Jafco Co (8595) AI Stock Analysis

• Market Cap: €129.13B
• Dividend Yield: 3.82%
• Average Volume (3M): 429.32K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.66
• Revenue Growth: 21.45%
• EPS Growth: 27.60%
• Country: JP
• Employees: 131
• Sector: Financial
• Sector Strength: 87
• Industry: Asset Management Services
• EPS (TTM): 15.83
• Shares Outstanding: 56,060,000
• 10 Day Avg. Volume: 784,170
• 30 Day Avg. Volume: 429,323
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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

Jafco Co's strong profitability and low leverage are key strengths, though concerns exist around cash flow and revenue consistency. The technical indicators point to positive momentum but suggest caution due to potential overbought conditions. The stock's attractive valuation, with a low P/E ratio and high dividend yield, makes it appealing. Overall, the stock presents a balanced risk-reward profile, scoring a 73.

Jafco Co Business Overview & Revenue Model

Company Description

JAFCO Co., Ltd. engages in the management and operation of investment enterprise partnership that invests in unlisted companies. Its investment enterprise partnership provides sales support for global operations, staff recruitment, introduction of business or financial partners, identification of joint development partners, internal structure improvement, and initial public offering support. It also supports financial institutions, business corporations, and pension funds. The company was founded on April 5, 1973 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Jafco Co. makes money by investing in promising startups and early-stage companies, often taking equity stakes in these businesses. The company generates revenue primarily through capital gains realized from the sale of these equity stakes, either through public offerings or private sales when these companies mature or are acquired. Additionally, Jafco Co. may earn management fees and performance incentives from managing venture capital funds, leveraging its investment expertise and network to maximize returns for its investors. Strategic partnerships with other financial institutions and corporations can also contribute to its revenue streams by providing co-investment opportunities and expanding its investment portfolio.

Jafco Co Financial Statement Overview

Summary

Jafco Co demonstrates strong financial health with robust revenue growth and solid profit margins, though past earnings fluctuations pose risks. The balance sheet reflects low leverage and strong equity, ensuring financial stability, while cash flow indicates effective operational cash generation despite historical volatility.

Income Statement

Jafco Co has demonstrated a strong revenue growth rate of 21.45% in the most recent year, indicating robust business expansion. The gross profit margin stands at 58.10%, and the net profit margin is a healthy 32.26%, showcasing solid profitability. The EBIT margin of 42.16% and EBITDA margin of 42.64% further highlight the company's efficient operations. However, the year 2023 saw significant fluctuations with a negative EBIT, which poses potential risks.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 83.05% and a low debt-to-equity ratio of 0.11, reflecting financial stability and low leverage risk. Return on Equity (ROE) is impressive at 6.78%. Although the company's high equity ratio is a strength, the balance sheet shows some volatility in cash and debt levels over the years.

Cash Flow

Jafco Co's cash flow performance is mixed. The operating cash flow to net income ratio is 1.22, indicating effective cash generation from operations. Despite a significant improvement in free cash flow in the latest year, prior years exhibited negative free cash flows, highlighting potential cash flow management challenges.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
24.44B	14.07B	27.68B	21.51B	29.85B
	Gross Profit
12.99B	1.06B	20.91B	13.28B	19.06B
	EBIT
8.18B	-4.41B	16.88B	8.96B	14.97B
	EBITDA
8.36B	-3.32B	17.08B	9.16B	15.16B
	Net Income Common Stockholders
7.49B	40.57B	15.08B	38.50B	11.84B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
67.61B	153.52B	131.81B	176.15B	127.34B
	Total Assets
165.54B	159.85B	233.02B	262.38B	222.06B
	Total Debt
15.12B	149.00M	183.00M	115.00M	249.00M
	Net Debt
-52.49B	-69.33B	-52.42B	-107.40B	-69.29B
	Total Liabilities
27.90B	29.10B	35.63B	47.15B	33.69B
	Stockholders Equity
137.64B	130.75B	197.39B	215.24B	188.37B
Cash Flow		Free Cash Flow
-9.88B	-7.28B	-13.03B	-119.00M	12.01B
	Operating Cash Flow
-9.57B	-7.25B	-12.96B	8.00M	12.18B
	Investing Cash Flow
-100.00M	69.64B	748.00M	49.15B	-277.00M
	Financing Cash Flow
6.84B	-46.23B	-43.47B	-13.94B	-3.58B

Jafco Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2370.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8595, the sentiment is Positive. The current price of 2370 is above the 20-day moving average (MA) of 2159.92, above the 50-day MA of 2155.66, and above the 200-day MA of 2040.95, indicating a bullish trend. The MACD of 83.01 indicates Negative momentum. The RSI at 66.94 is Neutral, neither overbought nor oversold. The STOCH value of 73.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8595.

Jafco Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8595	71 Outperform	€129.13B	13.50	6.83%	3.82%	21.45%	27.60%
Sector *	64 Neutral	$12.65B	9.81	8.05%	17044.60%	12.57%	-4.75%

Jafco Co Corporate Events

JAFCO Group Announces Executive Board Changes

JAFCO Group Co., Ltd. announced a change in its Board of Directors, with Kenichi Akiba resigning and Toshinori Doi nominated as a new independent director. Doi’s extensive experience in finance and international organizations is expected to enhance the company’s decision-making processes and contribute to its strategic direction.

JAFCO Group Transfers Asian Subsidiary to Focus on Domestic Investments

JAFCO Group Co., Ltd. has decided to transfer all shares of its subsidiary, JAFCO Investment (Asia Pacific) Ltd, to Bee Alternatives Management Ltd. This strategic move aligns with JAFCO’s shift towards focusing on domestic investments and enhancing shareholder returns, which is expected to strengthen its corporate value.

JAFCO Group Announces Share Buyback Plan to Boost Shareholder Value

JAFCO Group Co., Ltd. announced a decision to implement share buybacks, aiming to enhance shareholder returns by allocating excess cash. The buyback plan involves acquiring up to 3,500,000 ordinary shares, representing 6.41% of outstanding shares, with a maximum acquisition price of five billion yen, to be executed via market purchase on the Tokyo Stock Exchange.

JAFCO Group Shifts Focus to Domestic Investments and Enhances Shareholder Returns

JAFCO Group Co., Ltd. has announced a strategic shift to focus on domestic investments in Japan, ceasing new investments in the US and Asia, and transferring its overseas subsidiaries to maximize fund performance. This move aims to enhance corporate value by improving capital efficiency and shareholder returns, with plans for share buybacks and revised dividend policies. The company expects this strategy to leverage its competitive advantage in Japan’s growing market, supported by government initiatives, and to strengthen its role in the venture investment and buyout market.

JAFCO Group Reports Strong Fiscal Year Performance and Increased Dividends

JAFCO Group Co., Ltd. reported a significant increase in its consolidated performance for the fiscal year ending March 31, 2025, compared to the previous year. This growth was primarily driven by capital gains from new IPOs and the sale of unlisted securities, resulting in higher net sales and profits. Additionally, the company announced a revised dividend forecast, planning to pay out 88 yen per share as annual dividends, reflecting a 50% payout ratio, which is higher than the previously forecasted amounts.

JAFCO’s Portfolio Company Progress Technologies Group Listed on TSE Growth Market

JAFCO Group Co., Ltd. announced the listing of its portfolio company, Progress Technologies Group, on the TSE Growth Market. This move signifies a strategic advancement for JAFCO, enhancing its market position and potentially increasing its influence in the technology and manufacturing sectors. The listing is expected to bolster Progress Technologies Group’s capabilities in offering innovative solutions and expand its market reach.

JAFCO Announces Executive and Employee Position Changes

JAFCO Group Co., Ltd. announced changes in its executive and employee positions, effective April 1, 2025. Keisuke Miyoshi will continue as President & CEO, while Atsushi Fujii will become the General Manager of the Investment Division. These changes are expected to streamline operations and enhance the company’s investment focus.

JAFCO Group Invests in Automotive Jig Manufacturer NEIVE Co., Ltd.

JAFCO Group Co., Ltd. announced its investment in NEIVE Co., Ltd., a company that specializes in manufacturing automotive inspection jigs. This strategic partnership will enable JAFCO to provide NEIVE with management expertise and access to advanced technologies, thereby strengthening NEIVE’s position in the automotive industry and potentially leading to new growth opportunities for both companies.

JAFCO Group Invests in PartnerProp Inc.

JAFCO Group Co., Ltd., a company known for its strategic investments, has announced its recent investment in PartnerProp Inc., a firm specializing in the development and supply of Partner Relationship Management tools. This move, completed in November 2024, underscores JAFCO’s commitment to enhancing its portfolio with innovative technology solutions, potentially strengthening its position in the tech investment sector.

JAFCO Group Invests in AI-driven Healthcare

JAFCO Group Co., Ltd., a company engaged in investment activities, has announced a new investment in ARCS Inc. ARCS Inc. specializes in developing AI and automation technologies specifically for assisted reproductive medicine. This strategic move may enhance JAFCO’s portfolio by tapping into the growing field of AI-driven healthcare solutions, potentially strengthening its industry position and offering new opportunities for stakeholders.

JAFCO Group Reports Strong Financial Growth Amid Market Volatility

JAFCO Group Co., Ltd. reported significant growth in its financial results for the nine months ended December 31, 2024, with net sales increasing by 73.9% and operating income by 149.6% compared to the previous year. The company also introduced interim dividends, reflecting its commitment to shareholder value, while maintaining a cautious approach to financial forecasting due to market volatility.