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
- NET PROFIT(HY) At JPY 1,975.35 MM has Grown at -37.27%
- INTEREST(Q) At JPY 10.2 MM has Grown at 18.74%
- DEBT-EQUITY RATIO (HY) Highest at -3.62 %
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 229.96%, its profits have risen by 60.1%
5
Consistent Returns over the last 3 years
- Along with generating 229.96% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods
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.
222.2%
2.08
73.36%
Japan Nikkei 225
28.54%
1.14
25.81%
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)
1.61
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
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.9% (YoY
CASH AND EQV(HY)
Highest at JPY 12,436.38 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 2.45%
NET SALES(Q)
At JPY 8,332.1 MM has Grown at 15.47%
PRE-TAX PROFIT(Q)
Highest at JPY 1,891 MM
-14What is not working for the Company
NET PROFIT(HY)
At JPY 1,975.35 MM has Grown at -37.27%
INTEREST(Q)
At JPY 10.2 MM has Grown at 18.74%
DEBT-EQUITY RATIO
(HY)
Highest at -3.62 %
Here's what is working for Japan Engine Corp.
Net Sales
At JPY 8,332.1 MM has Grown at 15.47%
over average net sales of the previous four periods of JPY 7,215.67 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 1,891 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Cash and Eqv
Highest at JPY 12,436.38 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 2.45%
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 0.9% (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 238.66 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 Engine Corp.
Interest
At JPY 10.2 MM has Grown at 18.74%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 1,975.35 MM has Grown at -37.27%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Interest
Highest at JPY 10.2 MM
in the last five periods and Increased by 18.74% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -3.62 %
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






