J. FRONT RETAILING Co., Ltd. (3086) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AEON Kyushu Co., Ltd.

Izumi Co., Ltd.

Kintetsu Department Store Co. Ltd.

Takashimaya Co., Ltd.

J. FRONT RETAILING Co., Ltd.

Keio Corp.

Izutsuya Co., Ltd.

Isetan Mitsukoshi Holdings Ltd.

AEON Hokkaido Corp.

H2O Retailing Corp.

Matsuya Co., Ltd.

Why is J. FRONT RETAILING Co., Ltd. ?

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)

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

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

The company has declared negative results in Feb'2025 after 13 consecutive positive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 1,701.83
OPERATING CASH FLOW(Y) Lowest at JPY 70,568 MM
RAW MATERIAL COST(Y) Grown by 9.65% (YoY)

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 15.92%, its profits have risen by 33% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to J. FRONT RETAILING Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is J. FRONT RETAILING Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

J. FRONT RETAILING Co., Ltd.

15.92%

616.51

32.00%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

0.65

Tax Ratio

27.07%

Dividend Payout Ratio

32.43%

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

5.28%

ROE (avg)

5.17%

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

1.32

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

ROCE (Latest)

9.38%

ROE (Latest)

10.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

Mildly Bullish

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 17.1%

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,701.83

OPERATING CASH FLOW(Y)

Lowest at JPY 70,568 MM

RAW MATERIAL COST(Y)

Grown by 9.65% (YoY

INTEREST(Q)

Highest at JPY 1,479 MM

Here's what is working for J. FRONT RETAILING Co., Ltd.

Inventory Turnover Ratio

Highest at 17.1%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for J. FRONT RETAILING Co., Ltd.

Interest Coverage Ratio

Lowest at 1,701.83 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 1,479 MM has Grown at 39.53%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 70,568 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

Highest at JPY 1,479 MM

in the last five periods and Increased by 39.53% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 9.65% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales