JDC Corp. (Japan) (1887) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Toenec Corp.

RAIZNEXT Corp.

Yurtec Corp.

Shinnihon Corp.

CTI Engineering Co., Ltd.

Sumitomo Mitsui Construction Co., Ltd.

Oyo Corp.

Nichireki Co., Ltd.

JDC Corp. (Japan)

Taihei Dengyo Kaisha, Ltd.

Daiho Corp.

Why is JDC Corp. (Japan) ?

High Management Efficiency with a high ROE of 5.18%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.85

Poor long term growth as Operating profit has grown by an annual rate -21.92% of over the last 5 years

Flat results in May 25

NET SALES(HY) At JPY 61,347 MM has Grown at -13.12%
PRE-TAX PROFIT(Q) At JPY 705 MM has Fallen at -80.8%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.57%

With ROE of 1.22%, it has a very attractive valuation with a 0.64 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 2.14%, its profits have risen by 120% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 2.14% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to JDC Corp. (Japan) 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 JDC Corp. (Japan) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

JDC Corp. (Japan)

0.98%

0.60

22.31%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.04%

EBIT Growth (5y)

-21.92%

EBIT to Interest (avg)

11.11

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.34

Tax Ratio

37.29%

Dividend Payout Ratio

132.46%

Pledged Shares

Institutional Holding

ROCE (avg)

7.79%

ROE (avg)

5.18%

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

0.64

EV to EBIT

19.60

EV to EBITDA

11.23

EV to Capital Employed

0.72

EV to Sales

0.48

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

3.65%

ROE (Latest)

1.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

11What is working for the Company

NET PROFIT(Q)

At JPY 761 MM has Grown at 669.64%

DIVIDEND PAYOUT RATIO(Y)

Highest at 156.55%

-20What is not working for the Company

NET SALES(HY)

At JPY 61,347 MM has Grown at -13.12%

PRE-TAX PROFIT(Q)

At JPY 705 MM has Fallen at -80.8%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.57%

RAW MATERIAL COST(Y)

Grown by 15.4% (YoY

CASH AND EQV(HY)

Lowest at JPY 35,287 MM

INTEREST(Q)

Highest at JPY 129 MM

Here's what is working for JDC Corp. (Japan)

Net Profit

At JPY 761 MM has Grown at 669.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Dividend Payout Ratio

Highest at 156.55%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for JDC Corp. (Japan)

Pre-Tax Profit

At JPY 705 MM has Fallen at -80.8%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

At JPY 61,347 MM has Grown at -13.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 129 MM has Grown at 17.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 5.57% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 129 MM

in the last five periods and Increased by 17.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 35,287 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 15.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales