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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hirata Corp.

Foster Electric Company, Limited

Doshisha Co., Ltd.

Tamron Co., Ltd.

Zojirushi Corp.

Casio Computer Co., Ltd.

Yokowo Co. Ltd.

Sharp Corp.

JANOME 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 0.46% and Operating profit at 13.95% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 1,487.5
NET SALES(Q) Lowest at JPY 7,999 MM
OPERATING PROFIT(Q) Lowest at JPY 119 MM

With ROE of 5.63%, it has a very attractive valuation with a 0.62 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 13.60%, its profits have risen by 19.1% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 13.60% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

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, High Return

Absolute

Risk Adjusted

Volatility

JANOME Corp.

13.6%

2.76

24.97%

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)

0.46%

EBIT Growth (5y)

13.95%

EBIT to Interest (avg)

30.83

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

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)

7.24%

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

0.62

EV to EBIT

7.28

EV to EBITDA

4.99

EV to Capital Employed

0.55

EV to Sales

0.45

PEG Ratio

0.44

Dividend Yield

0.05%

ROCE (Latest)

7.62%

ROE (Latest)

5.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

DEBT-EQUITY RATIO (HY)

Lowest at -12.63 %

-25What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,487.5

NET SALES(Q)

Lowest at JPY 7,999 MM

OPERATING PROFIT(Q)

Lowest at JPY 119 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.49 %

PRE-TAX PROFIT(Q)

Lowest at JPY -57 MM

NET PROFIT(Q)

Lowest at JPY -288 MM

EPS(Q)

Lowest at JPY -17.01

Here's what is working for JANOME Corp.

Debt-Equity Ratio

Lowest at -12.63 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for JANOME Corp.

Net Sales

At JPY 7,999 MM has Fallen at -11.95%

over average net sales of the previous four periods of JPY 9,085 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -57 MM has Fallen at -109.73%

over average net sales of the previous four periods of JPY 586 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -288 MM has Fallen at -158.2%

over average net sales of the previous four periods of JPY 494.85 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,487.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 7,999 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 119 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -288 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -17.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)