JFE Systems, Inc. (4832) 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

Comture Corp.

SRA Holdings, Inc.

SB Technology Corp.

Smaregi, Inc.

Daikoku Denki Co., Ltd.

Zuken, Inc.

TechMatrix Corp.

JFE Systems, Inc.

I'LL Inc.

Computer Engineering & Consulting Ltd.

TRE Holdings Corp.

Why is JFE Systems, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.88%

Healthy long term growth as Operating profit has grown by an annual rate 9.58%
Company has very low debt and has enough cash to service the debt requirements

Negative results in Dec 25

INTEREST(HY) At JPY 2.3 MM has Grown at 13.83%
ROCE(HY) Lowest at 14.95%
NET SALES(Q) Lowest at JPY 14,405.24 MM

With ROE of 17.08%, it has a very attractive valuation with a 1.68 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 19.47%, its profits have risen by 9.9%

Underperformed the market in the last 1 year

The stock has generated a return of 19.47% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to JFE Systems, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is JFE Systems, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

JFE Systems, Inc.

19.47%

0.32

60.91%

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)

5.93%

EBIT Growth (5y)

9.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.69

Sales to Capital Employed (avg)

2.05

Tax Ratio

26.49%

Dividend Payout Ratio

35.21%

Pledged Shares

Institutional Holding

ROCE (avg)

54.65%

ROE (avg)

16.88%

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

1.68

EV to EBIT

4.30

EV to EBITDA

3.20

EV to Capital Employed

3.23

EV to Sales

0.51

PEG Ratio

Dividend Yield

ROCE (Latest)

75.15%

ROE (Latest)

17.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -24.02% (YoY

CASH AND EQV(HY)

Highest at JPY 51,471.61 MM

DEBT-EQUITY RATIO (HY)

Lowest at -68.57 %

OPERATING PROFIT MARGIN(Q)

Highest at 18.15 %

-13What is not working for the Company

INTEREST(HY)

At JPY 2.3 MM has Grown at 13.83%

ROCE(HY)

Lowest at 14.95%

NET SALES(Q)

Lowest at JPY 14,405.24 MM

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

Operating Profit Margin

Highest at 18.15 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 51,471.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -68.57 %

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 -24.02% (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

Depreciation

Highest at JPY 724.4 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for JFE Systems, Inc.

Interest

At JPY 2.3 MM has Grown at 13.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 14,405.24 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

At JPY 14,405.24 MM has Fallen at -16.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Non Operating Income

Highest at JPY 0.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income