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

JAC Recruitment Co., Ltd.

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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 16.35%
Company has very low debt and has enough cash to service the debt requirements

With a growth in Operating Profit of 28.51%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 49.79%
INTEREST COVERAGE RATIO(Q) Highest at 112,975
RAW MATERIAL COST(Y) Fallen by -0.11% (YoY)

With ROE of 37.99%, it has a very attractive valuation with a 6.45 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 -15.83%, its profits have risen by 39.1% ; the PEG ratio of the company is 0.4

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.

-15.76%

1.08

25.39%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.35%

EBIT Growth (5y)

17.85%

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

67.95%

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

6.45

EV to EBIT

10.33

EV to EBITDA

9.94

EV to Capital Employed

-124.84

EV to Sales

2.62

PEG Ratio

0.43

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

37.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bearish

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

12What is working for the Company

ROCE(HY)

Highest at 49.79%

INTEREST COVERAGE RATIO(Q)

Highest at 112,975

RAW MATERIAL COST(Y)

Fallen by -0.11% (YoY

CASH AND EQV(HY)

Highest at JPY 41,112 MM

NET SALES(Q)

Highest at JPY 13,539 MM

OPERATING PROFIT(Q)

Highest at JPY 4,519 MM

OPERATING PROFIT MARGIN(Q)

Highest at 33.38 %

PRE-TAX PROFIT(Q)

Highest at JPY 4,395 MM

NET PROFIT(Q)

Highest at JPY 3,003 MM

EPS(Q)

Highest at JPY 18.96

-6What is not working for the Company

INTEREST(HY)

At JPY 9 MM has Grown at 12.5%

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

Interest Coverage Ratio

Highest at 112,975

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 13,539 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 4,519 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 33.38 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 4,395 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 3,003 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 18.96

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 41,112 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.11% (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

At JPY 129 MM has Grown at 57.32%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for JAC Recruitment Co., Ltd.

Interest

At JPY 9 MM has Grown at 12.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)