Company Overview
Jerash Holdings (US), Inc. operates within the consumer cyclical sector, specifically focusing on the apparel manufacturing industry where it manufactures and exports customized, ready-made sportswear, and outerwear through knitted fabrics. The company's product portfolio includes t-shirts, jackets, vests, pants, shorts, and polo shirts, alongside personal protective equipment, serving various brands globally. As a publicly traded entity with the ticker JRSH, the firm employs a workforce of 6,000 individuals to support its manufacturing and export operations. The company currently maintains a market capitalization of $36.83M and reports trailing twelve-month revenue of $152.62M, positioning it as a mid-sized player in its niche. These valuation figures indicate that while the company has established a significant operational footprint with substantial revenue generation, its market valuation remains modest relative to its annual sales, reflecting a smaller-scale position within the broader apparel manufacturing landscape.
Financial Health
The company generated trailing twelve-month revenue of $152.62M, resulting in a net income of $1.80M and an EBITDA of $7.41M. The substantial gap between the $152.62M in revenue and the $1.80M in net income reveals a cost structure where operating expenses, including cost of goods sold and administrative costs, consume a significant majority of top-line growth. While EBITDA stands at $7.41M, the free cash flow is reported at -$3,115,546, indicating that capital expenditures and working capital requirements exceed operating cash generation in the current period, which limits immediate financial flexibility for expansion without external financing. Profitability metrics show a gross margin of 16.2%, an operating margin of 4.7%, and a profit margin of 1.2%, suggesting that the company retains a small portion of revenue as profit after covering the costs of production and overhead. On the balance sheet, the company holds $11.45M in cash against $9.70M in debt, supported by a debt-to-equity ratio of 15.25, which suggests a relatively conservative leverage position given the low absolute debt levels. Liquidity is further evidenced by a current ratio of 2.79, indicating that the company holds more than twice the amount of current assets relative to its current liabilities. Return on equity stands at 2.9% and return on assets at 3.4%, metrics that reveal the company generates modest returns on shareholder capital and total assets, pointing to a capital-intensive business model typical of manufacturing.
Valuation Assessment
The trailing twelve-month P/E ratio is 20.71, while the forward P/E is significantly lower at 7.63. This discrepancy implies that the market expects earnings to increase substantially in the future to justify the current low multiple, or conversely, that current earnings are suppressed by one-time costs or cyclical downturns that are not expected to persist. The price-to-book ratio is 0.58, which indicates that the company's market value is less than its book value, suggesting the market prices the stock at a discount relative to its tangible asset base. Alternative valuation metrics include a price-to-sales ratio of 0.24 and an EV/EBITDA of 4.74, both of which suggest the stock is trading at a very low multiple compared to peers, potentially reflecting high risk or limited growth expectations. Regarding trading range, the 52-week high is $3.64 and the 52-week low is $2.81; without a specific current share price provided in the facts, the precise location within this range cannot be calculated, but the wide spread indicates significant volatility over the past year. The beta value is 1.00, which means the stock's price volatility moves in tandem with the broader market, offering no specific hedge or amplification relative to systemic risk factors.
Growth & Income
Revenue growth year-over-year is recorded at 18.0%, whereas earnings growth year-over-year is N/A. The absence of a reported earnings growth rate implies that net income has either declined, remained flat, or is not yet tracked in the standard growth metrics, meaning revenue expansion is not being fully translated into proportional profit growth at this time. The company offers a dividend yield of 6.9%, yet the payout ratio is 142.9%, which indicates that the dividend is paid out of cash reserves or capital rather than current earnings, making the payout unsustainable if earnings do not improve immediately. Since the payout ratio exceeds 100%, the firm is effectively reinvesting earnings into growth or returning capital to shareholders to maintain yield, rather than growing dividends organically from profitability. The overall growth and income profile presents a dichotomy of strong revenue expansion paired with low profitability and a dividend yield that relies on cash balances rather than current earnings power.