Jerash Holdings (US), Inc. (JRSH) stock analysis

P/E above its 5-year median

Jerash Holdings (US)'s P/E of 14.6 is above its own 5-year median of 14.3.

P/E below the industry

Jerash Holdings (US)'s P/E of 14.6 is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 18.9.

EV/EBITDA above its 5-year median

Jerash Holdings (US)'s EV/EBITDA of 7.4 is above its 5-year median of 4.5.

P/B below the industry

Jerash Holdings (US)'s price-to-book of 1.37 is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 1.41.

Trading above fair value

The share price of $7.30 is above our fair value estimate of $7.30.

Margin of safety under 20%

The price is 0.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 12.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 960% over the last twelve months, against a 5-year average of -3.1% a year.

Growing faster than the industry

Revenue grew 26.6% over the last twelve months; the Apparel and Other Finished Products Made from Fabrics and Similar Materials median is 2.3%.

Guidance issued

The latest outlook (fiscal 2027 third quarter Revenue, Nov 10, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 17.2% over the last twelve months, against 15.7% a year earlier.

Return on equity under 15%

Return on equity was 10.1% over the last twelve months and averaged 3.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 16.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Jerash Holdings (US)'s return on equity of 10.1% is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 9.5%.

Earnings shrank over 5 years

Net income shrank 3.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 3.6% over the last twelve months, against a 5-year average of 1.4%.

Net margin below the industry

Jerash Holdings (US)'s net margin of 3.6% is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 3.6%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 5.4 times.

Short-term assets cover short-term debts

Current assets are 3.12 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.03; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Jerash Holdings (US) paid dividends worth 2.7% of the share price over the last twelve months.

Yield below Treasuries

The 2.7% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Jerash Holdings (US) yields 2.7%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 38.5% of net income.

Covered by free cash flow

Dividends take 55.0% of free cash flow.