Japanese stock alert

JAP

CLOSING UPDATE: Japan Tobacco increases further 0.1% - outperforming 88% of stocks 20 June 2018 16:37 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).

Japan Tobacco, the largest food company by market capitalisation in Japan's, has increased JPY21.0 (or 0.7%) today to trade at JPY3,143.0 and has outperformed 88% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the Nikkei 225 Index which rose 276.9 points (or 1.2%) in the day, this represented a relative price change of -0.6%.

Technical indicators complementing today's significant uptrend:

+ The positive 49.92 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price increased 1.3% in the last week and climbed 5.3% in the last month.

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

Undervaluation:

+ Price/Earnings of 14.4 [23.1]

+ Dividend yield of 4.5% [2.2%]

+ Return on Equity 14.5% [9.4%]

+ Return on Assets 7.6% [5.0%]

+ Return on Capital Employed 15.1% [10.6%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 20.7 times.

+ Total Liabilities/EBITDA of 4.2 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 1.2. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 18.8% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 14.5% is better than sector average of 9.4%.

Note

Japan Tobacco today is at a discount of 22.9% to the 12-month high of JPY4,074.0 on 28 Jun, 2017. It is at a premium of 12.9% to the 12-month low of JPY2,784.50 on 23 Mar, 2018.

Bearish Signals:

In the last three months the stock has hit a new 52-week low thrice.

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

Overvaluation:

Price/Earnings/Growth of 5.08 [1.1]

Price/Sales of 2.9 [1.2]

Price to Book of 16.1 [3.2]

TODAY'S ALERT

Afternoon Alert: Japan Tobacco increases 0.6% - outperforming 91% of stocks

20 June 2018 13:00 JST

Japan Tobacco Inc. (TO:2914) has increased JPY18.0 (or 0.6%) today to trade at JPY3,140.0 and has outperformed 91% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

RECENT ALERTS

CLOSING UPDATE: Japan Tobacco decreases further 0.7%, led Food sector lower

19 June 2018 16:36 JST

Japan Tobacco, the largest food company by market capitalisation in Japan's, has decreased 1.9% to trade at JPY3,122.0 vs. the Food sector which weakened 366.4 points (or 1.6%) to 22,696.5. Representing a weighting of about 21.0% of the sector, the stock accounted for 25.0% of today's loss. Trading volume was 1.6 times average at the end of the day. Compared with the Nikkei 225 Index which fell 401.9 points (or 1.8%) in the day, this represented a relative price change of -0.1%.

Afternoon Alert: Japan Tobacco decreases 1.2%, leads Food sector lower

19 June 2018 13:00 JST

Japan Tobacco Inc. (TO:2914) has decreased 1.2% to trade at JPY3,145.0 vs. the Food sector which weakened 233.4 points (or 1%) to 22,829.6. Representing a weighting of about 21.1% of the sector, the stock accounted for 24.3% of today's loss. Trading volume was 1.1 times average so far today.

Japan Tobacco Inc. (TO:2914; TYO:2914; T:2914; JP:2914)

ISIN: JP3726800000

Source: www.BuySellSignals.com