Japan Airlines Co., Ltd. (9201) 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

Japan Airlines Co., Ltd.

Keihin Co., Ltd.

Skymark Airlines, Inc.

ANA HOLDINGS INC.

Star Flyer, Inc.

Why is Japan Airlines Co., Ltd. ?

Weak Long Term Fundamental Strength with a 13.28% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.26% signifying low profitability per unit of shareholders funds

Flat results in Jun 25

INTEREST(Q) At JPY 5,585 MM has Grown at 42.91%
INVENTORY TURNOVER RATIO(HY) Lowest at 11.01%
DEBTORS TURNOVER RATIO(HY) Lowest at 9.21%

With ROCE of 15.03%, it has a very attractive valuation with a 1.28 Enterprise value to Capital Employed

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 10.83%, its profits have risen by 17.4% ; the PEG ratio of the company is 0.7

Underperformed the market in the last 1 year

The stock has generated a return of 10.83% 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 Japan Airlines Co., Ltd. should be less than 10%
Overall Portfolio exposure to Airline should be less than 30%

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

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

Is Japan Airlines Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan Airlines Co., Ltd.

10.83%

0.39

22.00%

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)

5.60%

EBIT Growth (5y)

13.28%

EBIT to Interest (avg)

-7.22

Debt to EBITDA (avg)

0.59

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

0.91

Tax Ratio

29.29%

Dividend Payout Ratio

35.09%

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

7.11%

ROE (avg)

5.26%

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

1.32

EV to EBIT

8.51

EV to EBITDA

4.42

EV to Capital Employed

1.28

EV to Sales

0.78

PEG Ratio

0.66

Dividend Yield

ROCE (Latest)

15.03%

ROE (Latest)

11.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 351,034 MM

RAW MATERIAL COST(Y)

Fallen by -3.97% (YoY

CASH AND EQV(HY)

Highest at JPY 1,699,232 MM

DEBT-EQUITY RATIO (HY)

Lowest at -5.08 %

PRE-TAX PROFIT(Q)

At JPY 40,650 MM has Grown at 87.02%

NET PROFIT(Q)

At JPY 27,081 MM has Grown at 93.67%

-8What is not working for the Company

INTEREST(Q)

At JPY 5,585 MM has Grown at 42.91%

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.01%

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.21%

Here's what is working for Japan Airlines Co., Ltd.

Operating Cash Flow

Highest at JPY 351,034 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 40,650 MM has Grown at 87.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 27,081 MM has Grown at 93.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 1,699,232 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -5.08 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -3.97% (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

Highest at JPY 40,781 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Japan Airlines Co., Ltd.

Interest

At JPY 5,585 MM has Grown at 42.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 11.01%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 9.21%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio