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.

Sankyu, Inc.

Central Japan Railway Co.

Kamigumi Co., Ltd.

Japan Airport Terminal Co., Ltd.

Hankyu Hanshin Holdings, Inc.

Nankai Electric Railway Co., Ltd.

Tokyu Corp.

Kintetsu Group Holdings Co., Ltd.

Nagoya Railroad Co., Ltd.

Sotetsu Holdings, Inc.

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

With a growth in Net Profit of 12.5%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 11.4%
INTEREST COVERAGE RATIO(Q) Highest at 1,493.44
RAW MATERIAL COST(Y) Fallen by -2.19% (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 40.76%, its profits have risen by 19.8% ; the PEG ratio of the company is 0.4

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.

40.76%

66.98

27.89%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

0.19

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

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

11What is working for the Company

ROCE(HY)

Highest at 11.4%

INTEREST COVERAGE RATIO(Q)

Highest at 1,493.44

RAW MATERIAL COST(Y)

Fallen by -2.19% (YoY

NET SALES(Q)

Highest at JPY 531,950 MM

OPERATING PROFIT(Q)

Highest at JPY 295,074 MM

PRE-TAX PROFIT(Q)

Highest at JPY 230,505 MM

NET PROFIT(Q)

Highest at JPY 161,086.69 MM

EPS(Q)

Highest at JPY 167.13

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 2,578,915 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.49 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.2 times

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

Interest Coverage Ratio

Highest at 1,493.44

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 531,950 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 295,074 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 230,505 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 161,086.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 167.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -2.19% (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 2,578,915 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 19.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 9.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio