JTEC Corporation designs, manufactures, and sells X-ray mirrors for synchrotron facilities in Japan. Its X-ray mirrors are used for study in the pharmaceutical, electronic, material, food, beauty, and other fields. The company also designs, develops, manufactures, and sells automated cell culture systems, as well as automated systems in various fields. JTEC Corporation was founded in 1993 and is headquartered in Ibaraki, Japan.

Japan

JTEC Corporation

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

3446.T reported revenue of JPY 2 174mn in the last 12 months, up 7% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 11% from FY24 to JPY 36.09. Market expects EPS to reach JPY 66.58 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 12ppts over six months and grown 0ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 21.7% in the last 12 months, up from 21.5% in FY24. 

Historically, 3446.T has reported good net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 9.8%, a growth from 9.3% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to 6.3% in the last 12 months, an increase from 5.8% in FY24. The market analysts predict that RoA will be 8.2% in FY25, again stronger than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 7.2%, below the peers. The consensus estimate for FY25 for RoCE is 13.8%, however, this time ahead of the peers. 

JTEC Corporation reported a return on equity (RoE) of 8.4% in the last 12 months, up from 7.8% in FY24. The market consensus projects an RoE of 10.8% in FY25, again behind its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.5 in the past several years. This ratio implies a good shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

3446.T has very poor trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is unstable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, and poor working capital management.

In highly turbulent market conditions, 3446.T is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, 3446.T is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from large to substantial. 

From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. Specifically, the stock is fairly valued on P/E, overvalued on EV/EBITDA, overpriced on P/FCF. 

JTEC Corporation

¥ 1135

3

JTEC Corporation

¥ 1135

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

¥ 1135

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