JTEKT Corp. (6473) 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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Toyota Boshoku Corp.

Aisin Corp.

DENSO Corp.

TOKAI RIKA CO., LTD.

JTEKT Corp.

Koito Manufacturing Co., Ltd.

NHK Spring Co., Ltd.

Stanley Electric Co., Ltd.

Why is JTEKT Corp. ?

Weak Long Term Fundamental Strength with a 97.27% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 97.27% of over the last 5 years

RAW MATERIAL COST(Y) Fallen by -11.06% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 6.56 %
INVENTORY TURNOVER RATIO(HY) Highest at 6.48 times

With ROCE of 8.63%, it has a very attractive valuation with a 0.86 Enterprise value to Capital Employed

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 60.64%, its profits have risen by 60.5% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to JTEKT Corp. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is JTEKT Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

JTEKT Corp.

60.64%

572.21

35.43%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.07%

EBIT Growth (5y)

97.27%

EBIT to Interest (avg)

7.77

Debt to EBITDA (avg)

0.84

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.87

Tax Ratio

48.28%

Dividend Payout Ratio

159.51%

Pledged Shares

Institutional Holding

ROCE (avg)

7.60%

ROE (avg)

3.55%

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

0.84

EV to EBIT

9.97

EV to EBITDA

5.18

EV to Capital Employed

0.86

EV to Sales

0.40

PEG Ratio

0.33

Dividend Yield

ROCE (Latest)

8.63%

ROE (Latest)

3.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

13What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.06% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 6.56 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.48 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.72 times

PRE-TAX PROFIT(Q)

Highest at JPY 21,605 MM

NET PROFIT(Q)

Highest at JPY 13,833 MM

EPS(Q)

Highest at JPY 43.43

-5What is not working for the Company

NET PROFIT(HY)

At JPY 4,458 MM has Grown at -56.62%

INTEREST(Q)

At JPY 3,410 MM has Grown at 14.01%

Here's what is working for JTEKT Corp.

Pre-Tax Profit

At JPY 21,605 MM has Grown at 221.77%

over average net sales of the previous four periods of JPY 6,714.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 13,833 MM has Grown at 362.06%

over average net sales of the previous four periods of JPY 2,993.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 21,605 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 13,833 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 43.43

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 6.56 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 6.48 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.72 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 -11.06% (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 JTEKT Corp.

Interest

At JPY 3,410 MM has Grown at 14.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)