Why is Japan Engine Corp. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Low Debt Company with Strong Long Term Fundamental Strength
3
The company has declared negative results in Mar'2025 after 10 consecutive positive quarters
- INTEREST(HY) At JPY 18.99 MM has Grown at 82.69%
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.24 times
4
With ROE of 30.92%, it has a very attractive valuation with a 2.94 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 251.00%, its profits have risen by 60.1%
5
Market Beating performance in long term as well as near term
- Along with generating 251.00% 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 Engine Corp. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Japan Engine Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Japan Engine Corp.
-100.0%
1.90
74.46%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
23.24%
EBIT Growth (5y)
88.87%
EBIT to Interest (avg)
82.31
Debt to EBITDA (avg)
0.14
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
1.60
Tax Ratio
20.74%
Dividend Payout Ratio
14.73%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.20%
ROE (avg)
16.66%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
2.94
EV to EBIT
7.46
EV to EBITDA
6.62
EV to Capital Employed
3.44
EV to Sales
1.32
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
46.05%
ROE (Latest)
30.92%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
3What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 2.54 times
RAW MATERIAL COST(Y)
Fallen by -14.45% (YoY
-9What is not working for the Company
INTEREST(HY)
At JPY 18.99 MM has Grown at 82.69%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.24 times
Here's what is working for Japan Engine Corp.
Inventory Turnover Ratio
Highest at 2.54 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -14.45% (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
Here's what is not working for Japan Engine Corp.
Interest
At JPY 18.99 MM has Grown at 82.69%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 4.24 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






