Why is J. FRONT RETAILING Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.78%
- The company has been able to generate a Return on Capital Employed (avg) of 4.78% signifying low profitability per unit of total capital (equity and debt)
2
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 -1.67% and Operating profit at 3.35% 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 5.17% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -1.67% and Operating profit at 3.35% over the last 5 years
4
The company has declared negative results in Feb'2025 after 13 consecutive positive quarters
- INTEREST(HY) At JPY 3,156 MM has Grown at 47.41%
- NET PROFIT(HY) At JPY 14,201 MM has Grown at -44.79%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,615.61
5
With ROCE of 9.38%, it has a very attractive valuation with a 1.23 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 25.10%, its profits have risen by 33% ; the PEG ratio of the company is 0.4
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 Retailing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is J. FRONT RETAILING Co., Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
J. FRONT RETAILING Co., Ltd.
-100.0%
666.13
31.82%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.67%
EBIT Growth (5y)
3.35%
EBIT to Interest (avg)
6.28
Debt to EBITDA (avg)
3.10
Net Debt to Equity (avg)
0.39
Sales to Capital Employed (avg)
0.68
Tax Ratio
27.07%
Dividend Payout Ratio
32.43%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
5.28%
ROE (avg)
5.17%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.32
EV to EBIT
13.07
EV to EBITDA
7.06
EV to Capital Employed
1.23
EV to Sales
1.58
PEG Ratio
0.39
Dividend Yield
NA
ROCE (Latest)
9.38%
ROE (Latest)
10.13%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -6.36% (YoY
-19What is not working for the Company
INTEREST(HY)
At JPY 3,156 MM has Grown at 47.41%
NET PROFIT(HY)
At JPY 14,201 MM has Grown at -44.79%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,615.61
OPERATING CASH FLOW(Y)
Lowest at JPY 65,842 MM
CASH AND EQV(HY)
Lowest at JPY 73,568 MM
Here's what is working for J. FRONT RETAILING Co., Ltd.
Raw Material Cost
Fallen by -6.36% (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 11,825 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 J. FRONT RETAILING Co., Ltd.
Interest
At JPY 3,156 MM has Grown at 47.41%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,615.61 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At JPY 14,201 MM has Grown at -44.79%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Operating Cash Flow
Lowest at JPY 65,842 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Cash and Eqv
Lowest at JPY 73,568 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






