ScoreWhy is Japan Communications Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 27.59%
- Healthy long term growth as Net Sales has grown by an annual rate of 21.35% and Operating profit at 27.94%
- Company has very low debt and has enough cash to service the debt requirements
2
Flat results in Jun 25
- ROCE(HY) Lowest at 25.66%
- INTEREST COVERAGE RATIO(Q) Lowest at 4,436.74
- RAW MATERIAL COST(Y) Grown by 6% (YoY)
3
With ROE of 22.00%, it has a expensive valuation with a 7.30 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 4.29%, its profits have fallen by -15.7%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 4.29% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Japan Communications Inc. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Japan Communications Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Japan Communications Inc.
2.17%
-0.49
42.54%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.35%
EBIT Growth (5y)
27.94%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.60
Sales to Capital Employed (avg)
2.61
Tax Ratio
16.38%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
120.24%
ROE (avg)
27.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
7.30
EV to EBIT
26.57
EV to EBITDA
22.04
EV to Capital Employed
16.85
EV to Sales
2.77
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
63.40%
ROE (Latest)
22.00%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
NET SALES(Q)
Highest at JPY 2,737.94 MM
NET PROFIT(9M)
Higher at JPY 874.06 MM
CASH AND EQV(HY)
Highest at JPY 8,560.76 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 111.21%
DEBTORS TURNOVER RATIO(HY)
Highest at 12.31%
-17What is not working for the Company
ROCE(HY)
Lowest at 25.66%
INTEREST COVERAGE RATIO(Q)
Lowest at 4,436.74
RAW MATERIAL COST(Y)
Grown by 6% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -55.75 %
INTEREST(Q)
Highest at JPY 8.69 MM
Here's what is working for Japan Communications Inc.
Net Sales
Highest at JPY 2,737.94 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
At JPY 2,737.94 MM has Grown at 31.59%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 8,560.76 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 111.21%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 12.31%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Profit
Higher at JPY 874.06 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Depreciation
Highest at JPY 62.38 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 Communications Inc.
Interest
At JPY 8.69 MM has Grown at 575.97%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 4,436.74
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 8.69 MM
in the last five periods and Increased by 575.97% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -55.75 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 6% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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