Japanese stock alert

JAP

CLOSING UPDATE: Fast Retailing down 2.0% in 2 days 21 July 2017 16:45 JST

NEWS BITES - JAPAN

This is an end of day Alert, produced after today's Japan market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Fast Retailing, the 2nd largest retail trade company by market capitalisation in the Japan's, extended its slide on Friday, shedding an additional JPY250.0 (or 0.7%) to trade at JPY33,250.0. Trading volume was 95% of average at the end of the day. The shares have fallen JPY680.0 (or 2.0%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.4% in the same period.

Technical indicators complementing today's significant downtrend:

+ The negative 887.08 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ In the Japan market, the stock's relative price strength percentile is slipping at 9 for 6 months, 6 for 3 months and 3 for 1 month.

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

Overvaluation:

+ Price/Earnings of 54.7 [28.1]

+ Price/Sales of 2 [0.6]

+ Price to Book of 6.8 [2.2]

+ Dividend yield of 1% [1.4%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 2.8. Compared with the rest of the market the stock is overvalued and ranks in the bottom 10% of stocks by value of Q Ratio.

Note

Fast Retailing today is at a discount of 24.7% to the 12-month high of JPY44,149.91 on 21 Dec, 2016. It is at a premium of 7.8% to the 12-month low of JPY30,856.18 on 21 Sep, 2016.

Bullish Signals:

Net profit margin has averaged 5.2% in the last 3 years. This is better than the sector average of 2.3% and suggests a high margin of safety.

The Brand Value represents an impressive 10.7% of the estimated Enterprise Value of JPY3,836.8 billion (US$33.9 billion).

As per the Du Pont analysis, Return on Equity of 8.4% is better than sector average of 6.8%.

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

Undervaluation:

Return on Equity 8.4% [6.8%]

Return on Assets 4.4% [2.7%]

Return on Capital Employed 10% [7.6%]

TODAY'S ALERTS

Afternoon Alert: Fast Retailing down 2.1% in 2 days

21 July 2017 13:11 JST

Fast Retailing Co., Ltd. (TO:9983) extended its slide on Friday, shedding an additional JPY270.0 (or 0.8%) to trade at JPY33,230.0. Trading volume was 53% of average so far today. The shares have fallen JPY700.0 (or 2.1%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.4% in the same period.

Morning Alert: Fast Retailing down 2.2% in 2 days

21 July 2017 10:56 JST

Fast Retailing Co., Ltd. (TO:9983) extended its slide on Friday, shedding an additional JPY310.0 (or 0.9%) to trade at JPY33,190.0. Trading volume was 54% of average so far today. The shares have fallen JPY740.0 (or 2.2%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.5% in the same period.

RECENT ALERTS

CLOSING UPDATE: Fast Retailing recovers 0.03% - underperforming 99% of stocks

20 July 2017 16:26 JST

Fast Retailing, the 2nd largest retail trade company by market capitalisation in the Japan's, has decreased JPY430.0 (or 1.3%) today to trade at JPY33,500.0 and has underperformed 99% of the market in the past week. Compared with the Nikkei 225 Index which rose 123.7 points (or 0.6%) in the day, this represented a relative price change of -1.9%.

Afternoon Alert: Fast Retailing decreases 1.3% - underperforming 98% of stocks

20 July 2017 13:11 JST

Fast Retailing Co., Ltd. (TO:9983) has decreased JPY440.0 (or 1.3%) today to trade at JPY33,490.0 and has underperformed 98% of the market in the past week.

Fast Retailing Co., Ltd. (TO:9983; TYO:9983; T:9983; JP:9983)

ISIN: JP3802300008

Source: www.BuySellSignals.com