JAC Recruitment Co., Ltd. (2124) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

UT Group Co., Ltd.

Open Up Group, Inc.

JAC Recruitment Co., Ltd.

dip Corp.

Altech Corp.

PERSOL Holdings Co., Ltd.

TechnoPro Holdings, Inc.

Pasona Group, Inc.

Fullcast Holdings Co., Ltd.

SMS Co., Ltd.

en Japan, Inc.

Why is JAC Recruitment Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 37.40%

Healthy long term growth as Net Sales has grown by an annual rate of 11.69%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 42.07%, it has a very attractive valuation with a 9.79 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 8.76%, its profits have risen by 15.8% ; the PEG ratio of the company is 1.5

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to JAC Recruitment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Diversified Commercial Services should be less than 30%

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

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

Is JAC Recruitment Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

JAC Recruitment Co., Ltd.

-100.0%

1.13

27.20%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.69%

EBIT Growth (5y)

12.06%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.89

Sales to Capital Employed (avg)

2.21

Tax Ratio

32.56%

Dividend Payout Ratio

73.82%

Pledged Shares

Institutional Holding

ROCE (avg)

371.75%

ROE (avg)

37.40%

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

9.79

EV to EBIT

14.24

EV to EBITDA

13.50

EV to Capital Employed

79.85

EV to Sales

3.54

PEG Ratio

1.47

Dividend Yield

ROCE (Latest)

560.61%

ROE (Latest)

42.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

7What is working for the Company

ROCE(HY)

Highest at 41.54%

DIVIDEND PER SHARE(HY)

Highest at JPY 17.57

RAW MATERIAL COST(Y)

Fallen by -0.83% (YoY

CASH AND EQV(HY)

Highest at JPY 42,184 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 17.57 times

-12What is not working for the Company

INTEREST(HY)

At JPY 10 MM has Grown at 11.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 38,860

DEBT-EQUITY RATIO (HY)

Highest at 0 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 767.2 times

OPERATING PROFIT(Q)

Lowest at JPY 1,943 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.16 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,779 MM

Here's what is working for JAC Recruitment Co., Ltd.

Dividend per share

Highest at JPY 17.57 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 42,184 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 17.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.83% (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 JAC Recruitment Co., Ltd.

Interest

At JPY 10 MM has Grown at 11.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 38,860

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 1,943 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 18.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,779 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Highest at 0 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 767.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio