# JGC Holdings (1963.JP)

Canonical: https://gigainvestors.com/s/1963.JP

Analysis as of: 2026-10-15T07:09:23.751Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 2,085.50 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 4

- Operating margin variation: 1.29×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.03×

- FY2018: 0.03×

- FY2019: 0.04×

- FY2020: 0.04×

- FY2021: 0.05×

- FY2022: 0.05×

- FY2023: 0.06×

- FY2024: -0.02×

- FY2025: -0.01×

- FY2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.3%

- ROIC, second-lowest year: -8.1%

- Typical minus recent gross margin: 5.7 pp

- Typical gross margin (annual median): 7.9%

- Recent gross margin (lower of latest and 3-year median): 2.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 1.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -7.6%

- FY2018: 5.2%

- FY2019: 5.7%

- FY2020: 7.3%

- FY2021: 6.9%

- FY2022: 9.5%

- FY2023: 23.6%

- FY2024: -12.3%

- FY2025: -8.1%

- FY2026: 38.0%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.67×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 19B

- Net income, five-year total: JPY 29B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -4.5 pp

- Working capital / revenue, change between three-year averages: -31.5 pp

- Working capital / revenue, final three-year average: -13.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.07×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 2.43×

- FY2026: 0.85×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.2% vs -8.1%

- Per-share earnings: 65.75 to -1.65 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: JPY 61B

- Cumulative retained earnings: JPY 31B

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: JPY -67.40

- Per-share value, starting three-year median: JPY 65.75

- Per-share value, ending three-year median: JPY -1.65

- Average buyback yield: 4.9%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 8.9B

- Cumulative net income, 10 years: JPY 57B

- ROIC, first three-year median: 5.2%

- ROIC, last three-year median: -8.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY -87.42

- FY2018: JPY 65.75

- FY2019: JPY 95.14

- FY2020: JPY 16.32

- FY2021: JPY 20.37

- FY2022: JPY -140.77

- FY2023: JPY 122.28

- FY2024: JPY -32.48

- FY2025: JPY -1.65

- FY2026: JPY 173.06

### accounting: pass

- Sloan accruals: -4.5%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.91×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 1.1%

- FY2018: 1.6%

- FY2019: 11.2%

- FY2020: -13.2%

- FY2021: -1.0%

- FY2022: -7.9%

- FY2023: -11.2%

- FY2024: -2.4%

- FY2025: -6.0%

- FY2026: -4.5%

## Holders

## Price story

Down 24% since May 2026 · sales -13.1%

Story as of 2026-10-16T10:00:13.922Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales -13.1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEFQ.pdf; observed 2026-06-19.

- FY2017: JPY 693B 

- FY2018: JPY 723B 

- FY2019: JPY 619B 

- FY2020: JPY 481B 

- FY2021: JPY 434B 

- FY2022: JPY 428B 

- FY2023: JPY 607B 

- FY2024: JPY 833B 

- FY2025: JPY 858B 

- FY2026: JPY 745B 

### Gross margin · FY2026

gross margin 8.6%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEFQ.pdf; observed 2026-06-19.

- FY2017: 0.2% 

- FY2018: 6.2% 

- FY2019: 7.3% 

- FY2020: 9.0% 

- FY2021: 10.1% 

- FY2022: 10.6% 

- FY2023: 11.0% 

- FY2024: 1.3% 

- FY2025: 2.2% 

- FY2026: 8.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 745.3 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEFQ.pdf (filed 2026-06-19); FY2026: revenue 745280000000; grossProfit 64144000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 1.3% to 8.6% during 2024–26; it earns 6.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2024: grossProfit / revenue = 1.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2025: grossProfit / revenue = 2.2%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEFQ.pdf (filed 2026-06-19); FY2026: grossProfit / revenue = 8.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); 10-year return on capital observations [[2017,-0.07605114310665263],[2018,0.05233570818537331],[2019,0.057202318754302914],[2020,0.07339669181659896],[2021,0.06878465942990875],[2022,0.09540374411151778],[2023,0.23579880194535605],[2024,-0.12289481018454004],[2025,-0.08120399808370715],[2026,0.38033276546530964]]; median 0.06299348909210584. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 11% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEFQ.pdf (filed 2026-06-19); Gross margin observations: [[2021,0.10088715809848607],[2022,0.10591011692316311],[2023,0.10994578918749691]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2018: growth capex 2142000000; upkeep 7427000000; owner earnings 16589000000. Growth capex / owner earnings = 0.1291217071553439.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2019: growth capex 0; upkeep 9664000000; owner earnings 21632000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2020: growth capex 0; upkeep 6668000000; owner earnings 4464000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2021: growth capex 0; upkeep 10206000000; owner earnings 1367000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2023: growth capex 4299000000; upkeep 7839000000; owner earnings 30665000000. Growth capex / owner earnings = 0.14019240176096526.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEFQ.pdf (filed 2026-06-19); FY2026: growth capex 0; upkeep 17725000000; owner earnings 35438000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); Dividend observations: [[2017,10723000000],[2018,7569000000],[2019,6310000000],[2020,7192000000],[2021,3030000000],[2022,3031000000],[2023,3789000000],[2024,9136000000],[2025,9676000000],[2026,9641000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 0.7 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); Closing price 2085.5 JPY; reporting-to-trading FX 1; FY2026 annual sales per share 3082.504583910903; price multiple 0.676560226669327. FY2026 cash earnings/share 146.57282825868745. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 1,888.00 per share

- 2016-12: JPY 2,124.00 per share

- 2017-01: JPY 1,963.00 per share

- 2017-02: JPY 2,017.00 per share

- 2017-03: JPY 1,935.00 per share

- 2017-04: JPY 1,945.00 per share

- 2017-05: JPY 1,675.00 per share

- 2017-06: JPY 1,822.00 per share

- 2017-07: JPY 1,769.00 per share

- 2017-08: JPY 1,767.00 per share

- 2017-09: JPY 1,821.00 per share

- 2017-10: JPY 1,889.00 per share

- 2017-11: JPY 1,951.00 per share

- 2017-12: JPY 2,179.00 per share

- 2018-01: JPY 2,356.00 per share

- 2018-02: JPY 2,461.00 per share

- 2018-03: JPY 2,314.00 per share

- 2018-04: JPY 2,685.00 per share

- 2018-05: JPY 2,273.00 per share

- 2018-06: JPY 2,233.00 per share

- 2018-07: JPY 2,163.00 per share

- 2018-08: JPY 2,238.00 per share

- 2018-09: JPY 2,606.00 per share

- 2018-10: JPY 2,191.00 per share

- 2018-11: JPY 1,658.00 per share

- 2018-12: JPY 1,547.00 per share

- 2019-01: JPY 1,660.00 per share

- 2019-02: JPY 1,619.00 per share

- 2019-03: JPY 1,471.00 per share

- 2019-04: JPY 1,588.00 per share

- 2019-05: JPY 1,450.00 per share

- 2019-06: JPY 1,478.00 per share

- 2019-07: JPY 1,425.00 per share

- 2019-08: JPY 1,235.00 per share

- 2019-09: JPY 1,413.00 per share

- 2019-10: JPY 1,585.00 per share

- 2019-11: JPY 1,591.00 per share

- 2019-12: JPY 1,755.00 per share

- 2020-01: JPY 1,597.00 per share

- 2020-02: JPY 1,325.00 per share

- 2020-03: JPY 868.00 per share

- 2020-04: JPY 1,054.00 per share

- 2020-05: JPY 1,159.00 per share

- 2020-06: JPY 1,134.00 per share

- 2020-07: JPY 1,064.00 per share

- 2020-08: JPY 1,171.00 per share

- 2020-09: JPY 1,088.00 per share

- 2020-10: JPY 855.00 per share

- 2020-11: JPY 935.00 per share

- 2020-12: JPY 964.00 per share

- 2021-01: JPY 1,180.00 per share

- 2021-02: JPY 1,367.00 per share

- 2021-03: JPY 1,356.00 per share

- 2021-04: JPY 1,247.00 per share

- 2021-05: JPY 1,044.00 per share

- 2021-06: JPY 1,035.00 per share

- 2021-07: JPY 978.00 per share

- 2021-08: JPY 924.00 per share

- 2021-09: JPY 1,049.00 per share

- 2021-10: JPY 1,066.00 per share

- 2021-11: JPY 957.00 per share

- 2021-12: JPY 961.00 per share

- 2022-01: JPY 1,121.00 per share

- 2022-02: JPY 1,152.00 per share

- 2022-03: JPY 1,464.00 per share

- 2022-04: JPY 1,475.00 per share

- 2022-05: JPY 1,809.00 per share

- 2022-06: JPY 1,754.00 per share

- 2022-07: JPY 1,633.00 per share

- 2022-08: JPY 1,884.00 per share

- 2022-09: JPY 1,809.00 per share

- 2022-10: JPY 1,792.00 per share

- 2022-11: JPY 1,893.00 per share

- 2022-12: JPY 1,678.00 per share

- 2023-01: JPY 1,691.00 per share

- 2023-02: JPY 1,754.00 per share

- 2023-03: JPY 1,641.00 per share

- 2023-04: JPY 1,689.00 per share

- 2023-05: JPY 1,699.00 per share

- 2023-06: JPY 1,865.00 per share

- 2023-07: JPY 1,991.00 per share

- 2023-08: JPY 1,947.00 per share

- 2023-09: JPY 2,079.50 per share

- 2023-10: JPY 1,842.00 per share

- 2023-11: JPY 1,661.50 per share

- 2023-12: JPY 1,627.50 per share

- 2024-01: JPY 1,739.00 per share

- 2024-02: JPY 1,362.50 per share

- 2024-03: JPY 1,486.00 per share

- 2024-04: JPY 1,521.50 per share

- 2024-05: JPY 1,247.00 per share

- 2024-06: JPY 1,260.50 per share

- 2024-07: JPY 1,286.00 per share

- 2024-08: JPY 1,330.00 per share

- 2024-09: JPY 1,252.50 per share

- 2024-10: JPY 1,319.50 per share

- 2024-11: JPY 1,296.50 per share

- 2024-12: JPY 1,315.50 per share

- 2025-01: JPY 1,306.00 per share

- 2025-02: JPY 1,110.00 per share

- 2025-03: JPY 1,176.50 per share

- 2025-04: JPY 1,146.00 per share

- 2025-05: JPY 1,216.50 per share

- 2025-06: JPY 1,249.50 per share

- 2025-07: JPY 1,358.00 per share

- 2025-08: JPY 1,410.50 per share

- 2025-09: JPY 1,510.00 per share

- 2025-10: JPY 1,562.50 per share

- 2025-11: JPY 1,904.50 per share

- 2025-12: JPY 1,900.50 per share

- 2026-01: JPY 2,162.50 per share

- 2026-02: JPY 2,477.00 per share

- 2026-03: JPY 2,272.00 per share

- 2026-04: JPY 2,383.00 per share

- 2026-05: JPY 2,728.50 per share

- 2026-06: JPY 2,504.50 per share

- 2026-07: JPY 2,259.50 per share

- 2026-08: JPY 2,356.50 per share

- 2026-09: JPY 2,277.00 per share

- 2026-10: JPY 2,159.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 1,478.06 per share, central JPY 1,543.97 per share, high JPY 1,631.70 per share

- FY2021: low JPY 1,203.11 per share, central JPY 1,227.16 per share, high JPY 1,259.19 per share

- FY2022: low JPY 1,279.23 per share, central JPY 1,302.96 per share, high JPY 1,334.56 per share

- FY2023: low JPY 1,524.86 per share, central JPY 1,558.72 per share, high JPY 1,603.80 per share

- FY2024: low JPY 1,406.52 per share, central JPY 1,435.28 per share, high JPY 1,461.23 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEFQ.pdf); period 2026-03-31, filed 2026-06-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.