The Japan Steel Works Ltd. (5631) 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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Okuma Corp.

The Japan Steel Works Ltd.

Why is The Japan Steel Works Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.77% and Operating profit at 13.31% over the last 5 years

Negative results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 4.96 %
INVENTORY TURNOVER RATIO(HY) Lowest at 1.56 times
INTEREST COVERAGE RATIO(Q) Lowest at 3,683.1

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 85.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.64% returns

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 Industrial Manufacturing)

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

Is The Japan Steel Works Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Japan Steel Works Ltd.

-7.64%

1.26

54.60%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.77%

EBIT Growth (5y)

13.31%

EBIT to Interest (avg)

65.29

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

1.11

Tax Ratio

22.11%

Dividend Payout Ratio

35.24%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

13.17%

ROE (avg)

8.22%

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

3.77

EV to EBIT

32.45

EV to EBITDA

23.64

EV to Capital Employed

3.92

EV to Sales

2.73

PEG Ratio

6.61

Dividend Yield

ROCE (Latest)

12.07%

ROE (Latest)

10.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 82.15%

RAW MATERIAL COST(Y)

Fallen by -16.22% (YoY

OPERATING PROFIT(Q)

Highest at JPY 10,460 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.19 %

-18What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 4.96 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.56 times

INTEREST COVERAGE RATIO(Q)

Lowest at 3,683.1

INTEREST(Q)

Highest at JPY 284 MM

EPS(Q)

Lowest at JPY 58.43

Here's what is working for The Japan Steel Works Ltd.

Operating Profit

Highest at JPY 10,460 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 14.19 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend Payout Ratio

Highest at 82.15%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -16.22% (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 2,678 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 The Japan Steel Works Ltd.

Interest

At JPY 284 MM has Grown at 88.08%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,683.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 4.96 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.56 times 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 284 MM

in the last five periods and Increased by 88.08% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY 58.43

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)