Japan Post Bank Co., Ltd. (7182) 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

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Shizuoka Financial Group, Inc.

Resona Holdings, Inc.

Yamaguchi Financial Group, Inc.

Japan Post Bank Co., Ltd.

Why is Japan Post Bank Co., Ltd. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 15.34% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 8.70%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 15.34% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.12% signifying low profitability per unit of total assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 8.70%

ROCE(HY) Highest at 0.21%
NII(Q) Highest at JPY 348,266 MM
NET SALES(Q) Highest at JPY 599,499 MM

With ROA of 0.16%, it has a very attractive valuation with a 0.60 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 63.39%, its profits have risen by 16% ; the PEG ratio of the company is 0.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Japan Post Bank Co., Ltd. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Japan Post Bank Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Japan Post Bank Co., Ltd.

63.39%

774.40

34.53%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.80%

EBIT Growth (5y)

-28.55%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

50.61%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

ROE (avg)

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

0.60

EV to EBIT

-522.12

EV to EBITDA

-307.18

EV to Capital Employed

1.12

EV to Sales

-19.50

PEG Ratio

0.81

Dividend Yield

ROCE (Latest)

-0.21%

ROE (Latest)

4.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

15What is working for the Company

ROCE(HY)

Highest at 0.21%

NII(Q)

Highest at JPY 348,266 MM

NET SALES(Q)

Highest at JPY 599,499 MM

OPERATING PROFIT(Q)

Highest at JPY 144,531 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.11 %

NET PROFIT(Q)

Highest at JPY 137,276 MM

EPS(Q)

Highest at JPY 38.48

-5What is not working for the Company

INTEREST(9M)

At JPY 724,096 MM has Grown at 19.22%

ROCE(HY)

Lowest at 0.21%

Here's what is working for Japan Post Bank Co., Ltd.

NII

Highest at JPY 348,266 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JPY MM)

Net Sales

Highest at JPY 599,499 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 599,499 MM has Grown at 22.54%

over average net sales of the previous four periods of JPY 489,244.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 144,531 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 24.11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at JPY 137,276 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 38.48

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

CASA

Highest at 15.76%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for Japan Post Bank Co., Ltd.

Interest

At JPY 724,096 MM has Grown at 19.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)