ScoreWhy is Japan Airlines Co., Ltd. ?
1
Weak Long Term Fundamental Strength with a 21.20% 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
2
Poor long term growth as Net Sales has grown by an annual rate of 25.65% and Operating profit at 21.20% over the last 5 years
- ROCE(HY) Lowest at 8.89%
- INVENTORY TURNOVER RATIO(HY) Lowest at 9.77 times
- INTEREST(Q) At JPY 5,170 MM has Grown at 17.23%
3
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.62% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Japan Airlines Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Japan Airlines Co., Ltd.
-3.17%
0.56
28.59%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
25.65%
EBIT Growth (5y)
21.20%
EBIT to Interest (avg)
1.71
Debt to EBITDA (avg)
0.45
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
0.94
Tax Ratio
30.54%
Dividend Payout Ratio
31.27%
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
10.85%
ROE (avg)
5.26%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.02
EV to EBIT
6.04
EV to EBITDA
3.32
EV to Capital Employed
1.02
EV to Sales
0.61
PEG Ratio
0.28
Dividend Yield
NA
ROCE (Latest)
16.82%
ROE (Latest)
11.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 407,449 MM
CASH AND EQV(HY)
Highest at JPY 2,167,609 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -22.77 %
-27What is not working for the Company
ROCE(HY)
Lowest at 8.89%
INVENTORY TURNOVER RATIO(HY)
Lowest at 9.77 times
INTEREST(Q)
At JPY 5,170 MM has Grown at 17.23%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,037.87
RAW MATERIAL COST(Y)
Grown by 11.35% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.86 times
OPERATING PROFIT(Q)
Lowest at JPY 53,658 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 10.25 %
PRE-TAX PROFIT(Q)
Lowest at JPY 9,311 MM
NET PROFIT(Q)
Lowest at JPY 5,353 MM
EPS(Q)
Lowest at JPY 12.45
Here's what is working for Japan Airlines Co., Ltd.
Operating Cash Flow
Highest at JPY 407,449 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Cash and Eqv
Highest at JPY 2,167,609 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -22.77 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at JPY 42,814 MM
in the last five periodsMOJO 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.
Pre-Tax Profit
At JPY 9,311 MM has Fallen at -77.09%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 5,353 MM has Fallen at -80.23%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 5,170 MM has Grown at 17.23%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,037.87
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Inventory Turnover Ratio
Lowest at 9.77 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Operating Profit
Lowest at JPY 53,658 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 10.25 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 9,311 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 5,353 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 12.45
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Lowest at 8.86 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 11.35% (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
Non Operating Income
Highest at JPY 0.39 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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