East Japan Railway Co. (9020) 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

West Japan Railway Co.

Tobu Railway Co., Ltd.

Odakyu Electric Railway Co., Ltd.

Kyushu Railway Co.

Keihan Holdings Co., Ltd.

Kobe Electric Railway Co. Ltd.

East Japan Railway Co.

Chichibu Railway Co., Ltd.

Keisei Electric Railway Co., Ltd.

Keikyu Corp.

Why is East Japan Railway Co. ?

Poor Management Efficiency with a low ROCE of 2.34%

The company has been able to generate a Return on Capital Employed (avg) of 2.34% signifying low profitability per unit of total capital (equity and debt)

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 -0.40% and Operating profit at -0.21% 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 4.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.40% and Operating profit at -0.21% over the last 5 years

Negative results in Dec 25

ROCE(HY) Lowest at 7.73%
CASH AND EQV(HY) Lowest at JPY 357,496 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 9.14 times

With ROCE of 4.97%, it has a very attractive valuation with a 1.07 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 18.14%, its profits have risen by 16.1%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is East Japan Railway Co. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

East Japan Railway Co.

18.14%

156.26

23.21%

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)

-0.40%

EBIT Growth (5y)

-0.21%

EBIT to Interest (avg)

0.22

Debt to EBITDA (avg)

9.98

Net Debt to Equity (avg)

1.65

Sales to Capital Employed (avg)

0.36

Tax Ratio

24.12%

Dividend Payout Ratio

30.26%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

2.34%

ROE (avg)

4.19%

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

1.18

EV to EBIT

21.49

EV to EBITDA

10.25

EV to Capital Employed

1.07

EV to Sales

2.80

PEG Ratio

Dividend Yield

ROCE (Latest)

4.97%

ROE (Latest)

8.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

RAW MATERIAL COST(Y)

Fallen by -0.24% (YoY

NET SALES(Q)

Highest at JPY 776,926 MM

OPERATING PROFIT(Q)

Highest at JPY 228,417 MM

-12What is not working for the Company

ROCE(HY)

Lowest at 7.73%

CASH AND EQV(HY)

Lowest at JPY 357,496 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.14 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.9 times

INTEREST(Q)

Highest at JPY 21,440 MM

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

Net Sales

Highest at JPY 776,926 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 228,417 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Raw Material Cost

Fallen by -0.24% (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

Depreciation

Highest at JPY 110,283 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

Highest at JPY 21,440 MM

in the last five periods and Increased by 5.42% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 357,496 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 9.14 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 3.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio