Jerash Holdings (US), Inc. Fundamental Analysis (NASDAQ: JRSH)
Jerash Holdings (US), Inc. Fundamental Analysis (NASDAQ: JRSH)
Jerash Holdings (US), Inc. (NASDAQ: JRSH) shows moderate financial fundamentals with a PE ratio of 14.00, profit margin of 2.77%, and ROE of 7.62%. The company generates $0.2B in annual revenue with strong year-over-year growth of 24.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze JRSH's fundamental strength across five key dimensions:
Efficiency Score
WeakJRSH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentJRSH trades at attractive valuation levels.
Growth Score
ExcellentJRSH delivers strong and consistent growth momentum.
Financial Health Score
ExcellentJRSH maintains a strong and stable balance sheet.
Profitability Score
WeakJRSH struggles to sustain strong margins.
Key Financial Metrics
Is JRSH Expensive or Cheap?
P/E Ratio
JRSH trades at 14.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, JRSH's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Jerash Holdings (US), Inc. at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.14 times EBITDA. This is generally considered low.
How Well Does JRSH Make Money?
Net Profit Margin
For every $100 in sales, Jerash Holdings (US), Inc. keeps $2.77 as profit after all expenses.
Operating Margin
Core operations generate 4.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.62 in profit for every $100 of shareholder equity.
ROA
Jerash Holdings (US), Inc. generates $5.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Jerash Holdings (US), Inc. generates limited operating cash flow of $11.51M, signaling weaker underlying cash strength.
Free Cash Flow
Jerash Holdings (US), Inc. produces free cash flow of $6.66M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
JRSH converts 9.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.005
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How JRSH Stacks Against Its Sector Peers
| Metric | JRSH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.00 | 26.48 | Better (Cheaper) |
| ROE | 7.62% | 966.00% | Weak |
| Net Margin | 2.77% | -4921.00% (disorted) | Weak |
| Debt/Equity | 0.14 | 0.62 | Strong (Low Leverage) |
| Current Ratio | 3.11 | 2.33 | Strong Liquidity |
| ROA | 5.61% | 295.00% | Weak |
JRSH outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Jerash Holdings (US), Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.98%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-112.03%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-81.87%
Industry Style: Cyclical, Growth, Discretionary
Declining