Japanese stock alert

JAP

CLOSING UPDATE: Denso increases further 0.5% - outperforming 85% of stocks 21 September 2018 16:53 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).

Denso, the 4th largest transportation equipment company by market capitalisation in the Japan's, has increased JPY58.0 (or 1.0%) today to trade at JPY5,814.0 and has outperformed 85% 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 195.0 points (or 0.8%) in the day, this represented a relative price increase of 0.2%.

Technical indicators complementing today's significant uptrend:

+ The positive 81.99 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

Undervaluation:

+ Return on Assets 6% [4.7%]

+ Return on Capital Employed 10.3% [8.5%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 48.4 times.

+ Total Liabilities/EBITDA of 4.3 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.8. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 6.2% in the last 3 years. This is better than the sector average of 5.8% and suggests a high margin of safety.

Note

Denso today is at a discount of 18.6% to the 12-month high of JPY7,145.08 on 24 Jan, 2018. It is at a premium of 13.4% to the 12-month low of JPY5,128.0 on 04 Jul, 2018.

Bearish Signals:

As per the Du Pont analysis, Return on Equity of 10.2% is lower than sector average of 11.6%.

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

Overvaluation:

Price/Earnings of 14.0 [9.7]

Price/Earnings/Growth of 1.75 [0.3]

Price/Sales of 0.9 [0.6]

Price to Book of 1.3 [1.2]

Dividend yield of 2.1% [2.6%]

Return on Equity 10.2% [11.6%]

TODAY'S ALERTS

Afternoon Alert: Denso increases 0.5% - outperforming 86% of stocks

21 September 2018 13:03 JST

Denso Corporation (TO:6902) has increased JPY31.0 (or 0.5%) today to trade at JPY5,787.0 and has outperformed 86% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

Morning Alert: Denso increases 1.1% - outperforming 89% of stocks

21 September 2018 11:11 JST

Denso Corporation (TO:6902) has increased JPY61.0 (or 1.1%) today to trade at JPY5,817.0 and has outperformed 89% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

RECENT ALERTS

CLOSING UPDATE: Denso increases further 0.1% - outperforming 91% of stocks

20 September 2018 16:35 JST

Denso, the 4th largest transportation equipment company by market capitalisation in the Japan's, has increased JPY49.0 (or 0.9%) today to trade at JPY5,756.0 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 2.4 points (or 0.01%) in the day, this represented a relative price increase of 0.8%.

Morning Alert: Denso increases 0.8% - outperforming 91% of stocks

20 September 2018 11:13 JST

Denso Corporation (TO:6902) has increased JPY44.0 (or 0.8%) today to trade at JPY5,751.0 and has outperformed 91% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

Denso Corporation (TO:6902; TYO:6902; T:6902; JP:6902)

ISIN: JP3551500006

Source: www.BuySellSignals.com