Japanese stock alert

JAP

Afternoon Alert: Takeda Pharmaceutical hits 52-week low fourth time in one month 19 June 2018 13:00 JST

NEWS BITES - JAPAN

Takeda Pharmaceutical Co Ltd. (TO:4502) hit a 52-week low of JPY4,224.0 earlier today for the fourth time in the past one month, but later rebounded higher to JPY4,239.0. Trading volume was 1.5 times average so far today.

Current indications of bearish signals that support the trend in the unusual trading:

+ The negative 77.58 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The stock has underperformed 96% of the Japan market over the past 6 months.

+ In the last one month the stock has hit a new 52-week low four times and in the last three months nine times, pointing to a significant downtrend.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Return on Assets 2.7% [5.4%]

+ Return on Capital Employed 5.6% [9.0%]

+ Return on Equity 6.0% [8.1%]

Other Bearish Signals include:

+ Net profit margin has averaged 1.1% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

+ EBITDA growth has been negative in recent years.

Note

Bullish Signals:

Interest cover is less leveraged at 7.2 times.

Tobin's Q Ratio is 0.8. Compared with the rest of the market the stock is undervalued.

Oversold/Bullish:

The 0.4% premium to 12-month low of JPY4,224.0 against the 35.6% discount to high of JPY6,586.20 suggests the decline might be bottoming.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Year-on-Year Earnings Growth of 43.8% [16.8%]

Dividend yield of 4.2% [2.4%]

Price/Sales of 1.9 [3.1]

Takeda Pharmaceutical Co Ltd. (TO:4502; TYO:4502; T:4502; JP:4502)

ISIN: JP3463000004

Source: www.BuySellSignals.com