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. ?

With a growth in Net Profit of 49.23%, the company declared Very Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at JPY 388,546 MM
ROCE(HY) Highest at 12.15%
DIVIDEND PER SHARE(HY) Highest at JPY 8.66

With ROCE of 16.82%, it has a very attractive valuation with a 0.97 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 -1.69%, its profits have risen by 32.3% ; the PEG ratio of the company is 0.3

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you buy?

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.

-1.69%

0.32

26.69%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.65%

EBIT Growth (5y)

21.20%

EBIT to Interest (avg)

-7.22

Debt to EBITDA (avg)

0.59

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.93

Tax Ratio

29.29%

Dividend Payout Ratio

35.09%

Pledged Shares

Institutional Holding

0.07%

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

0.97

EV to EBIT

5.77

EV to EBITDA

3.17

EV to Capital Employed

0.97

EV to Sales

0.59

PEG Ratio

0.27

Dividend Yield

ROCE (Latest)

16.82%

ROE (Latest)

11.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 388,546 MM

ROCE(HY)

Highest at 12.15%

DIVIDEND PER SHARE(HY)

Highest at JPY 8.66

RAW MATERIAL COST(Y)

Fallen by -2% (YoY

CASH AND EQV(HY)

Highest at JPY 1,910,423 MM

DEBT-EQUITY RATIO (HY)

Lowest at -10.41 %

PRE-TAX PROFIT(Q)

At JPY 36,158 MM has Grown at 63.66%

-7What is not working for the Company

INTEREST(HY)

At JPY 8,898 MM has Grown at 118.46%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.18 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.66 times

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

Operating Cash Flow

Highest at JPY 388,546 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)

Dividend per share

Highest at JPY 8.66 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Pre-Tax Profit

At JPY 36,158 MM has Grown at 63.66%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 1,910,423 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -10.41 %

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 -2% (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 42,576 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 8,898 MM has Grown at 118.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 10.18 times and Fallen

In each half year 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 8.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income