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

NSK Ltd.

Toyota Boshoku Corp.

JTEKT Corp.

Niterra Co., Ltd.

Toyoda Gosei Co., Ltd.

DENSO Corp.

TOKAI RIKA CO., LTD.

Aisin Corp.

NHK Spring Co., Ltd.

Stanley Electric Co., Ltd.

Koito Manufacturing Co., Ltd.

Why is JTEKT Corp. ?

With a growth in Net Profit of 62.54%, the company declared Very Positive results in Dec 25

The company has declared positive results in Jan 70 after 5 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -4.48% (YoY)
PRE-TAX PROFIT(Q) Highest at JPY 18,413 MM
NET PROFIT(Q) Highest at JPY 9,187 MM

With ROCE of 7.49%, it has a very attractive valuation with a 0.58 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 43.08%, its profits have fallen by -62.2%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

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.

43.08%

453.11

35.09%

Japan Nikkei 225

38.94%

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)

5.15%

EBIT Growth (5y)

6.72%

EBIT to Interest (avg)

7.56

Debt to EBITDA (avg)

1.16

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.85

Tax Ratio

47.99%

Dividend Payout Ratio

123.88%

Pledged Shares

Institutional Holding

ROCE (avg)

6.31%

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

0.51

EV to EBIT

7.70

EV to EBITDA

3.66

EV to Capital Employed

0.58

EV to Sales

0.27

PEG Ratio

Dividend Yield

0.09%

ROCE (Latest)

7.49%

ROE (Latest)

2.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

17What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.48% (YoY

PRE-TAX PROFIT(Q)

Highest at JPY 18,413 MM

NET PROFIT(Q)

Highest at JPY 9,187 MM

EPS(Q)

Highest at JPY 28.85

-3What is not working for the Company

INTEREST(Q)

At JPY 2,635 MM has Grown at 63.06%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.76 times

Here's what is working for JTEKT Corp.

Pre-Tax Profit

At JPY 18,413 MM has Grown at 113.53%

over average net sales of the previous four periods of JPY 8,623 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 18,413 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 9,187 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 9,187 MM has Grown at 87.06%

over average net sales of the previous four periods of JPY 4,911.25 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 28.85

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -4.48% (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 2,635 MM has Grown at 63.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 5.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio