Japan Communications Inc. (9424) 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

Vision, Inc. ( Japan)

Forval Telecom, Inc.

Okinawa Cellular Telephone Co.

WirelessGate, Inc.

SoftBank Corp.

KDDI Corp.

Japan Communications Inc.

Why is Japan Communications Inc. ?

The company has declared negative results for the last 2 consecutive quarters

NET PROFIT(HY) At JPY 106.25 MM has Grown at -81.18%
OPERATING CASH FLOW(Y) Lowest at JPY 1,104.68 MM
ROCE(HY) Lowest at 15.51%

With ROE of 21.64%, it has a expensive valuation with a 4.11 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 -39.08%, its profits have risen by 20.3% ; the PEG ratio of the company is 1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.08% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How 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 Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Japan Communications Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan Communications Inc.

-100.0%

-1.21

34.94%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.22%

EBIT Growth (5y)

38.14%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

2.07

Tax Ratio

24.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

131.89%

ROE (avg)

27.42%

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

4.11

EV to EBIT

14.27

EV to EBITDA

11.53

EV to Capital Employed

6.31

EV to Sales

1.50

PEG Ratio

0.97

Dividend Yield

ROCE (Latest)

44.26%

ROE (Latest)

21.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

8What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 147.23 times

NET SALES(Q)

Highest at JPY 3,154.54 MM

CASH AND EQV(HY)

Highest at JPY 14,006.84 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 13.24 times

-31What is not working for the Company

NET PROFIT(HY)

At JPY 106.25 MM has Grown at -81.18%

OPERATING CASH FLOW(Y)

Lowest at JPY 1,104.68 MM

ROCE(HY)

Lowest at 15.51%

DEBT-EQUITY RATIO (HY)

Highest at -24.25 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,035.57

RAW MATERIAL COST(Y)

Grown by 12.27% (YoY

INTEREST(Q)

Highest at JPY 32.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.52 %

Here's what is working for Japan Communications Inc.

Net Sales

Highest at JPY 3,154.54 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 147.23 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at JPY 14,006.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 13.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Japan Communications Inc.

Net Profit

At JPY 106.25 MM has Grown at -81.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 1,104.68 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 32.05 MM has Grown at 204.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,035.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -24.25 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 32.05 MM

in the last five periods and Increased by 204.76% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 10.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 12.27% (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