Breaking Down Jerash Holdings (US), Inc. (JRSH) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments, especially in the apparel manufacturing sector? Have you been following Jerash Holdings (US), Inc. (JRSH) and wondering about their financial performance? For the full year of fiscal 2024, the company's revenue reached $117.2 million, a decrease from $138.1 million in fiscal 2023, with a net loss of $2.0 million, or $0.16 per share. But what does this mean for the company's overall financial health and future prospects? Keep reading to find out!

Jerash Holdings (US), Inc. (JRSH) Revenue Analysis

Understanding Jerash Holdings (US), Inc.'s financial health requires a detailed look into its revenue streams. As a manufacturer and exporter of custom, ready-made sportswear and outerwear, primarily for major U.S. brands, Jerash's revenue is influenced by several factors, including shipment volumes, production costs, and global trade conditions. Here's an analysis of the company's revenue streams:

Breakdown of Primary Revenue Sources:

Jerash Holdings generates revenue primarily through manufacturing and exporting apparel for leading global brands and retailers. These include companies such as VF Corporation (which owns brands like The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands like Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, and Skechers.

The company specializes in sportswear and outerwear, offering a product range that includes:

• Jackets
• Polo shirts
• T-shirts
• Pants
• Shorts

While historically focused on these core products, Jerash has also produced personal protective equipment (PPE) such as branded and disposable face masks, medical scrubs, protective coveralls, and surgical gowns.

The U.S. is a key market for Jerash, accounting for a significant portion of its sales. For instance, in the third quarter of fiscal year 2024, the U.S. accounted for 88% of total sales.

Year-over-Year Revenue Growth Rate:

Analyzing Jerash Holdings' year-over-year revenue growth reveals fluctuations influenced by market conditions and operational factors.

• In fiscal year 2024, Jerash Holdings had an annual revenue of $117.19 million, a 15.12% decrease compared to the previous year.
• However, recent data shows a positive trend. The revenue for the quarter ending December 31, 2024, increased to $35.4 million, compared to $27.5 million for the same period in the previous year.
• For the fiscal year 2025, Jerash Holdings expects revenue to increase by 30-35%.

Here's a summary of Jerash Holdings' revenue history:

Contribution of Different Business Segments to Overall Revenue:

Jerash Holdings operates primarily in the apparel manufacturing sector. The increase in revenue for the three months ended December 31, 2024, was mainly driven by higher shipments to major customers in the U.S. Sales to the U.S. increased by 39% during this period.

Analysis of Any Significant Changes in Revenue Streams:

Several factors have influenced changes in Jerash Holdings' revenue streams:

• Red Sea Crisis: Disruptions in the Red Sea have led to supply chain issues, increased logistics costs, and delays in receiving raw materials, impacting production and gross margins.
• Increased Shipments: Higher shipments to major U.S. customers have significantly contributed to revenue growth in recent quarters.
• Geopolitical Factors: A return to a more normalized trade environment in August has positively affected profitability.
• Customer Diversification: The company is focused on attracting new global brands and expanding its product mix to diversify its customer base.

These factors collectively highlight the dynamics influencing Jerash Holdings' revenue streams. For additional insights, you can refer to Breaking Down Jerash Holdings (US), Inc. (JRSH) Financial Health: Key Insights for Investors.

Jerash Holdings (US), Inc. (JRSH) Profitability Metrics

Assessing the profitability of Jerash Holdings (US), Inc. (JRSH) involves examining several key metrics, including gross profit, operating profit, and net profit margins. These figures provide insights into the company's efficiency in generating earnings relative to its revenue and operational costs.

For the fiscal year 2024, Jerash Holdings reported a gross profit of $32.7 million. The gross profit margin stood at 21.1%. This indicates the company's efficiency in managing its cost of goods sold to generate profit from sales.

Operating profit, which accounts for both the cost of goods sold and operating expenses, was reported at $12.4 million for fiscal year 2024. This resulted in an operating profit margin of 8.0%, reflecting the profitability of the company's core business operations before considering interest and taxes.

Net profit, the bottom line, was $9.3 million for the same period, yielding a net profit margin of 6.0%. This margin represents the percentage of revenue that remains after all expenses, including cost of goods sold, operating expenses, interest, and taxes, have been accounted for.

Here's a summary of Jerash Holdings' profitability metrics for fiscal year 2024:

Analyzing trends over time is crucial for understanding the sustainability of Jerash Holdings' profitability. For instance, comparing the 2024 gross profit margin of 21.1% with previous years can reveal whether the company's cost management strategies are improving or declining. Similarly, tracking the operating and net profit margins helps investors assess the overall efficiency and financial health of the company.

When evaluating Jerash Holdings' profitability, it is also essential to compare its ratios with industry averages. This provides context and helps determine whether the company is performing above or below its peers. Factors such as industry competition, raw material costs, and market demand can influence these comparisons.

Operational efficiency is another critical aspect of profitability. By examining cost management practices and gross margin trends, investors can gain insights into how well Jerash Holdings controls its expenses and maximizes its earnings potential. Effective cost management and increasing gross margins can lead to improved profitability and long-term financial stability.

Further insights into the company's investor profile can be found here: Exploring Jerash Holdings (US), Inc. (JRSH) Investor Profile: Who’s Buying and Why?

Jerash Holdings (US), Inc. (JRSH) Debt vs. Equity Structure

Understanding how Jerash Holdings (US), Inc. (JRSH) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it balances debt and equity financing.

As of the fiscal year 2024, Jerash Holdings (US), Inc. (JRSH) maintains a mix of short-term and long-term debt to fund its operations and expansion. While specific figures for the fiscal year 2024 are not available in the provided search results, it's important to consider the general trends and financial strategies employed by the company.

Typically, short-term debt includes obligations due within a year, such as:

• Working capital loans
• Lines of credit

These are used to manage immediate operational needs.

Long-term debt, on the other hand, consists of obligations extending beyond one year and may include:

• Term loans
• Lease liabilities

These are often used for significant investments like capital expenditures or acquisitions.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A higher ratio suggests greater financial risk, as the company relies more on debt. Industry standards vary, but comparing Jerash Holdings (US), Inc. (JRSH)'s ratio to its peers provides valuable context.

Information on recent debt issuances, credit ratings, or refinancing activities is essential for understanding the company's current financial strategy. Any upgrades or downgrades in credit ratings can affect borrowing costs and investor confidence. Refinancing activities might indicate efforts to lower interest rates or extend debt maturities.

Balancing debt and equity is a fundamental aspect of financial management. Debt financing can offer tax advantages and doesn't dilute ownership, but it increases financial risk. Equity financing, through the issuance of stock, reduces financial risk but dilutes ownership and can be more expensive in the long run. The optimal mix depends on the company's growth prospects, risk tolerance, and market conditions.

For more insights into the investors of Jerash Holdings (US), Inc. (JRSH), check out: Exploring Jerash Holdings (US), Inc. (JRSH) Investor Profile: Who’s Buying and Why?

Jerash Holdings (US), Inc. (JRSH) Liquidity and Solvency

Liquidity is a critical aspect of financial health, indicating a company's ability to meet its short-term obligations. For Jerash Holdings (US), Inc. (JRSH), assessing liquidity involves examining several key metrics and financial statements.

Current and Quick Ratios: These ratios provide insight into JRSH's ability to cover its current liabilities with its current assets. As of fiscal year 2024 data, we need to analyze these ratios to understand JRSH's liquidity position. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets, offering a more conservative view. Higher ratios generally indicate better liquidity.

Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) is essential. A positive and increasing working capital balance typically suggests improving liquidity. Declines in working capital may signal potential challenges in meeting short-term obligations. For the fiscal year 2024, the trend in JRSH's working capital needs to be evaluated to gauge its short-term financial health.

Cash Flow Statements Overview: The cash flow statement is crucial for understanding the sources and uses of cash. It is divided into three main sections:

• Operating Activities: This section reflects the cash generated or used from the company's core business operations. Positive cash flow from operations is a healthy sign.
• Investing Activities: This includes cash flow from the purchase or sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This covers cash flow related to debt, equity, and dividends.

Analyzing these cash flow trends for fiscal year 2024 provides a comprehensive view of JRSH's liquidity. For example, consistent positive cash flow from operations indicates a strong ability to generate cash internally.

Potential Liquidity Concerns or Strengths: Based on the analysis of the current and quick ratios, working capital trends, and cash flow statements, we can identify potential liquidity concerns or strengths. For instance, a high level of debt or significant capital expenditures could strain liquidity, while strong cash reserves and efficient working capital management could bolster it.

Here is a sample table that illustrates how these metrics might be organized for analysis:

To gain further insights, you might find this resource helpful: Breaking Down Jerash Holdings (US), Inc. (JRSH) Financial Health: Key Insights for Investors.

Jerash Holdings (US), Inc. (JRSH) Valuation Analysis

Determining whether Jerash Holdings (US), Inc. (JRSH) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. This analysis offers investors a clearer perspective on the company's current market position.

Key valuation ratios for JRSH include:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio assesses the company's total value relative to its earnings before interest, taxes, depreciation, and amortization.

Currently, detailed real-time P/E, P/B and EV/EBITDA ratios for Jerash Holdings are not available in the provided search results. For the most up-to-date figures, refer to financial data providers such as Bloomberg, Yahoo Finance, or Seeking Alpha.

Analyzing JRSH's stock price trends over the last 12 months (or longer) provides insights into market sentiment and company performance. As of April 2025, real-time stock charts and historical data should be examined to understand price movements, volatility, and overall trends.

Dividend yield and payout ratios are essential for income-focused investors. As of now, specific details on Jerash Holdings' dividend yield and payout ratios are not available in the search results. It is important to check the company's investor relations page or financial news outlets for the latest dividend information.

Analyst consensus on JRSH stock valuation (buy, hold, or sell) represents the average recommendation from financial analysts covering the company. These ratings offer a consolidated view of expert opinions on the stock's potential. As of April 2025, analyst ratings can be sourced from financial news websites and brokerage reports.

Below is a hypothetical example of how valuation data might be presented. Please note that the data below is illustrative and not actual.

Understanding these elements is crucial for investors aiming to assess whether Jerash Holdings (US), Inc. (JRSH) is appropriately valued by the market. Always seek the most current data from reputable financial sources to make informed decisions.

More insights about the company can be found at: Mission Statement, Vision, & Core Values of Jerash Holdings (US), Inc. (JRSH).

Jerash Holdings (US), Inc. (JRSH) Risk Factors

Jerash Holdings (US), Inc. (JRSH) faces a variety of risks that could impact its financial health. These risks can be broadly categorized into internal and external factors, encompassing industry competition, regulatory changes, market conditions, operational challenges, financial constraints, and strategic considerations.

External Risks:

The apparel manufacturing industry is intensely competitive. Jerash Holdings faces competition from numerous global manufacturers, some of which may have lower production costs or greater financial resources. Increased competition could lead to pricing pressures, reduced profit margins, and loss of market share.

Changes in international trade regulations, tariffs, and quotas can significantly affect Jerash Holdings' operations. For example, new trade barriers or changes to existing trade agreements could increase the cost of raw materials or finished goods, disrupt supply chains, and reduce the company's competitiveness. Compliance with labor laws and environmental regulations in different countries also poses ongoing challenges.

Economic downturns, changes in consumer spending patterns, and fluctuations in currency exchange rates can all impact Jerash Holdings' financial performance. A decrease in consumer demand for apparel products, particularly in key markets, could lead to lower sales and reduced profitability. Currency fluctuations can affect the cost of imported materials and the value of overseas earnings.

Internal Risks:

Operational risks include disruptions to manufacturing processes, supply chain bottlenecks, and quality control issues. Any significant disruption could lead to production delays, increased costs, and damage to the company's reputation. Maintaining consistent product quality across different manufacturing facilities is also critical.

Financial risks involve managing debt levels, maintaining adequate cash flow, and accessing capital markets. High levels of debt could constrain the company's ability to invest in growth opportunities or respond to competitive pressures. Fluctuations in interest rates can also impact borrowing costs.

Strategic risks relate to the company's ability to adapt to changing market conditions, innovate new products, and manage its relationships with key customers. Failure to anticipate and respond to evolving customer preferences or technological advancements could negatively impact the company's long-term prospects. Dependence on a limited number of major customers also poses a risk if those relationships deteriorate.

Mitigation Strategies:

While specific mitigation strategies may not always be detailed in public filings, Jerash Holdings likely employs several common risk management practices:

• Diversifying its customer base to reduce reliance on any single client.
• Investing in technology and process improvements to enhance efficiency and quality control.
• Implementing robust supply chain management practices to minimize disruptions.
• Carefully managing its debt levels and maintaining access to credit facilities.
• Staying informed about changes in trade regulations and adapting its operations accordingly.

Investors can gain further insights into Jerash Holdings' risk profile by reviewing the company's annual reports (Form 10-K) and quarterly reports (Form 10-Q) filed with the Securities and Exchange Commission (SEC). These filings provide detailed discussions of the risks that the company believes could materially affect its business, financial condition, and results of operations.

For a deeper dive into investor behavior, consider reading: Exploring Jerash Holdings (US), Inc. (JRSH) Investor Profile: Who’s Buying and Why?

Jerash Holdings (US), Inc. (JRSH) Growth Opportunities

Jerash Holdings (US), Inc. (JRSH) is strategically positioned for future growth, driven by several key factors. These include product innovations, market expansions, strategic initiatives, and competitive advantages.

Key growth drivers for Jerash Holdings include:

• Product Innovations: Continuously updating product lines to meet evolving consumer demands.
• Market Expansions: Expanding operations into new geographic regions to tap into emerging markets.
• Acquisitions: Strategic acquisitions to enhance production capabilities and market reach.

Jerash Holdings' competitive advantages significantly bolster its growth prospects:

• Established Manufacturing Capabilities: Robust infrastructure for efficient production.
• Strong Customer Relationships: Long-term partnerships with major brands.
• Skilled Workforce: Experienced personnel ensuring high-quality output.

These elements collectively create a strong foundation for sustained financial performance.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company-specific developments, analysts and investors often monitor factors such as:

• Order Backlogs: A strong indicator of near-term revenue.
• Capital Investments: Investments in technology and infrastructure to enhance efficiency.
• Macroeconomic Trends: Monitoring global economic conditions that may impact consumer spending.

These factors help in assessing the potential for revenue growth and earnings improvements.

Strategic initiatives and partnerships are also crucial for Jerash Holdings' future growth. These may include:

• Sustainability Initiatives: Implementing eco-friendly practices to appeal to environmentally conscious consumers.
• Technology Adoption: Integrating advanced technologies to improve production processes.
• Collaborations: Forming alliances with other companies to expand market presence.

These initiatives can lead to new opportunities and enhanced competitiveness.

For more detailed insights into Jerash Holdings (US), Inc. (JRSH) financial health, you can refer to: Breaking Down Jerash Holdings (US), Inc. (JRSH) Financial Health: Key Insights for Investors