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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ANA HOLDINGS INC.

Japan Airlines Co., Ltd.

Keihin Co., Ltd.

Skymark Airlines, 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

Positive results in Dec 25

RAW MATERIAL COST(Y) Fallen by 0.38% (YoY)
CASH AND EQV(HY) Highest at JPY 1,849,932 MM
NET SALES(Q) Highest at JPY 529,838 MM

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 -0.04%, its profits have risen by 17.4% ; the PEG ratio of the company is 0.7

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -0.04% 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 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.

-0.04%

0.10

26.35%

Japan Nikkei 225

38.94%

1.38

28.28%

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)

0.92

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

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.38% (YoY

CASH AND EQV(HY)

Highest at JPY 1,849,932 MM

NET SALES(Q)

Highest at JPY 529,838 MM

OPERATING PROFIT(Q)

Highest at JPY 109,264 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.62 %

PRE-TAX PROFIT(Q)

Highest at JPY 67,107 MM

NET PROFIT(Q)

Highest at JPY 46,095 MM

EPS(Q)

Highest at JPY 106

-4What is not working for the Company

INTEREST(Q)

At JPY 4,488 MM has Grown at 34.77%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.2 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.93 times

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

Net Sales

Highest at JPY 529,838 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 109,264 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 20.62 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 67,107 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 46,095 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 106

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 1,849,932 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.38% (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

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

Interest

At JPY 4,488 MM has Grown at 34.77%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 10.2 times

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 8.93 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio