Breaking Down JAFCO Group Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven look at JAFCO Group Co., Ltd. (8595.T): FY2025 revenue surged to ¥29.69 billion (+21.45% YoY) driven by IPO gains and sales of unlisted securities, yet TTM revenue as of Sep 30, 2025 fell to ¥25.61 billion (-19.50% YoY), while Q3 2025 revenue jumped to ¥9.36 billion (+57% YoY) and net income for the year hit ¥9.58 billion (+27.78%); profitability shows a Q3 profit margin of 43% and EPS of ¥73.63, with ROE 4.99%, ROA 3.49% and ROIC 3.75%; balance sheet strength is evident in cash of ¥68.11 billion (Jun 30, 2025), a conservative debt-to-equity of 0.11 and exceptional liquidity (current ratio 31.48, quick ratio 31.31, interest coverage 1,820.20), while valuation metrics feature a market cap of ¥124.29 billion (Dec 12, 2025) with P/S 4.95, P/E 20.12 and forward P/E 12.36, EV/EBITDA 7.81 and EV/FCF 8.83; against these strengths are risks including a six-month decline in sales/profits to Sep 30, 2025, a 52-week share range of ¥1,897-¥2,665 and a beta of 0.51-read on to unpack what these figures mean for investors and growth prospects.

JAFCO Group Co., Ltd. (8595.T) - Revenue Analysis

JAFCO Group's top-line performance in the most recent fiscal periods shows a mix of strong event-driven gains and softer trailing revenue trends, reflecting the private-equity/VC nature of its cash realizations.

• FY ended Mar 31, 2025 revenue: ¥29.69 billion (+21.45% vs. ¥24.44 billion in FY2024).
• TTM revenue as of Sep 30, 2025: ¥25.61 billion (-19.50% YoY).
• Q3 2025 quarter revenue: ¥9.36 billion (+57% YoY vs. same quarter 2024).
• Revenue per employee: ~¥157.09 million, indicating high revenue intensity per staff.
• Market capitalization (Dec 12, 2025): ¥124.29 billion; P/S ratio: 4.95.

Primary drivers and context:

• FY2025 uplift was largely driven by realized capital gains from new IPO exits and strategic sales of unlisted securities - one-time and timing-sensitive events typical for an investment management firm.
• Lower TTM revenue reflects fewer comparable realizations in the 12 months ending Sep 30, 2025, relative to the strong FY2025 realization window.
• P/S of 4.95 versus peers implies the market is pricing JAFCO at a premium to revenue, likely due to expected future realizations and recurring management/fee income.

For additional investor context and shareholder composition, see: Exploring JAFCO Group Co., Ltd. Investor Profile: Who's Buying and Why?

JAFCO Group Co., Ltd. (8595.T) - Profitability Metrics

• Net income (FY ending March 31, 2025): ¥9.58 billion (up 27.78% YoY)
• Q3 2025 profit margin: 43% (Q3 2024: 34%)
• Q3 2025 EPS: ¥73.63 (Q3 2024: ¥37.59)
• Return on equity (ROE): 4.99%
• Return on assets (ROA): 3.49%
• Return on invested capital (ROIC): 3.75%

JAFCO Group Co., Ltd. (8595.T) - Debt vs. Equity Structure

Key metrics show JAFCO Group maintains a conservative capital structure, exceptional liquidity and very strong coverage of interest obligations, while valuation multiples indicate a moderate premium relative to earnings and cash generation.

• Debt-to-Equity Ratio: 0.11 - minimal leverage versus shareholders' equity.
• Current Ratio: 31.48 - short-term assets far exceed short-term liabilities.
• Quick Ratio: 31.31 - near-identical to current ratio, indicating liquid assets dominate current assets.
• Interest Coverage Ratio: 1,820.20 - EBIT relative to interest expense, showing extremely comfortable interest servicing.
• EV / EBITDA: 7.81 - enterprise value relative to operating earnings.
• EV / FCF: 8.83 - enterprise value relative to free cash flow generation.

Implications for investors include strong downside protection from low leverage and abundant liquidity, coupled with valuation multiples that place JAFCO Group in a mid-range valuation profile among asset-management and investment firms. For additional context on company background and business model, see JAFCO Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money.

JAFCO Group Co., Ltd. (8595.T) - Liquidity and Solvency

• Cash and cash equivalents were ¥68.11 billion as of June 30, 2025, down from ¥72.49 billion on March 31, 2025.
• Operating cash flow for the fiscal year ending March 31, 2025, totaled ¥10.44 billion, reflecting positive cash generation from core operations.
• Operating cash flow to capital expenditures ratio is positive, indicating operating cash sufficiently covers capex and supports reinvestment and exits.
• Low debt levels reduce financial risk and contribute to a strong solvency position.
• Current and quick ratios signal a strong ability to meet short‑term obligations.

• Disciplined portfolio management: the firm's ability to convert investments into profitable exits supports recurring cash inflows and preserves liquidity buffers.
• Balance between cash reserves and active dealmaking: slight decline in cash between March and June 2025 reflects ongoing investment and exit timing rather than structural liquidity pressure.
• Credit profile benefits from conservative leverage, reducing refinancing and interest rate sensitivity.

JAFCO Group Co., Ltd. (8595.T) - Valuation Analysis

This section examines market-implied valuation metrics for JAFCO Group Co., Ltd. (8595.T), highlighting current multiples and what they imply about investor expectations for earnings, cash flow generation, and revenue conversion.

• Price-to-Earnings (P/E): 20.12 - investors are paying ¥20.12 for each ¥1 of trailing 12‑month earnings, reflecting a moderate premium versus many domestic peers.
• Forward P/E: 12.36 - the market expects material earnings growth (or one‑off normalization) over the next 12 months; forward multiple is ~38.6% lower than trailing P/E.
• EV / Sales: 2.82 - the enterprise value is 2.82× current revenue, indicating valuation relative to top‑line and signaling premium positioning vs. lower-multiple peers.
• EV / EBIT: 7.93 - implies investors value operating profits at ~8×, a sign of attractive operating earnings valuation for an asset-management/VC firm.
• EV / EBITDA: 7.81 - similar to EV/EBIT, showing limited depreciation/amortization impacts on valuation.
• EV / FCF: 8.83 - the firm is valued at under 9× free cash flow, suggesting robust cash generation relative to its EV.

Key valuation takeaways:

• The spread between trailing P/E (20.12) and forward P/E (12.36) signals market expectations for near‑term earnings improvement or one‑off trailing weakness being reversed.
• EV multiples (Sales, EBIT, EBITDA) clustered in the ~2.8-7.9 range suggest consistency across top‑line and operating profit valuation, while EV/FCF at 8.83 reinforces a cash‑centric valuation appeal.
• Relative attractiveness depends on peer benchmarks, macro expectations for fundraising and exit environments, and the conversion of invested capital into realizable gains and free cash flow.

For context on the company's strategic direction and how these valuation metrics relate to its stated priorities, see: Mission Statement, Vision, & Core Values (2026) of JAFCO Group Co., Ltd.

JAFCO Group Co., Ltd. (8595.T) - Risk Factors

• Six months to Sep 30, 2025: material drop in net sales and profits versus prior-year period (company disclosure).
• TTM revenue (as of Sep 30, 2025): ¥25.61 billion, down 19.50% YoY.
• Market capitalization: down 32.64% since November 19, 1992, indicating a long-term decline in market value.
• Share price volatility: 52-week range ¥1,897.00 - ¥2,665.00, reflecting meaningful short-term price swings.
• Beta: 0.51, implying lower systematic volatility relative to the broader market but not eliminating idiosyncratic risk.
• Average daily trading volume: 239,814 shares, indicating moderate liquidity.

• Operational risk: declines in revenue and profit suggest execution challenges in portfolio companies, fundraising, or exit activity that could persist.
• Market risk: prolonged share-price underperformance and a wide 52-week range increase downside for investors reliant on capital appreciation.
• Liquidity risk: while average volume is moderate, material sell-offs could widen spreads and impact price discovery.
• Valuation & exit risk: lower TTM revenue and weaker results may compress valuation multiples and extend time to successful exits for investments.
• Concentration & strategy risk: dependency on venture/PE cycles exposes JAFCO to macroeconomic and sector-specific shocks.
• Long-term capital risk: the 32.64% market-cap decline since 1992 signals potential structural challenges that warrant scrutiny of strategy and governance.

JAFCO Group Co., Ltd. (8595.T) - Growth Opportunities

• Forecasted revenue CAGR (next 3 years): 7.1% per annum
• Forecasted earnings CAGR (next 3 years): 14.7% per annum
• Forecasted EPS growth: 22.5% per annum

• Deep sector expertise and extensive network enable superior deal sourcing and value creation for startups.
• Established credibility since 1973 enhances founder and institutional partner trust.
• Dual domestic offices in Tokyo and Osaka keep JAFCO proximate to Japan's key innovation clusters while aligning with global tech and healthcare trends.
• Diversified portfolio across life sciences, technology, and healthcare provides multiple growth levers and risk diversification.