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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AZ-COM Maruwa Holdings, Inc.

Central Japan Railway Co.

Kamigumi Co., Ltd.

Hankyu Hanshin Holdings, Inc.

Sankyu, Inc.

Japan Airport Terminal Co., Ltd.

Sotetsu Holdings, Inc.

Tokyu Corp.

Kintetsu Group Holdings Co., Ltd.

Nankai Electric Railway Co., Ltd.

Nagoya Railroad Co., Ltd.

Why is Central Japan Railway Co. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 14.62% and Operating profit at 79.72% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.06% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.62% and Operating profit at 79.72% over the last 5 years

Flat results in Mar 26

CASH AND EQV(HY) Lowest at JPY 2,464,575 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 8.98 times

With ROCE of 9.55%, it has a fair valuation with a 0.93 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 7.89%, its profits have risen by 22.5% ; the PEG ratio of the company is 0.4

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 7.89% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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.

7.89%

56.57

26.86%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.62%

EBIT Growth (5y)

79.72%

EBIT to Interest (avg)

4.25

Debt to EBITDA (avg)

32.88

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

0.19

Tax Ratio

28.10%

Dividend Payout Ratio

6.65%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

4.79%

ROE (avg)

5.06%

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

0.88

EV to EBIT

9.75

EV to EBITDA

7.78

EV to Capital Employed

0.93

EV to Sales

4.02

PEG Ratio

0.36

Dividend Yield

ROCE (Latest)

9.55%

ROE (Latest)

11.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

3What is working for the Company

ROCE(HY)

Highest at 11.44%

RAW MATERIAL COST(Y)

Fallen by -5.6% (YoY

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 2,464,575 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.98 times

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

Raw Material Cost

Fallen by -5.6% (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 2,464,575 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 8.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.08 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income