Why is JANOME Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 30.83
2
Poor long term growth as Net Sales has grown by an annual rate of -1.96% and Operating profit at -15.52% over the last 5 years
3
Positive results in Mar 26
- NET PROFIT(Q) At JPY 426.99 MM has Grown at 1,925.51%
- DEBT-EQUITY RATIO (HY) Lowest at -14.83 %
- DIVIDEND PAYOUT RATIO(Y) Highest at 209.14%
4
With ROE of 3.06%, it has a very attractive valuation with a 0.71 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 fallen by -62.4%
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 15.83% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%
How much should you hold?
- Overall Portfolio exposure to JANOME Corp. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is JANOME Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
JANOME Corp.
15.83%
2.79
32.40%
Japan Nikkei 225
75.22%
2.67
28.15%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.96%
EBIT Growth (5y)
-15.52%
EBIT to Interest (avg)
30.83
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.14
Sales to Capital Employed (avg)
0.98
Tax Ratio
14.44%
Dividend Payout Ratio
40.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.17%
ROE (avg)
7.29%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
0.71
EV to EBIT
10.00
EV to EBITDA
6.58
EV to Capital Employed
0.65
EV to Sales
0.50
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.50%
ROE (Latest)
3.06%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bullish
Technical Movement
11What is working for the Company
NET PROFIT(Q)
At JPY 426.99 MM has Grown at 1,925.51%
DEBT-EQUITY RATIO
(HY)
Lowest at -14.83 %
DIVIDEND PAYOUT RATIO(Y)
Highest at 209.14%
INVENTORY TURNOVER RATIO(HY)
Highest at 2.07 times
DIVIDEND PER SHARE(HY)
Highest at JPY 5.34
PRE-TAX PROFIT(Q)
At JPY 752 MM has Grown at 54.73%
-9What is not working for the Company
NET PROFIT(9M)
At JPY 267.08 MM has Grown at -80.27%
ROCE(HY)
Lowest at 1.71%
INTEREST(Q)
At JPY 14 MM has Grown at 40%
RAW MATERIAL COST(Y)
Grown by 5.77% (YoY
Here's what is working for JANOME Corp.
Net Profit
At JPY 426.99 MM has Grown at 1,925.51%
over average net sales of the previous four periods of JPY -23.39 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at -14.83 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Pre-Tax Profit
At JPY 752 MM has Grown at 54.73%
over average net sales of the previous four periods of JPY 486 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Inventory Turnover Ratio
Highest at 2.07 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at JPY 5.34
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Dividend Payout Ratio
Highest at 209.14%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for JANOME Corp.
Interest
At JPY 14 MM has Grown at 40%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 5.77% (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






