ENVALITH
日本金銭機械株式会社 logo

JAPAN CASH MACHINE CO.,LTD.

6418・Prime Market・Machinery

Official website
日本金銭機械株式会社 logo
JAPAN CASH MACHINE CO.,LTD.6418

Business

Japan Cash Machine Co., Ltd. (JCM), founded in 1955, is a manufacturer of cash-related equipment that operates as a group including 14 consolidated subsidiaries. Its core products are cash processing equipment such as Bill Validator Units, Bill Recycler Units, Printer Units, and Coin Recycler Units, and it operates across four segments: casinos (Global Gaming), overseas financial, distribution, and transportation markets (Overseas Commercial), domestic financial, distribution, and transportation markets (Domestic Commercial), and pachinko halls (Equipment for Amusement Arcades). The North American casino market accounts for approximately 68% of sales, making it the largest segment, and the company has a broad customer base including OEM customers such as Aristocrat Technologies Inc. It is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

Building on product manufacturing at its own factories (Nagahama City, Shiga Prefecture, etc.) and its Philippine manufacturing subsidiary, the company sells products through its network of sales subsidiaries in North America, Europe, and Japan. The Global Gaming segment is the revenue pillar that generates the majority of consolidated operating profit, and OEM supply (sales to Aristocrat Technologies Inc. accounted for 13.7% of net sales in FY2026 (ending March 2026)) is also a key revenue source. The Commercial business is currently in an investment phase and is being cultivated as a future second revenue pillar.

Company Strengths

The Global Gaming segment achieved net sales of ¥21,471 million and segment profit of ¥5,016 million (profit margin approximately 23.4%) in FY2026 (ending March 2026), realizing a 14.8% year-on-year increase in profit. Expanded sales of Bill Validator Units and Printer Units in the North American market and an improved, more profitable product mix contributed to the higher margin, absorbing the decline in sales to Europe.

The company possesses bill recognition/discrimination, transport, storage, and recycling technologies as well as mechatronics technology accumulated over 70 years since its founding. R&D expenses in FY2026 (ending March 2026) amounted to ¥1,695 million, and the company has continuously pursued product development, including the completion of a new Bill Validator model for casinos and the completion of three new models for the commercial market.

The company has established sales and manufacturing subsidiaries in key markets, including the United States (JCM AMERICAN CORP., founded 1988), Europe (JCM EUROPE GMBH., founded 1999), North, Central, and South America (JCM COMMERCE MECHATRONICS, INC., founded 2022), and a manufacturing base in the Philippines (established 2020), giving it a foundation for global business operations.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) fell sharply to ¥2,497 million (down 49.1% year on year), while profit attributable to owners of parent rose to ¥4,692 million (up 23.1% year on year), aided by the recording of a ¥3,277 million gain on sale of fixed assets from the sale of the Tokyo head office building, booked as extraordinary income. Underlying earnings power, excluding this one-time gain on sale, has deteriorated significantly from the prior period, and the feasibility of the recovery scenario toward the FY2027 (ending March 2027) forecast (operating profit of ¥3,000 million) needs to be carefully assessed.

The three segments of Domestic Commercial (segment loss of ¥86 million), Equipment for Amusement Arcades (segment loss of ¥667 million), and Overseas Commercial (segment loss of ¥274 million) all posted losses. In the domestic business, the reversal from the special demand related to new banknotes was larger than expected, and delays in the adoption of Smart Gaming Machines dealt an additional blow to the Equipment for Amusement Arcades segment. In Overseas Commercial, inventory adjustments by major customers due to the European economic slowdown are continuing, and new business development in North, Central, and South America has not been sufficient to offset the decline in Europe. As long as losses continue in these three segments, the company-wide earnings structure will remain vulnerable, dependent solely on Global Gaming.

The company forecasts net sales of ¥39,000 million and operating profit of ¥3,000 million for FY2027 (ending March 2027), and sets net sales of ¥42,000 million and operating profit of ¥4,100 million as medium-term targets for FY2029 (ending March 2029). However, external factors remain, including uncertainty over U.S. trade policy (tariff risk), the continued sluggishness of the European economy, and delays in the adoption of Smart Gaming Machines, and achievement of the plan is accompanied by multiple risks. The foreign exchange rate assumptions (US$1 = ¥150, €1 = ¥175) will also affect performance depending on any divergence from actual market rates. The timing of the realization of synergies from the acquisition of the Fujitsu Frontech business is also uncertain, and a stance of confirming the plan's progress on a quarterly basis is required.

Growth Strategy

The next Medium-Term Management Plan is built on three pillars: deepening the Global Gaming business, expanding Overseas Commercial, and developing new domestic market areas

Continuing to expand sales of core products such as bill validator units and printer units for North American casino hotels, while improving the product and service mix toward higher profitability. In FY2026 (ending March 2026), segment profit reached ¥5,016 million (up 14.8% year on year), demonstrating results, and the business will continue to be positioned as a core business.

By acquiring the small and medium-sized recycler/dispenser business from Fujitsu Frontech Limited, the company aims to strengthen development capabilities, expand its product lineup, and reinforce its customer network. This is expected to enhance competitiveness in both the Overseas Commercial and Domestic Commercial segments, drive new market development, and help the business move away from its current loss-making structure.

Promoting market development in North, Central, and South America to reduce dependence on Europe. In FY2026 (ending March 2026), the number of projects steadily increased, but this was insufficient to offset the decline in Europe, resulting in a segment loss of ¥274 million (an improvement from a loss of ¥566 million in the previous fiscal year). The company will continue to accelerate new customer acquisition and sales expansion.

In addition to addressing existing demand in the distribution, transportation, and financial markets, the company is strengthening efforts to develop new market areas, including the clinic market, in order to expand its demand base and improve profitability. In FY2026 (ending March 2026), the segment posted a loss of ¥86 million, a significant deterioration from a profit of ¥1,147 million in the previous fiscal year, making an early return to profitability an urgent priority.

In light of recent structural changes in the amusement arcade industry (declining number of parlors and delayed adoption of Smart Gaming Machines), the company is examining all possibilities, including expansion into new business areas involving a shift toward other leisure markets. In FY2026 (ending March 2026), the segment posted a loss of ¥667 million, a significant deterioration from a profit of ¥1,437 million in the previous fiscal year, making it an urgent priority to clarify the direction of the business.

Last updated: July 19, 2026