Why is JAPAN ELECTRONIC MATERIALS CORP. ?
1
High Management Efficiency with a high ROE of 11.18%
2
Company has very low debt and has enough cash to service the debt requirements
3
Healthy long term growth as Operating profit has grown by an annual rate 34.66%
4
The company declared outstanding results in Mar'25 after flat results in Dec'24
- NET SALES(HY) At JPY 14,528 MM has Grown at 39.09%
- NET PROFIT(HY) At JPY 2,435.09 MM has Grown at 60.41%
- ROCE(HY) Highest at 13.35%
5
With ROE of 12.27%, it has a very attractive valuation with a 0.95 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 76.58%, its profits have risen by 450.7% ; the PEG ratio of the company is 0
6
Market Beating performance in long term as well as near term
- Along with generating 76.58% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to JAPAN ELECTRONIC MATERIALS CORP. should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is JAPAN ELECTRONIC MATERIALS CORP. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
JAPAN ELECTRONIC MATERIALS CORP.
76.58%
0.20
58.25%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
8.75%
EBIT Growth (5y)
34.66%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
0.66
Tax Ratio
25.33%
Dividend Payout Ratio
25.60%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.53%
ROE (avg)
11.18%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.95
EV to EBIT
4.49
EV to EBITDA
3.54
EV to Capital Employed
0.93
EV to Sales
0.84
PEG Ratio
0.02
Dividend Yield
NA
ROCE (Latest)
20.74%
ROE (Latest)
12.27%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
18What is working for the Company
NET SALES(HY)
At JPY 14,528 MM has Grown at 39.09%
NET PROFIT(HY)
At JPY 2,435.09 MM has Grown at 60.41%
ROCE(HY)
Highest at 13.35%
RAW MATERIAL COST(Y)
Fallen by -13.06% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 3.08%
OPERATING PROFIT MARGIN(Q)
Highest at 33.53 %
-5What is not working for the Company
NET SALES(Q)
At JPY 5,437 MM has Fallen at -8.73%
INTEREST(Q)
Highest at JPY 12 MM
Here's what is working for JAPAN ELECTRONIC MATERIALS CORP.
Net Profit
At JPY 2,435.09 MM has Grown at 60.41%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Operating Profit Margin
Highest at 33.53 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debtors Turnover Ratio
Highest at 3.08%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -13.06% (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 347 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 ELECTRONIC MATERIALS CORP.
Net Sales
At JPY 5,437 MM has Fallen at -8.73%
over average net sales of the previous four periods of JPY 5,957.25 MMMOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Interest
At JPY 12 MM has Grown at 20%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 12 MM
in the last five periods and Increased by 20% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






