Fact based stock research
Japan Airlines (TSE:9201)

JP3705200008

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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).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Japan Airlines stock research in summary

jal.co.jp

ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), Japan Airlines (Airlines, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Japan Airlines are a good value (attractively priced) with a consolidated Value Rank of 73 (better than 73% of alternatives), are safely financed (Safety Rank of 79, which means low debt burdens), but show below-average growth (Growth Rank of 17). ...read more

RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on Japan Airlines's financial characteristics. As the company Japan Airlines's key financial metrics exhibit good value (Obermatt Value Rank of 73) but low growth (Obermatt Growth Rank of 17) while being safely financed (Obermatt Safety Rank of 79), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 73% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	73
Growth Rank	17
Safety Rank	79
Combined Rank	69

Country	Japan
Industry	Airlines
Index	TOPIX 100
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Japan Airlines

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	27	67	81	73
GROWTH
GROWTH	13	89	61	17
SAFETY
SAFETY	15	45	57	79
SENTIMENT
SENTIMENT	n/a	59	48	^new
360° VIEW
360° VIEW	n/a	91	79	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Japan Airlines is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	27	67	81	73
GROWTH
GROWTH	13	89	61	17
SAFETY
SAFETY	15	45	57	79
COMBINED
COMBINED	10	88	87	69

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Japan Airlines the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 73 (better than 73% compared with alternatives), Japan Airlines 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 Japan Airlines. Price-to-Sales (P/S) is 78, which means that the stock price compared with what market professionals expect for future sales is lower than for 78% of comparable companies, indicating a good value concerning Japan Airlines's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 78% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 53 (dividends are expected to be higher than 53% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 53% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Japan Airlines to 47. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 73, is a buy recommendation based on Japan Airlines's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. 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)	59	70	81	78
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	50	83	78
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	67	75	48	47
DIVIDEND YIELD
DIVIDEND YIELD	1	34	57	53
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	27	67	81	73

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Japan Airlines; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 17 (better than 17% compared with alternatives), Japan Airlines shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Japan Airlines. While Sales Growth ranks at 63, professionals currently expect the company to grow more than 63% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 23, which means that, currently, professionals expect the company to grow its profits less than 77% of its competitors, and Capital Growth has a low rank of 20. Historic stock returns were also below average with a current Stock Returns rank of 31 which means that the stock returns have recently been below 69% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 17, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. 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 isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	5	88	67	63
PROFIT GROWTH
PROFIT GROWTH	40	49	91	23
CAPITAL GROWTH
CAPITAL GROWTH	n/a	86	15	20
STOCK RETURNS
STOCK RETURNS	69	59	43	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	13	89	61	17

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Japan Airlines.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 79 (better than 79% compared with alternatives) for 2024, the company Japan Airlines has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Japan Airlines is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Japan Airlines. Refinancing is at 85, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 85% of its competitors. Liquidity is also good at 72, meaning the company generates more profit to service its debt than 72% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 44, which means the company has an above-average debt-to-equity ratio. It has more debt than 56% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 79 (better than 79% compared with alternatives), Japan Airlines has a financing structure that is significantly safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Japan Airlines could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Japan Airlines and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	47	74	42	44
REFINANCING
REFINANCING	18	65	83	85
LIQUIDITY
LIQUIDITY	5	1	26	72
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	15	45	57	79

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Japan Airlines and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	76	81	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	91	42	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	16	67	^new
MARKET PULSE
MARKET PULSE	n/a	25	9	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	59	48	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Japan Airlines.
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