JANOME Corp. (6445) 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

Doshisha Co., Ltd.

Casio Computer Co., Ltd.

Tamron Co., Ltd.

Yokowo Co. Ltd.

Hirata Corp.

Foster Electric Company, Limited

Sharp Corp.

JANOME Corp.

Zojirushi Corp.

Ushio, Inc.

YA-MAN Ltd.

Why is JANOME Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 30.83

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

Flat results in Dec 25

NET PROFIT(HY) At JPY -159.9 MM has Grown at -116.01%
ROCE(HY) Lowest at 1.86%
RAW MATERIAL COST(Y) Grown by 11.38% (YoY)

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 -2.71%, its profits have fallen by -62.4%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -2.71% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

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, Medium Return

Absolute

Risk Adjusted

Volatility

JANOME Corp.

10.38%

2.63

24.51%

Japan Nikkei 225

66.67%

2.61

25.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

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

Institutional Holding

ROCE (avg)

10.17%

ROE (avg)

7.29%

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

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

Dividend Yield

ROCE (Latest)

6.50%

ROE (Latest)

3.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

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

12What is working for the Company

NET PROFIT(Q)

At JPY 722 MM has Grown at 9,709.69%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DEBT-EQUITY RATIO (HY)

Lowest at -15.55 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.87 times

NET SALES(Q)

Highest at JPY 11,009 MM

PRE-TAX PROFIT(Q)

Highest at JPY 852 MM

EPS(Q)

Highest at JPY 40.47

-12What is not working for the Company

NET PROFIT(HY)

At JPY -159.9 MM has Grown at -116.01%

ROCE(HY)

Lowest at 1.86%

RAW MATERIAL COST(Y)

Grown by 11.38% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.24 times

Here's what is working for JANOME Corp.

Net Profit

At JPY 722 MM has Grown at 9,709.69%

over average net sales of the previous four periods of JPY 7.36 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 11,009 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 11,009 MM has Grown at 22.85%

over average net sales of the previous four periods of JPY 8,961.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 852 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 852 MM has Grown at 76.4%

over average net sales of the previous four periods of JPY 483 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 40.47

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at -15.55 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.87 times

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 JANOME Corp.

Debtors Turnover Ratio

Lowest at 5.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 11.38% (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