Japan Securities Finance Co., Ltd. (8511) 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

Okasan Securities Group, Inc.

Matsui Securities Co., Ltd.

Tokai Tokyo Financial Holdings, Inc.

Japan Exchange Group, Inc.

GMO Financial Holdings, Inc.

Nomura Holdings, Inc.

Japan Securities Finance Co., Ltd.

Daiwa Securities Group, Inc.

Aozora Bank Ltd.

Nihon M&A Center Holdings Inc.

Financial Partners Group Co., Ltd.

Why is Japan Securities Finance Co., Ltd. ?

Strong Long Term Fundamental Strength with a 41.17% CAGR growth in Operating Profits

Healthy long term growth as Net Sales has grown by an annual rate of 15.70% and Operating profit at 41.17%

With a growth in Operating Profit of 33.49%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 7.81%
DIVIDEND PER SHARE(HY) Highest at JPY 0.01
NET SALES(Q) Highest at JPY 31,307 MM

With ROE of 7.63%, it has a very attractive valuation with a 1.34 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 32.24%, its profits have risen by 29% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 32.24% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Japan Securities Finance Co., Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is Japan Securities Finance Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan Securities Finance Co., Ltd.

32.24%

1.64

22.98%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.70%

EBIT Growth (5y)

41.17%

EBIT to Interest (avg)

2.18

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

27.62%

Dividend Payout Ratio

67.42%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

4.80%

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

1.34

EV to EBIT

-176.66

EV to EBITDA

-174.49

EV to Capital Employed

0.99

EV to Sales

-115.09

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

-0.56%

ROE (Latest)

7.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

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

19What is working for the Company

ROCE(HY)

Highest at 7.81%

DIVIDEND PER SHARE(HY)

Highest at JPY 0.01

NET SALES(Q)

Highest at JPY 31,307 MM

RAW MATERIAL COST(Y)

Fallen by -0.72% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 0.01 times

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 114.1

INTEREST(Q)

Highest at JPY 25,033 MM

Here's what is working for Japan Securities Finance Co., Ltd.

Net Sales

Highest at JPY 31,307 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 31,307 MM has Grown at 27.02%

over average net sales of the previous four periods of JPY 24,647.75 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 0.01 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Debtors Turnover Ratio

Highest at 0.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.72% (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 Securities Finance Co., Ltd.

Interest

At JPY 25,033 MM has Grown at 44.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 114.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 25,033 MM

in the last five periods and Increased by 44.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)