Japanese stock alert

JAP

CLOSING UPDATE: Central Japan Railway increases further 0.02%, led Land transportation sector higher 19 January 2018 16:29 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).

Central Japan Railway, the 2nd largest land transportation company by market capitalisation in the Japan's, has increased 1.0% to trade at JPY20,845.0 vs. the Land transportation sector which strengthened 117.1 points (or 0.6%) to 21,510.2. Representing a weighting of about 15.5% of the sector, the stock accounted for 28.0% of today's gain. Trading volume was 56% of average at the end of the day. Compared with the Nikkei 225 Index which rose 73.5 points (or 0.3%) in the day, this represented a relative price increase of 0.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 80.53 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 3.1% discount to 12-month high of JPY21,520.0 against the 19.4% premium to 12-month low of JPY17,463.66 suggests the stock continues to push for new highs.

+ In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.

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

Undervaluation:

+ Price/Earnings of 10.0 [17.6]

+ Price to Book of 1.6 [1.8]

+ Return on Equity 14.3% [9.6%]

+ Return on Assets 5.5% [3.4%]

+ Return on Capital Employed 9% [6.9%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 25.6 times.

+ Tobin's Q Ratio is 0.6. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 18.9% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ The Brand Value represents 7.7% of the estimated Enterprise Value of JPY4,589.9 billion (US$41.4 billion).

+ As per the Du Pont analysis, Return on Equity of 14.3% is better than sector average of 9.6%.

Note

Bearish Signals:

The price decreased 0.2% in the last week.

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

Overvaluation:

Price/Sales of 2.4 [1.2]

Dividend yield of 0.3% [1.9%]

TODAY'S ALERT

Afternoon Alert: Central Japan Railway increases 1.0%, leads Land transportation sector higher

19 January 2018 13:03 JST

Central Japan Railway Company (TO:9022) has increased 1.0% to trade at JPY20,840.0 vs. the Land transportation sector which strengthened 105.7 points (or 0.5%) to 21,498.7. Representing a weighting of about 15.5% of the sector, the stock accounted for 30.6% of today's gain. Trading volume was 87% of average so far today.

RECENT ALERT

Afternoon Alert: Central Japan Railway decreases 0.4%, leads Land transportation sector lower

16 January 2018 13:02 JST

Central Japan Railway Company (TO:9022) has decreased 0.4% to trade at JPY20,920.0 vs. the Land transportation sector which weakened 5.6 points (or 0.03%) to 21,582.8. Representing a weighting of about 15.5% of the sector, the stock accounted for the loss. Trading volume was 52% of average so far today.

Central Japan Railway Company (TO:9022; TYO:9022; T:9022; JP:9022)

ISIN: JP3566800003

Source: www.BuySellSignals.com