Central Japan Railway Co. (9022) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AZ-COM Maruwa Holdings, Inc.

Sankyu, Inc.

Central Japan Railway Co.

Kamigumi Co., Ltd.

Japan Airport Terminal Co., Ltd.

Sotetsu Holdings, Inc.

Tokyu Corp.

Kintetsu Group Holdings Co., Ltd.

Hankyu Hanshin Holdings, Inc.

Nankai Electric Railway Co., Ltd.

Nagoya Railroad Co., Ltd.

Why is Central Japan Railway Co. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.14% and Operating profit at 1.34% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.07% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.14% and Operating profit at 1.34% over the last 5 years

Positive results in Jun 25

ROCE(HY) Highest at 10.76%
INTEREST COVERAGE RATIO(Q) Highest at 1,378.07
RAW MATERIAL COST(Y) Fallen by -6.68% (YoY)

With ROCE of 9.55%, it has a attractive valuation with a 0.81 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 47.05%, its profits have risen by 19.8% ; the PEG ratio of the company is 0.4

Market Beating Performance

The stock has generated a return of 47.05% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Central Japan Railway Co. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Central Japan Railway Co. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Central Japan Railway Co.

47.05%

77.08

25.71%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.14%

EBIT Growth (5y)

1.34%

EBIT to Interest (avg)

4.25

Debt to EBITDA (avg)

32.88

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

0.18

Tax Ratio

28.10%

Dividend Payout Ratio

6.65%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

4.79%

ROE (avg)

5.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.70

EV to EBIT

8.49

EV to EBITDA

6.55

EV to Capital Employed

0.81

EV to Sales

3.26

PEG Ratio

0.35

Dividend Yield

ROCE (Latest)

9.55%

ROE (Latest)

10.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at 10.76%

INTEREST COVERAGE RATIO(Q)

Highest at 1,378.07

RAW MATERIAL COST(Y)

Fallen by -6.68% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 56.59 %

PRE-TAX PROFIT(Q)

Highest at JPY 207,320 MM

NET PROFIT(Q)

Highest at JPY 145,209.18 MM

EPS(Q)

Highest at JPY 147.88

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 2,919,853 MM

DEBT-EQUITY RATIO (HY)

Highest at 73.01 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 20.32%

Here's what is working for Central Japan Railway Co.

Interest Coverage Ratio

Highest at 1,378.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 56.59 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 207,320 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 145,209.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 147.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -6.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Central Japan Railway Co.

Cash and Eqv

Lowest at JPY 2,919,853 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 73.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 20.32%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio