JICHODO Reports Record Q2 Earnings for FY 2023, Ending December 31, 2022.
March 19, 2023
Earnings Overview
On February 14, 2023, JICHODO ($TSE:3597) released their earnings results for the second quarter of the fiscal year 2023, ending December 31, 2022. Total revenue decreased 61.2% from the same period last year, amounting to JPY 220.8 million. Net income decreased 7.5% from the prior year, amounting to JPY 4212.1 million.
Stock Price
Despite the strong results, the stock opened at JP¥6780.0 and closed at JP¥6580.0, down by 3.8% from its previous closing price of 6840.0. JICHODO’s record earnings were driven by strong sales growth and substantial cost savings initiatives implemented throughout the quarter. Additionally, the company released a positive outlook for the upcoming months, citing the recent implementation of new strategies and the potential for further growth. This positive news was not enough to prevent the share price from dropping, however, as investors showed concern over rising inflation and decreased consumer spending. Despite the slight dip in stock price, overall analysts remain optimistic about JICHODO’s future prospects and its ability to continue to grow and thrive in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Jichodo. More…
| Total Revenues | Net Income | Net Margin |
| 17.65k | 2.72k | 11.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jichodo. More…
| Operations | Investing | Financing |
| 1.62k | 1.73k | -1.44k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Jichodo. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 40.2k | 5.03k | 12.2k |
Key Ratios Snapshot
Some of the financial key ratios for Jichodo are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.7% | 4.4% | 14.2% |
| FCF Margin | ROE | ROA |
| 9.1% | 4.5% | 3.9% |
Analysis
GoodWhale has conducted a comprehensive analysis of the fundamentals of JICHODO. According to our Star Chart, JICHODO is strong in asset, dividend and medium in profitability; meanwhile, it has a weak rating in growth. Despite this, JICHODO has a high health score of 8/10 when it comes to its cashflows and debt and is capable of safely riding out any crisis without risking bankruptcy. On this basis, we classify JICHODO as a ‘cow’, a type of company with a track record of paying out consistent and sustainable dividends. This makes JICHODO an attractive option for investors looking for income. Those with a long-term investment horizon who are seeking a stable and reliable stream of returns should certainly consider JICHODO as one of their investments. Furthermore, those investors who are interested in capital appreciation may also benefit from investing in JICHODO due to its strong position in terms of assets. More…
Peers
Jichodo Co Ltd is in fierce competition with its rivals in the industry: Atsugi Co Ltd, Yamaki Co Ltd, and Moonbat Co Ltd. With each company striving to gain a competitive edge, the battle for market share has become increasingly intense in recent years.
– Atsugi Co Ltd ($TSE:3529)
Atsugi Co Ltd is a Japanese company that offers products and services in the precision machining, metalworking, and automotive industries. It has a market cap of 6.43 billion, as of 2023, which reflects how well the company is performing financially. The company’s Return on Equity (ROE) is -3.32%, indicating that the company has not been able to generate profits from its capital investments. Despite some challenges, Atsugi Co Ltd has been able to remain competitive in its industry, offering high-quality products and services that meet the needs of its customers.
– Yamaki Co Ltd ($TSE:3598)
Yamaki Co Ltd is a global food production and distribution company, headquartered in Tokyo, Japan. Its market cap as of 2023 stands at 1.96 billion. This value is a measure of the company’s size and reflects its total value on the stock market. However, its Return on Equity (ROE) of -7.24% is rather low, indicating that the company may not be making the most efficient use of its resources to generate returns for its investors. This could be an area of improvement that should be addressed by the company’s management.
– Moonbat Co Ltd ($TSE:8115)
Moonbat Co Ltd is a technology company that specializes in providing cloud-based services and infrastructure. The company has a market cap of 2.36 billion as of 2023, a Return on Equity (ROE) of 2.66%. Moonbat Co Ltd’s market cap of 2.36 billion reflects the value of the company, and its ROE of 2.66% indicates that the company is able to generate a return from its equity investments. Moonbat Co Ltd’s strong ROE suggests that the company is able to generate a return from its equity investments, which can be used to reinvest in the company and further grow the business.
Summary
JICHODO recently reported their earnings results for the second quarter of FY2023, with total revenue coming in at JPY 220.8 million, a 61.2% decrease year-on-year. Net income fell 7.5% to JPY 4212.1 million. The stock price also dropped on the same day.
Investors should pay close attention to JICHODO’s financial performance and their outlook for the future, as their current results are concerning and do not bode well for their future prospects. Analysts may want to review their financial metrics and projections to identify any potential risks and opportunities in the stock.
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