ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is JAPAN FOUNDATION ENGINEERING CO., LTD. ?
1
Poor Management Efficiency with a low ROE of 3.27%
- The company has been able to generate a Return on Equity (avg) of 3.27% signifying low profitability per unit of shareholders funds
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 4.65% over the last 5 years
- NET SALES(HY) At JPY 14,166.18 MM has Grown at -11.04%
- DEBT-EQUITY RATIO (HY) Highest at 5.77 %
- INVENTORY TURNOVER RATIO(HY) Lowest at 23.31 times
4
With ROE of 6.27%, it has a very attractive valuation with a 0.80 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 4.80%, its profits have risen by 55.6% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 4.80% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.30%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to JAPAN FOUNDATION ENGINEERING CO., LTD. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is JAPAN FOUNDATION ENGINEERING CO., LTD. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
JAPAN FOUNDATION ENGINEERING CO., LTD.
-100.0%
0.10
26.90%
Japan Nikkei 225
40.96%
1.35
28.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.65%
EBIT Growth (5y)
12.87%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
1.02
Tax Ratio
25.18%
Dividend Payout Ratio
32.38%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.16%
ROE (avg)
3.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.80
EV to EBIT
9.31
EV to EBITDA
5.64
EV to Capital Employed
0.79
EV to Sales
0.58
PEG Ratio
0.23
Dividend Yield
0.08%
ROCE (Latest)
8.50%
ROE (Latest)
6.27%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET PROFIT(Q)
At JPY 675.02 MM has Grown at 145.72%
RAW MATERIAL COST(Y)
Fallen by -17.14% (YoY
OPERATING PROFIT(Q)
Highest at JPY 828.08 MM
PRE-TAX PROFIT(Q)
At JPY 771.13 MM has Grown at 71.88%
-19What is not working for the Company
NET SALES(HY)
At JPY 14,166.18 MM has Grown at -11.04%
DEBT-EQUITY RATIO
(HY)
Highest at 5.77 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 23.31 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.1 times
INTEREST(Q)
Highest at JPY 17.83 MM
Here's what is working for JAPAN FOUNDATION ENGINEERING CO., LTD.
Net Profit
At JPY 675.02 MM has Grown at 145.72%
over average net sales of the previous four periods of JPY 274.71 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Operating Profit
Highest at JPY 828.08 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
At JPY 771.13 MM has Grown at 71.88%
over average net sales of the previous four periods of JPY 448.65 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Raw Material Cost
Fallen by -17.14% (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 FOUNDATION ENGINEERING CO., LTD.
Interest
At JPY 17.83 MM has Grown at 17.06%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 14,166.18 MM has Grown at -11.04%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Debt-Equity Ratio
Highest at 5.77 % and Grown
In each half year 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
Interest
Highest at JPY 17.83 MM
in the last five periods and Increased by 17.06% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 23.31 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.1 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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