ScoreWhy is The Japan Steel Works Ltd. ?
1
Weak Long Term Fundamental Strength with a 13.31% CAGR growth in Operating Profits over the last 5 years
2
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
3
The company has declared Negative results for the last 3 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Lowest at 2,555.05
- CASH AND EQV(HY) Lowest at JPY 153,809 MM
- DEBT-EQUITY RATIO (HY) Highest at 4.64 %
4
With ROE of 10.17%, it has a fair valuation with a 2.83 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 -22.04%, its profits have risen by 5.6% ; the PEG ratio of the company is 5
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.04% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to The Japan Steel Works Ltd. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is The Japan Steel Works Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
The Japan Steel Works Ltd.
-20.77%
1.25
55.11%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.77%
EBIT Growth (5y)
13.31%
EBIT to Interest (avg)
64.80
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.17
Sales to Capital Employed (avg)
1.08
Tax Ratio
30.38%
Dividend Payout Ratio
35.20%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
13.57%
ROE (avg)
8.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
2.83
EV to EBIT
24.28
EV to EBITDA
17.69
EV to Capital Employed
2.93
EV to Sales
2.04
PEG Ratio
4.97
Dividend Yield
NA
ROCE (Latest)
12.07%
ROE (Latest)
10.17%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 5.24 times
RAW MATERIAL COST(Y)
Fallen by -22.29% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at 14.36 %
NET PROFIT(Q)
Highest at JPY 5,936.77 MM
EPS(Q)
Highest at JPY 80.59
-19What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 2,555.05
CASH AND EQV(HY)
Lowest at JPY 153,809 MM
DEBT-EQUITY RATIO
(HY)
Highest at 4.64 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.43 times
NET SALES(Q)
Lowest at JPY 58,172 MM
INTEREST(Q)
Highest at JPY 327 MM
Here's what is working for The Japan Steel Works Ltd.
Debtors Turnover Ratio
Highest at 5.24 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Operating Profit Margin
Highest at 14.36 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at JPY 5,936.77 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 80.59
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -22.29% (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 The Japan Steel Works Ltd.
Net Sales
At JPY 58,172 MM has Fallen at -13.88%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Interest
At JPY 327 MM has Grown at 15.14%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 2,555.05
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 58,172 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 327 MM
in the last five periods and Increased by 15.14% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 153,809 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 4.64 %
in the last five Semi-Annual periodsMOJO 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 1.43 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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