Japanese stock alert

JAP

CLOSING UPDATE: Fast Retailing lifts 2.8% on firm volume 16 January 2018 16:26 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 largest retail trade company by market capitalisation in the Japan's, traded on heavy volume of 1.3 times average today while the price lifted JPY1,400.0 (or 2.8%) to trade at JPY50,940.0. Compared with the Nikkei 225 Index which rose 236.9 points (or 1%) in the day, this represented a relative price increase of 1.8%.

Technical indicators complementing today's significant uptrend:

+ The positive 1,783.75 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 87% of the Japan market over the past 6 months.

+ In the last one month the stock has hit a new 52-week high seven times and in the last three months ten times, pointing to a significant uptrend.

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

Undervaluation:

+ Return on Equity 8.4% [6.7%]

+ Return on Assets 4.4% [2.7%]

+ Return on Capital Employed 10% [7.7%]

Other Bullish Signals include:

+ 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 7.0% of the estimated Enterprise Value of JPY5,713.2 billion (US$51.5 billion).

+ As per the Du Pont analysis, Return on Equity of 8.4% is better than sector average of 6.7%.

Note

Bearish Signals:

Tobin's Q Ratio is 4.4. Compared with the rest of the market the stock is overvalued and ranks in the bottom 6% of stocks by value of Q Ratio.

Overbought/Bearish:

The 0.3% discount to 12-month high of JPY51,110.0 against the 69.8% premium to 12-month low of JPY30,000.0 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings of 83.8 [32.8]

Price/Sales of 3 [0.7]

Price to Book of 10.3 [2.6]

Dividend yield of 0.7% [1.2%]

TODAY'S ALERTS

Afternoon Alert: Fast Retailing hits 52-week high seventh time in one month

16 January 2018 13:02 JST

Fast Retailing Co., Ltd. (TO:9983) hit a 52-week high of JPY50,470.0 today for the seventh time in the past one month and last traded at JPY50,390.0. Trading volume was 69% of average so far today.

Morning Alert: Fast Retailing increases 0.7%, leads Retail trade sector higher

16 January 2018 11:01 JST

Fast Retailing Co., Ltd. (TO:9983) has increased 0.7% to trade at JPY49,890.0 vs. the Retail trade sector which strengthened 109.2 points (or 0.5%) to 22,582.3. Representing a weighting of about 13.2% of the sector, the stock accounted for 19.0% of today's gain. The shares have outperformed 87% of the market in the past week. Trading volume was 44% of average so far today.

RECENT ALERTS

CLOSING UPDATE: Fast Retailing hits 52-week high sixth time in one month

15 January 2018 16:28 JST

Fast Retailing, the largest retail trade company by market capitalisation in the Japan's, hit a 52-week high of JPY50,260.0 today for the sixth time in the past one month and last traded at JPY49,540.0. Trading volume was 1.3 times average at the end of the day. Compared with the Nikkei 225 Index which rose 61.1 points (or 0.3%) in the day, this represented a relative price change of -0.4%.

Afternoon Alert: Fast Retailing in 2nd consecutive rise, nears a 41-month high

15 January 2018 13:02 JST

Fast Retailing Co., Ltd. (TO:9983) extended its gains Monday, rising an additional JPY130.0 (or 0.3%) to trade at JPY49,740.0. The stock jumped 6.0% on Friday bringing its 2-day rise to 6.3%. It is now approaching its twenty-nine-month high of JPY50,260.0.

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

ISIN: JP3802300008

Source: www.BuySellSignals.com