Fact based stock research
J. Front Retailing (TSE:3086)
JP3386380004
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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J. Front Retailing stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 16 (worse than 84% compared with investment alternatives), J. Front Retailing (Department Stores, Japan) shares have lower financial characteristics compared with similar stocks. Shares of J. Front Retailing are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives) but show below-average growth (Growth Rank of 37), and are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 16, is a sell recommendation based on J. Front Retailing's financial characteristics. As the company J. Front Retailing's key financial metrics exhibit good value (Obermatt Value Rank of 51) but low growth (Obermatt Growth Rank of 37) and risky financing practices (Obermatt Safety Rank of 27), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 51% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Japan |
| Industry | Department Stores |
| Index | Nikkei 225 |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: J. Front Retailing
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 65 |
|
55 |
|
59 |
|
51 |
|
| GROWTH | ||||||||
| GROWTH | 45 |
|
81 |
|
87 |
|
37 |
|
| SAFETY | ||||||||
| SAFETY | 8 |
|
10 |
|
16 |
|
27 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
28 |
|
17 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
29 |
|
35 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 16 (worse than 84% compared with investment alternatives), J. Front Retailing (Department Stores, Japan) shares have lower financial characteristics compared with similar stocks. Shares of J. Front Retailing are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives) but show below-average growth (Growth Rank of 37), and are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 16, is a sell recommendation based on J. Front Retailing's financial characteristics. As the company J. Front Retailing's key financial metrics exhibit good value (Obermatt Value Rank of 51) but low growth (Obermatt Growth Rank of 37) and risky financing practices (Obermatt Safety Rank of 27), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 51% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 65 |
|
55 |
|
59 |
|
51 |
|
| GROWTH | ||||||||
| GROWTH | 45 |
|
81 |
|
87 |
|
37 |
|
| SAFETY | ||||||||
| SAFETY | 8 |
|
10 |
|
16 |
|
27 |
|
| COMBINED | ||||||||
| COMBINED | 39 |
|
46 |
|
63 |
|
16 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), J. Front Retailing shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for J. Front Retailing. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 67 which means that the stock price compared with what market professionals expect for future profits is lower than for 67% of comparable companies, indicating a good value concerning J. Front Retailing's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 67, and for Dividend Yield with a Dividend Yield Rank of 57. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 65% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 35). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on J. Front Retailing's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that J. Front Retailing has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing J. Front Retailing shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 50 |
|
56 |
|
48 |
|
35 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 1 |
|
41 |
|
75 |
|
67 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 88 |
|
77 |
|
74 |
|
67 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 73 |
|
63 |
|
59 |
|
57 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 65 |
|
55 |
|
59 |
|
51 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), J. Front Retailing shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for J. Front Retailing. Capital Growth has a rank of 67, which means that currently professionals expect the company to grow its invested capital more than 39% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 59 (above 59% of alternative investments). But Sales Growth has only a rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Profit Growth is also low at a rank of 39. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for J. Front Retailing, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 16 |
|
69 |
|
18 |
|
19 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 44 |
|
82 |
|
89 |
|
39 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
25 |
|
98 |
|
67 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 69 |
|
87 |
|
65 |
|
59 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 45 |
|
81 |
|
87 |
|
37 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 27 (better than 27% compared with alternatives), the company J. Front Retailing has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of J. Front Retailing is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for J. Front Retailing. Liquidity is at 47, meaning that the company generates less profit to service its debt than 53% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 27, meaning the company has an above-average debt-to-equity ratio. It has more debt than 73% of its competitors. Finally, Refinancing is at a rank of 12 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 88% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 27 (worse than 73% compared with alternatives), J. Front Retailing has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of J. Front Retailing because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 13 |
|
16 |
|
27 |
|
27 |
|
| REFINANCING | ||||||||
| REFINANCING | 15 |
|
10 |
|
12 |
|
12 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 13 |
|
16 |
|
27 |
|
47 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 8 |
|
10 |
|
16 |
|
27 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
19 |
|
58 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
87 |
|
29 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
44 |
|
13 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
23 |
|
31 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
28 |
|
17 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for J. Front Retailing from November 14, 2024.
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