Japanese stock alert

JAP

CLOSING UPDATE: Honda Motor increases further 0.4% - outperforming 89% of stocks 20 September 2018 16:35 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).

Honda Motor, the 2nd largest transportation equipment company by market capitalisation in the Japan's, has increased JPY35.0 (or 1.0%) today to trade at JPY3,418.0 and has outperformed 89% 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 2.4 points (or 0.01%) in the day, this represented a relative price increase of 1.0%.

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

Undervaluation:

+ Price/Earnings of 5.6 [9.6]

+ Price/Earnings/Growth of 0.2 [0.3]

+ Price/Sales of 0.4 [0.6]

+ Price to Book of 0.9 [1.1]

+ Return on Equity 15.1% [11.6%]

+ Return on Assets 5.8% [4.7%]

Bullish Signals:

+ Interest cover is less leveraged at 87 times.

+ Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

+ The Brand Value represents an impressive 27.9% of the estimated Enterprise Value of JPY6,490.6 billion (US$57.9 billion).

+ As per the Du Pont analysis, Return on Equity of 15.1% is better than sector average of 11.6%.

Note

Honda Motor today is at a discount of 16.4% to the 12-month high of JPY4,089.90 on 10 Jan, 2018. It is at a premium of 10.0% to the 12-month low of JPY3,107.0 on 12 Sep, 2018.

Bearish Signals:

The negative 5.15 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

Net profit margin has averaged 5% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

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

Overvaluation:

Dividend yield of 1.5% [2.6%]

TODAY'S ALERT

Morning Alert: Honda Motor increases 0.6% - outperforming 88% of stocks

20 September 2018 11:13 JST

Honda Motor Co., Ltd. (TO:7267) has increased JPY21.0 (or 0.6%) today to trade at JPY3,404.0 and has outperformed 88% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

RECENT ALERTS

CLOSING UPDATE: Honda Motor increases further 0.7% on firm volume

19 September 2018 16:34 JST

Honda Motor, the 2nd largest transportation equipment company by market capitalisation in the Japan's, traded on heavy volume of 1.2 times average today while the price lifted JPY99.0 (or 3.0%) to trade at JPY3,383.0. Compared with the Nikkei 225 Index which rose 252.0 points (or 1.1%) in the day, this represented a relative price increase of 1.9%.

Morning Alert: Honda Motor lifts 2.3%

19 September 2018 11:13 JST

Honda Motor Co., Ltd. (TO:7267) traded on volume of 0.7 times average so far today while the price lifted JPY77.0 (or 2.3%) to trade at JPY3,361.0.

Honda Motor Co., Ltd. (TO:7267; TYO:7267; T:7267; JP:7267)

ISIN: JP3854600008

Source: www.BuySellSignals.com