Jerash Holdings (NASDAQ:JRSH) specializes in manufacturing and exporting custom sportswear and outerwear for major global brands. On November 12, 2025, JRSH reported its earnings before the market opened, achieving an earnings per share (EPS) of $0.04, which fell short of the estimated $0.14. However, JRSH's actual revenue was approximately $41.97 million, surpassing the estimated $41 million.
During the Q2 2026 earnings call, key figures such as Lin Choi, Eric Tang, and Gilbert Kwong-Yiu Lee discussed the company's financial performance. Despite the lower-than-expected EPS, JRSH reported a 4.3% increase in revenue, reaching $41.97 million, up from $40.2 million in the same quarter the previous year. This growth indicates a positive trend in the company's sales performance.
However, the company's gross margin decreased to 15% from 17.5% in the prior year quarter. Operating income slightly declined to $1.09 million from $1.13 million, and net income fell to $479,000 from $665,000 in the previous year. These figures suggest that while revenue is growing, the company faces challenges in maintaining profitability.
JRSH's financial ratios provide further insight into its performance. The price-to-earnings (P/E) ratio of approximately 50.92 indicates that investors are willing to pay about 51 times the company's earnings over the past year. The price-to-sales ratio stands at 0.29, suggesting that the company's market value is about 29% of its total sales. The enterprise value to sales ratio is 0.28, reflecting the company's valuation in relation to its sales.
Despite a negative enterprise value to operating cash flow ratio of -14.08, JRSH maintains a strong liquidity position with a current ratio of 2.85. This suggests that the company has nearly three times its current assets compared to its current liabilities. Additionally, the debt-to-equity ratio is 0.08, indicating a relatively low level of debt compared to its equity. Looking ahead, Jerash Holdings anticipates a revenue increase of 19 to 21% for the fiscal 2026 third quarter, with a gross margin target of approximately 13 to 15%.
