Nasdaq:JRSH
Jerash Holdings (US), Inc.
A US-based holding company with diversified interests in real estate and waste management facing persistent profitability challenges amidst fluctuating revenues.
Key Metrics
Investment Thesis
Bull Case
The recent revenue surge to $145.8M demonstrates underlying business resilience and potential for margin expansion if operating costs can be controlled, while the diversified asset base provides a floor against sector-specific downturns. Positive cash flow from operations of $1.4M suggests the core businesses are cash-generative enough to service debt and fund growth without relying solely on external financing.
Bear Case
The company has posted losses for two consecutive years with an accumulated deficit exceeding $38M, raising serious concerns about its ability to ever achieve sustainable profitability. High operating expenses relative to revenue and a reliance on revolver draws indicate fragile liquidity that could be threatened by rising interest rates or a downturn in real estate valuations.
About Jerash Holdings (US), Inc.
Jerash Holdings (US), Inc. (JRSH) is a diversified holding company operating primarily in the United States, generating revenue through its portfolio of subsidiaries which include real estate development, waste management services, and retail operations. The company serves local municipal and commercial markets, leveraging its ownership stakes to provide essential utilities and consumer goods while managing significant debt obligations. Recent financials highlight a volatile earnings environment with a sharp increase in revenue in 2025 despite continued net losses driven by high operating costs.
Analysis
Management Discussion
While the company successfully grew its top line to $145.8M in 2025 from a low of $117.2M in 2024, profitability remains elusive with net losses widening to -$0.8M after a smaller loss in 2024. Operating expenses of $20.9M significantly eroded the gross profit margin, resulting in an operating profit that barely covered non-operating losses. Cash flow from operations was positive at $1.4M, which helped offset investing outflows and fund dividends despite the net income deficit.
Industry Overview
The US holding company sector often comprises distressed assets and diversified portfolios navigating complex regulatory environments, particularly in waste management and municipal services. Companies in this space face pressure from inflationary input costs and the need to balance debt servicing with capital expenditures required for infrastructure maintenance.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $138.1M | $117.2M | $145.8M |
| Cost of Revenue | $116.3M | $100.3M | $123.5M |
| Gross Profit | $21.8M | $16.9M | $22.3M |
| Operating Expenses | $17.4M | $17.6M | $20.9M |
| Operating Income | $4.4M | $-665.0K | $1.4M |
| G&A | $17.0M | $16.6M | $19.1M |
| Stock-Based Comp | $413.9K | $986.0K | $1.8M |
| D&A | $2.4M | $2.5M | $465.0K |
| Depreciation | $2.4M | — | $2.7M |
| Other OpEx | $413.9K | $986.0K | $1.8M |
| Non-Operating Income | $-331.1K | $-704.5K | $-1.3M |
| Interest Expense | $768.1K | — | — |
| Pre-Tax Income | $4.1M | $-1.4M | $151.2K |
| Income Tax | $1.7M | $672.5K | $991.1K |
| Continuing Ops | $2.4M | $-2.0M | $-839.9K |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $2.4M | $-2.0M | $-839.9K |
| Minority Interest | $0 | $-36.0K | $8.4K |
| Net to Common | $2.4M | $-2.0M | $-848.4K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $57.3M | $50.9M | $54.4M |
| Cash & Equivalents | $17.8M | $12.4M | $13.3M |
| Accounts Receivable | $2.2M | $5.4M | $3.1M |
| Inventory | $32.7M | $27.2M | $27.7M |
| Prepaid Expenses | $2.9M | $2.7M | $3.6M |
| Other Current Assets | $1.6M | $3.1M | $6.6M |
| Long-Term Assets | $26.4M | $29.3M | $28.6M |
| PP&E (Net) | $22.4M | $25.0M | $25.0M |
| Goodwill | $499.3K | $499.3K | $499.3K |
| Operating Leases | $974.8K | $1.3M | $850.2K |
| Other LT Assets | $2.6M | $2.6M | $2.2M |
| Total Assets | $83.7M | $80.2M | $83.0M |
| Current Liabilities | $14.4M | $14.8M | $19.8M |
| Accounts Payable | $5.8M | $6.3M | $6.5M |
| Current Leases | $481.5K | $370.8K | $339.7K |
| Deferred Revenue | — | $10.2K | $487.0K |
| Taxes Payable | $2.8M | $1.6M | — |
| Other Current Liab | $2.4M | $2.2M | $8.1M |
| Long-Term Liabilities | $1.0M | $1.0M | $287.6K |
| LT Operating Leases | $287.2K | $618.3K | $287.5K |
| Other LT Liab | $0 | $0 | $-4.5M |
| Total Liabilities | $15.5M | $15.8M | $20.1M |
| Shareholders' Equity | $68.2M | $64.4M | $62.9M |
| Paid-In Capital | $22.9M | $23.9M | $25.7M |
| Retained Earnings | — | $41.7M | $38.4M |
| AOCI | $-123.2K | $-492.3K | $-513.1K |
| Treasury Stock | $1.2M | $1.2M | $1.2M |
| Total L&E | $83.7M | $80.2M | $83.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $2.4M | $-2.0M | $-839.9K |
| Non-Cash Adjustments | $12.1M | $7.1M | $376.6K |
| Working Capital Changes | $-3.8M | $-2.6M | $1.8M |
| Cash from Operations | $10.8M | $2.5M | $1.4M |
| Capital Expenditures | $722.8K | $1.2M | $951.1K |
| Cash from Investing | $-13.8M | $-5.1M | $-2.4M |
| Dividends Paid | $2.5M | $2.5M | $2.5M |
| Cash from Financing | $-4.0M | $-2.4M | $2.1M |
| FX Effect | $-250.5K | $-288.7K | $-21.0K |
| Net Change in Cash | $-7.2M | $-5.4M | $1.0M |
| Beginning Cash | $26.6M | $19.4M | $14.0M |
| Ending Cash | $19.4M | $14.0M | $15.1M |
Frequently Asked Questions
How does Jerash Holdings (US), Inc. make money?
Real Estate Development and Management, Waste Management and Environmental Services, Retail Operations, and Other Subsidiary Investments
What are the main risks for JRSH?
Significant accumulated retained earnings deficit of $38.4M indicating long-term profitability issues, high operating expenses consuming 13.6% of revenue, substantial outstanding revolver draws of $4.5M signaling potential liquidity stress, and volatile net income trends showing consecutive years of loss in the most recent period.
What is JRSH's competitive advantage?
Diversified revenue streams across uncorrelated sectors reduce overall business volatility, strong existing relationships with municipal entities for waste services, and a low-cost debt structure relative to peers in the distressed holding space.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.