Why is J. FRONT RETAILING Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 5.28%
- The company has been able to generate a Return on Capital Employed (avg) of 5.28% 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 6.88% and Operating profit at 84.50% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 5.65% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 6.88% and Operating profit at 84.50% over the last 5 years
4
The company has declared Negative results for the last 6 consecutive quarters
- INTEREST(HY) At JPY 3,304 MM has Grown at 30.13%
- ROCE(HY) Lowest at 6.75%
- CASH AND EQV(HY) Lowest at JPY 61,691 MM
5
With ROCE of 8.72%, it has a very expensive valuation with a 1.38 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 34.48%, its profits have fallen by -32.4%
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.
34.51%
749.78
35.30%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality key factors
Factor
Value
Sales Growth (5y)
6.88%
EBIT Growth (5y)
84.50%
EBIT to Interest (avg)
7.61
Debt to EBITDA (avg)
2.54
Net Debt to Equity (avg)
0.47
Sales to Capital Employed (avg)
0.71
Tax Ratio
37.04%
Dividend Payout Ratio
47.82%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
6.71%
ROE (avg)
5.65%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
1.53
EV to EBIT
15.83
EV to EBITDA
8.44
EV to Capital Employed
1.38
EV to Sales
1.80
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.72%
ROE (Latest)
6.76%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -5.84% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at 23.75 %
-12What is not working for the Company
INTEREST(HY)
At JPY 3,304 MM has Grown at 30.13%
ROCE(HY)
Lowest at 6.75%
CASH AND EQV(HY)
Lowest at JPY 61,691 MM
NET SALES(Q)
Lowest at JPY 106,435 MM
Here's what is working for J. FRONT RETAILING Co., Ltd.
Operating Profit Margin
Highest at 23.75 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Raw Material Cost
Fallen by -5.84% (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 J. FRONT RETAILING Co., Ltd.
Interest
At JPY 3,304 MM has Grown at 30.13%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
Lowest at JPY 106,435 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Cash and Eqv
Lowest at JPY 61,691 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






