JFE Holdings, Inc. (5411) 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

Okaya & Co., Ltd.

Yamato Kogyo Co., Ltd.

Sojitz Corp.

Toyota Tsusho Corp.

Yodogawa Steel Works, Ltd.

Daido Steel Co., Ltd.

Kobe Steel, Ltd.

Tokyo Steel Manufacturing Co., Ltd.

NIPPON STEEL CORP.

JFE Holdings, Inc.

Sanyo Special Steel Co., Ltd.

Why is JFE Holdings, Inc. ?

Poor Management Efficiency with a low ROCE of 4.71%

The company has been able to generate a Return on Capital Employed (avg) of 4.71% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 26.22% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 4.71% signifying low profitability per unit of total capital (equity and debt)

With a fall in Net Sales of -6.29%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at JPY 0 MM
INTEREST(HY) At JPY 15,287 MM has Grown at 15.75%
PRE-TAX PROFIT(Q) At JPY 30,398 MM has Fallen at -62.42%

Below par performance in long term as well as near term

Along with generating -3.29% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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 Ferrous Metals)

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

Is JFE Holdings, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

JFE Holdings, Inc.

-3.29%

536.68

27.58%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.44%

EBIT Growth (5y)

26.22%

EBIT to Interest (avg)

9.94

Debt to EBITDA (avg)

4.09

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

1.16

Tax Ratio

44.33%

Dividend Payout Ratio

69.24%

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

4.73%

ROE (avg)

7.42%

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

0.42

EV to EBIT

21.57

EV to EBITDA

7.00

EV to Capital Employed

0.65

EV to Sales

0.55

PEG Ratio

Dividend Yield

ROCE (Latest)

3.00%

ROE (Latest)

5.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -18.33% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 68.8 %

OPERATING PROFIT(Q)

Highest at JPY 102,228 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.91 %

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 0 MM

INTEREST(HY)

At JPY 15,287 MM has Grown at 15.75%

PRE-TAX PROFIT(Q)

At JPY 30,398 MM has Fallen at -62.42%

ROCE(HY)

Lowest at 2.08%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.84 times

NET PROFIT(Q)

Fallen at -43.56%

Here's what is working for JFE Holdings, Inc.

Operating Profit

Highest at JPY 102,228 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 8.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 68.8 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -18.33% (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 JFE Holdings, Inc.

Pre-Tax Profit

At JPY 30,398 MM has Fallen at -62.42%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 15,287 MM has Grown at 15.75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 0 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Net Profit

Fallen at -43.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 4.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio