Japanese stock alert

JAP

CLOSING UPDATE: Japan Tobacco increases 1.2% - outperforming 91% of stocks 18 October 2017 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).

Japan Tobacco, the largest food company by market capitalisation in the Japan's, has increased JPY47.0 (or 1.2%) today to trade at JPY3,851.0 and has outperformed 91% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the Nikkei 225 Index which rose 26.9 points (or 0.1%) in the day, this represented a relative price increase of 1.1%.

Technical indicators complementing today's significant uptrend:

+ The positive 16.01 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price climbed 4.4% in the last week and lifted 3.5% in the last month.

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

Undervaluation:

+ Price/Earnings of 17.2 [22.0]

+ Dividend yield of 3.5% [2.1%]

+ Return on Equity 17.5% [10.4%]

+ Return on Assets 9% [5.5%]

+ Return on Capital Employed 17.7% [11.0%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 27.6 times.

+ Total Liabilities/EBITDA of 3.7 is comfortably below the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 1.6. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 18.6% 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 17.5% is better than sector average of 10.4%.

Note

Japan Tobacco today is at a discount of 7.7% to the 12-month high of JPY4,171.05 on 24 May, 2017. It is at a premium of 8.6% to the 12-month low of JPY3,545.83 on 07 Feb, 2017.

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

Overvaluation:

Price/Sales of 3.6 [1.1]

Price to Book of 17.9 [3.5]

TODAY'S ALERTS

Afternoon Alert: Japan Tobacco keeps rising: up 4.0% in 6 days

18 October 2017 13:09 JST

Japan Tobacco Inc. (TO:2914) extended its gains on Wednesday, rising an additional JPY30.0 (or 0.8%) to trade at JPY3,834.0. Trading volume was 85% of average so far today.

Morning Alert: Japan Tobacco increases 0.8%, leads Food sector higher

18 October 2017 10:55 JST

Japan Tobacco Inc. (TO:2914) has increased 0.8% to trade at JPY3,835.0 vs. the Food sector which strengthened 64.1 points (or 0.3%) to 23,043.0. Representing a weighting of about 25.5% of the sector, the stock accounted for 74.1% of today's gain. The shares have outperformed 89% of the market in the past week. Trading volume was 86% of average so far today.

RECENT ALERTS

Afternoon Alert: Japan Tobacco in 5th consecutive rise, nears three-month high

17 October 2017 13:19 JST

Japan Tobacco Inc. (TO:2914) extended its gains Tuesday, rising an additional JPY28.0 (or 0.7%) to trade at JPY3,810.0. The stock increased 0.57% on Friday and 1.83% on Monday bringing its 5-day rise to 3.4%. It is now approaching its 59-day high of JPY3,828.0.

Morning Alert: Japan Tobacco keeps rising: up 3.7% in 5 days

17 October 2017 10:56 JST

Japan Tobacco Inc. (TO:2914) extended its gains on Tuesday, rising an additional JPY40.0 (or 1.1%) to trade at JPY3,822.0. 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