Why is en Japan, Inc. ?
1
Weak Long Term Fundamental Strength with a -8.31% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Operating profit has grown by an annual rate -8.31% of over the last 5 years
3
With ROE of 11.40%, it has a very expensive valuation with a 1.79 Price to Book Value
- 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 -23.01%, its profits have fallen by -55%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -23.01% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
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 Diversified Commercial Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is en Japan, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
en Japan, Inc.
-23.01%
-1.40
34.50%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality key factors
Factor
Value
Sales Growth (5y)
5.77%
EBIT Growth (5y)
-8.31%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.78
Sales to Capital Employed (avg)
1.95
Tax Ratio
27.81%
Dividend Payout Ratio
49.24%
Pledged Shares
0
Institutional Holding
0.12%
ROCE (avg)
82.24%
ROE (avg)
14.51%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.79
EV to EBIT
7.94
EV to EBITDA
4.72
EV to Capital Employed
2.74
EV to Sales
0.66
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
34.54%
ROE (Latest)
11.40%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
21What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 32,771.43
OPERATING PROFIT(Q)
Highest at JPY 2,294 MM
OPERATING PROFIT MARGIN(Q)
Highest at 17.23 %
PRE-TAX PROFIT(Q)
Highest at JPY 6,489 MM
NET PROFIT(Q)
Highest at JPY 4,369.97 MM
EPS(Q)
Highest at JPY 109.69
-8What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 41,080 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.16 times
NET SALES(Q)
Lowest at JPY 13,314 MM
Here's what is working for en Japan, Inc.
Pre-Tax Profit
At JPY 6,489 MM has Grown at 364.83%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 4,369.97 MM has Grown at 360.48%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Interest Coverage Ratio
Highest at 32,771.43
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at JPY 2,294 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 17.23 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 6,489 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 4,369.97 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 109.69
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Here's what is not working for en Japan, Inc.
Net Sales
Lowest at JPY 13,314 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Net Sales
Fallen at -11.19%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Cash and Eqv
Lowest at JPY 41,080 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 10.16 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 0.8 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






