consumers, long-term contracts with industrial clients, and strategic partnerships with other technology firms. The company also capitalizes on its intellectual property through licensing agreements. Significant factors contributing to its earnings include a strong research and development program, which drives innovation and maintains competitive advantage, and a global distribution network that expands its market reach.

JSS CORP Financial Statement Overview

Summary

JSS CORP exhibits a mixed financial performance. The income statement reflects moderate revenue growth, but profitability margins face pressure. The balance sheet is solid, supported by a stable equity base and manageable leverage. However, cash flow management appears to need improvement, with inconsistencies in free cash flow generation. Overall, while JSS CORP shows signs of financial health, it faces challenges that require strategic focus, particularly on optimizing operational efficiency and cash flow.

Income Statement

JSS CORP shows a mixed performance in profitability metrics. The Gross Profit Margin has been stable, while the Net Profit Margin indicates a recovery from previous losses. The revenue growth is positive but moderate, signaling steady business operations. However, EBIT and EBITDA margins have shown some volatility and a slight decline compared to prior periods, which could indicate increasing operational challenges.

Balance Sheet

The company's balance sheet is relatively stable with a moderate Debt-to-Equity Ratio. There is a consistent growth in Stockholders' Equity, which enhances the Equity Ratio, showing financial stability. Return on Equity has improved over the years, reinforcing the company's ability to generate profits from its equity base. The trajectory suggests an overall strengthening of financial position despite variations in debt levels.

Cash Flow

The cash flow analysis reveals some areas of concern. Operating Cash Flow to Net Income Ratio has decreased, indicating potential challenges in converting income into cash. Free Cash Flow growth has been inconsistent, with recent periods showing a reduction, possibly due to higher capital expenditures or lower operational cash inflows. The Free Cash Flow to Net Income ratio reflects these challenges, demanding attention to cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.38B	8.38B	8.13B	8.07B	7.55B	6.49B
Gross Profit	1.24B	1.24B	1.38B	1.38B	1.16B	973.55M
EBITDA	486.08M	502.66M	552.95M	607.46M	443.16M	-274.91M
Net Income	191.91M	192.60M	218.56M	234.94M	112.46M	-440.64M
Balance Sheet
Total Assets	7.52B	7.52B	6.35B	7.00B	7.26B	7.03B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.07B	862.11M	1.28B	1.30B	948.03M
Total Debt	2.51B	2.51B	1.65B	2.19B	2.93B	3.03B
Total Liabilities	4.51B	4.51B	3.53B	4.35B	4.80B	4.65B
Stockholders Equity	3.01B	3.01B	2.82B	2.65B	2.46B	2.38B
Cash Flow
Free Cash Flow	0.00	53.73M	168.09M	770.06M	491.56M	-820.17M
Operating Cash Flow	0.00	108.70M	237.93M	802.93M	719.95M	-437.59M
Investing Cash Flow	0.00	17.35M	-55.80M	-42.82M	-222.77M	-349.23M
Financing Cash Flow	0.00	58.52M	-597.01M	-787.14M	-141.19M	1.09B

JSS CORP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 562.00
• 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:6074, the sentiment is Positive. The current price of 562 is above the 20-day moving average (MA) of 561.05, above the 50-day MA of 556.58, and above the 200-day MA of 468.19, indicating a bullish trend. The MACD of 4.51 indicates Positive momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 36.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6074.

JSS CORP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6570	81 Outperform	7.74B	8.11	18.83%	1.52%	15.66%	57.34%
8135	80 Outperform	9.83B	3.45	20.56%	3.59%	7.24%	216.11%
6074	74 Outperform	¥2.17B	12.27		3.11%	4.70%	-10.05%
3326	56 Neutral	2.79B	26.44	19.74%	―	-17.13%	-18.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%