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Jerash Holdings (US) Inc (JRSH)
NASDAQ:JRSH
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Jerash Holdings (US)
(NASDAQ:JRSH)
61Neutral
Jerash Holdings (US) (JRSH) vs. S&P 500 (SPY)
Market Cap
$44.02M
Dividend Yield5.52%
Average Volume (3M)19.61K
Price to Earnings (P/E)―
Beta (1Y)0.09
Revenue Growth15.70%
EPS Growth-337.22%
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength49
IndustryApparel & Luxury
Share Statistics
EPS (TTM)-0.31
Shares Outstanding12,294,840
10 Day Avg. Volume9,158
30 Day Avg. Volume19,609
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.34
Price to Cash Flow (P/CF)-3.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside39.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Jerash Holdings (US) Business Overview & Revenue Model
Company DescriptionJerash Holdings (US) Inc. is a leading manufacturer of customized and ready-made apparel for prominent global brands. The company primarily operates in the textile and apparel manufacturing sector. It specializes in producing a wide range of garments, including jackets, trousers, shirts, and shorts. Jerash Holdings is known for its commitment to high-quality manufacturing standards and has established production facilities in Jordan, which provide advantageous trade agreements for export to various markets.
How the Company Makes MoneyJerash Holdings (US) Inc. generates revenue by manufacturing and supplying garments to renowned global apparel brands. The company operates on a business-to-business model, where it enters into manufacturing agreements with brands that require high-quality apparel production. Revenue is primarily derived from these manufacturing contracts, where Jerash Holdings is compensated for producing and delivering finished garments according to the specifications of its clients. Key revenue streams include the sale of different types of apparel, such as outerwear, bottoms, and tops. Additionally, the company's strategic location in Jordan enables it to benefit from favorable trade agreements like the Qualifying Industrial Zones (QIZ), allowing for tariff-free exports to the United States, which enhances its competitive pricing advantage. Significant partnerships with large, well-known brands contribute to its financial performance and market presence.
Jerash Holdings (US) Financial Statement Overview
Summary
Jerash Holdings is facing significant financial challenges, with a declining trend in revenue and profitability. Negative EBIT and net income reflect operational struggles, while cash flow challenges pose liquidity risks. However, the balance sheet remains strong with low leverage.Income Statement
Jerash Holdings has shown a declining trend in revenue and profitability over the past few periods. The TTM (Trailing-Twelve-Months) data indicates a negative EBIT and net income, reflecting operational challenges. Gross profit margins have decreased, with significant declines in both EBIT and EBITDA margins, indicating efficiency issues and cost pressures.45
Neutral
Balance Sheet
The company maintains a conservative balance sheet with low debt levels and a strong equity position. The debt-to-equity ratio is low, suggesting limited leverage risk. However, the declining return on equity and equity ratio highlight diminishing returns on shareholder investments and reduced asset efficiency.65
Positive
Cash Flow
Jerash Holdings' cash flow performance has weakened, with negative operating and free cash flows in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow challenges. This trend poses liquidity risks and reflects operational inefficiencies.40
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 138.14M | 117.19M | 138.06M | 143.35M | 90.21M | 93.02M | Gross Profit |
| 18.58M | 16.90M | 21.79M | 27.33M | 16.00M | 17.98M | EBIT |
| -2.01M | -664.96K | 4.41M | 10.49M | 5.39M | 5.67M | EBITDA |
| 1.62M | 3.13M | 8.27M | 13.44M | 7.94M | 9.66M | Net Income Common Stockholders |
| -3.78M | -2.01M | 2.42M | 7.92M | 4.15M | 6.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.80M | 12.43M | 17.80M | 25.68M | 21.13M | 26.13M | Total Assets |
| 83.72M | 80.25M | 83.72M | 85.31M | 73.25M | 67.48M | Total Debt |
| 768.75K | 989.10K | 768.75K | 1.61M | 1.95M | 860.25K | Net Debt |
| -17.03M | -11.44M | -17.03M | -23.57M | -19.18M | -25.27M | Total Liabilities |
| 15.49M | 15.81M | 15.49M | 16.01M | 16.56M | 12.73M | Stockholders Equity |
| 68.23M | 64.39M | 68.23M | 69.30M | 56.39M | 54.45M |
| Cash Flow | Free Cash Flow | ||||
| -4.30M | -2.36M | 5.00M | 3.91M | -2.39M | 2.23M | Operating Cash Flow |
| -5.96M | 2.48M | 10.81M | 8.96M | -1.50M | 6.91M | Investing Cash Flow |
| -2.58M | -5.14M | -13.78M | -8.67M | -894.26K | -4.93M | Financing Cash Flow |
| 2.54M | -2.43M | -3.95M | 3.29M | -1.65M | -2.91M |
Jerash Holdings (US) Technical Analysis
Neutral
3.58
Price Trends
3.51
Positive
3.34
Positive
3.10
Positive
Market Momentum
0.03
Positive
48.59
Neutral
59.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JRSH, the sentiment is Neutral. The current price of 3.58 is below the 20-day moving average (MA) of 3.66, above the 50-day MA of 3.51, and above the 200-day MA of 3.10, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 59.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JRSH.
Jerash Holdings (US) Risk Analysis
Jerash Holdings (US) disclosed 38 risk factors in its most recent earnings report. Jerash Holdings (US) reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jerash Holdings (US) Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.51B | 21.10 | 23.48% | 1.66% | 4.03% | -16.63% | |
63 Neutral | $4.46B | 22.33 | 12.01% | 1.41% | -3.35% | -6.09% | |
61 Neutral | $44.02M | ― | -5.77% | 5.52% | 15.70% | -337.22% | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
59 Neutral | $975.98M | 70.44 | 2.42% | 4.29% | -1.23% | -90.28% | |
58 Neutral | $6.78B | ― | -16.13% | 2.07% | -8.42% | 57.91% | |
47 Neutral | $2.07B | ― | -43.06% | ― | -29.44% | -1343.00% |
* Consumer Cyclical Sector Average
Performance Comparison
JRSH
Jerash Holdings (US)
3.58
0.85
31.14%
COLM
Columbia Sportswear
80.52
1.58
2.00%
HBI
Hanesbrands
5.77
0.50
9.49%
OXM
Oxford Industries
60.53
-42.68
-41.35%
VFC
VF
17.33
2.07
13.56%
TSE:GIL
Gildan Activewear
69.19
24.12
53.51%
Jerash Holdings (US) Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -0.56% | Next Earnings Date: Jun 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted substantial revenue growth and successful expansion plans, indicating strong demand and full bookings. However, the company faced significant challenges with shipping delays, increased costs, and a high tax rate, leading to minimal net income for the quarter.Highlights
Revenue Growth
Revenue for the fiscal 2025 third quarter increased 28.6% to $35.4 million from $27.5 million for the same quarter last year.
Operating Income Increase
Operating income increased 88.3% to $708,000 in the fiscal 2025 third quarter from $376,000 in the same quarter last year.
Expansion Plans
Expansion of existing manufacturing facilities underway, expected to increase capacity by 15% by June. Additionally, planning further expansion in Al-Hasa to increase production capacity by another 5%-10% by the end of 2025.
High Demand and Full Bookings
Factories are fully booked through August with increasing orders from global brand customers, supported by the tariff-free advantage of exporting from Jordan.
Lowlights
Shipping Delays
Sales impacted by congestion at Israel Haifa Port due to geopolitical turmoil, causing delays in shipments valued at approximately $6 million.
Increased Costs
Higher logistics costs due to geopolitical turmoil, with gross margin decreasing from 16.2% to 15.2% compared to the previous year.
High Effective Tax Rate
Income tax expenses for the fiscal 2025 third quarter increased to $450,000 with an effective tax rate of 98.6% compared to 14.2% in the same period of fiscal 2024.
Minimal Net Income
Net income was only $6,000 in the fiscal 2025 third quarter, compared to $232,000 in the same quarter last year.
Company Guidance
During the fiscal 2025 third-quarter call for Jerash Holdings, several key metrics and guidance were provided. The company reported a 28.6% increase in revenue to $35.4 million, despite facing logistical challenges due to geopolitical issues, which delayed approximately $6 million worth of shipments. The gross profit increased by 20.6% to $5.4 million, although the gross margin declined to 15.2% from 16.2% in the previous year, primarily due to increased logistics costs. Operating income rose by 88.3% to $708,000, while net income was $6,000, compared to $232,000 the previous year. The company is also expanding its manufacturing capacity by 15% by June 2025 and an additional 5-10% by the end of the calendar year. Looking ahead, Jerash Holdings expects fourth-quarter revenue to grow by 50-53% compared to the prior year, with a gross margin goal of approximately 15-16%. The company also announced a regular quarterly dividend of $0.05 per share, payable on February 25, 2025.Jerash Holdings (US) Corporate Events
Dividends
Jerash Holdings Declares Regular Quarterly Dividend
Positive
Feb 5, 2025
On February 5, 2025, Jerash Holdings announced that its board of directors declared a regular quarterly dividend of $0.05 per share of common stock, payable on or about February 25, 2025, to stockholders of record as of February 18, 2025. This decision reflects the company’s ongoing commitment to providing shareholder value and maintaining steady financial distributions to its investors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.