JAPAN FOUNDATION ENGINEERING CO., LTD. (1914) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DAISUE CONSTRUCTION CO., LTD.

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Tanabe Engineering Corp.

Nakano Corp.

JAPAN FOUNDATION ENGINEERING CO., LTD.

Dai-Ichi Cutter Kogyo KK

Br. Holdings Corp.

Why is JAPAN FOUNDATION ENGINEERING CO., LTD. ?

Poor Management Efficiency with a low ROE of 3.23%

The company has been able to generate a Return on Equity (avg) of 3.23% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.50% 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

Underperformed the market in the last 1 year

The stock has generated a return of 4.58% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 66.67%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is JAPAN FOUNDATION ENGINEERING CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

JAPAN FOUNDATION ENGINEERING CO., LTD.

4.58%

0.17

24.57%

Japan Nikkei 225

65.71%

2.62

25.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.50%

EBIT Growth (5y)

9.91%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.01

Tax Ratio

25.18%

Dividend Payout Ratio

32.38%

Pledged Shares

Institutional Holding

ROCE (avg)

5.16%

ROE (avg)

3.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.89

EV to EBIT

14.38

EV to EBITDA

8.02

EV to Capital Employed

0.89

EV to Sales

0.81

PEG Ratio

Dividend Yield

ROCE (Latest)

6.20%

ROE (Latest)

4.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What 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 MM

MOJO 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 periods

MOJO 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 MM

MOJO 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 periods

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio