ScoreWhy is East Japan Railway Co. ?
1
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)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 8.61% and Operating profit at 24.67% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 4.19% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 8.61% and Operating profit at 24.67% over the last 5 years
4
Flat results in Mar 26
- INTEREST(HY) At JPY 43,278 MM has Grown at 12.28%
- INVENTORY TURNOVER RATIO(HY) Lowest at 9.73 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.83 times
5
With ROCE of 4.72%, it has a very expensive valuation with a 1.15 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 8.98%, its profits have risen by 2.7% ; the PEG ratio of the company is 5.9
Real-Time Research ReportHow 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.
9.44%
138.10
24.27%
Japan Nikkei 225
88.41%
3.25
27.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.61%
EBIT Growth (5y)
24.67%
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
0
Institutional Holding
0.00%
ROCE (avg)
2.34%
ROE (avg)
4.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.39
EV to EBIT
24.34
EV to EBITDA
11.43
EV to Capital Employed
1.15
EV to Sales
3.03
PEG Ratio
5.90
Dividend Yield
NA
ROCE (Latest)
4.72%
ROE (Latest)
8.72%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
ROCE(HY)
Highest at 8.39%
RAW MATERIAL COST(Y)
Fallen by -17.27% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 161.19 %
DIVIDEND PER SHARE(HY)
Highest at JPY 3.83
NET SALES(Q)
Highest at JPY 844,657 MM
-9What is not working for the Company
INTEREST(HY)
At JPY 43,278 MM has Grown at 12.28%
INVENTORY TURNOVER RATIO(HY)
Lowest at 9.73 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.83 times
PRE-TAX PROFIT(Q)
At JPY 56,578 MM has Fallen at -32.92%
Here's what is working for East Japan Railway Co.
Net Sales
Highest at JPY 844,657 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 844,657 MM has Grown at 12.56%
over average net sales of the previous four periods of JPY 750,376.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Debt-Equity Ratio
Lowest at 161.19 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at JPY 3.83
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -17.27% (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 112,968 MM
in the last five periodsMOJO 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
At JPY 43,278 MM has Grown at 12.28%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 56,578 MM has Fallen at -32.92%
over average net sales of the previous four periods of JPY 84,338 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Inventory Turnover Ratio
Lowest at 9.73 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.83 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at JPY 0.58 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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