Fact based stock research
Jtekt (TSE:6473)

JP3292200007

How to read the free ranks

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.

Jtekt stock research in summary

jtekt.co.jp

ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% compared with investment alternatives), Jtekt (Auto Parts & Equipment, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Jtekt are a good value (attractively priced) with a consolidated Value Rank of 100 (better than 100% of alternatives), are safely financed (Safety Rank of 55, which means low debt burdens), but show below-average growth (Growth Rank of 23). ...read more

RECOMMENDATION: A Combined Rank of 65, is a buy recommendation based on Jtekt's financial characteristics. As the company Jtekt's key financial metrics exhibit good value (Obermatt Value Rank of 100) but low growth (Obermatt Growth Rank of 23) while being safely financed (Obermatt Safety Rank of 55), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 100% 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	100
Growth Rank	23
Safety Rank	55
Combined Rank	65

Country	Japan
Industry	Auto Parts & Equipment
Index	Electromobility, Nikkei 225
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-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: Jtekt

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	93	100	100
GROWTH
GROWTH	49	97	49	23
SAFETY
SAFETY	40	39	39	55
SENTIMENT
SENTIMENT	n/a	24	30	^new
360° VIEW
360° VIEW	n/a	85	55	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Jtekt is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	93	100	100
GROWTH
GROWTH	49	97	49	23
SAFETY
SAFETY	40	39	39	55
COMBINED
COMBINED	78	94	63	65

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Jtekt the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 100 (better than 100% compared with alternatives) for 2024, Jtekt shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Jtekt. Price-to-Sales is 100 which means that the stock price compared with what market professionals expect for future sales is lower than for 100% of comparable companies, indicating a good value for Jtekt's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 86% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 100. Compared with other companies in the same industry, dividend yields of Jtekt are expected to be higher than for 78% of all competitors (a Dividend Yield rank of 78). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 100, is a buy recommendation based on Jtekt's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Jtekt based on its detailed value metrics. 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)	98	100	100	100
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	90	89	91	86
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	98	95	100	100
DIVIDEND YIELD
DIVIDEND YIELD	72	50	73	78
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	95	93	100	100

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Jtekt; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 23 (better than 23% compared with alternatives), Jtekt 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 Jtekt. Only Capital Growth has a good rank of 86, which means that currently professionals expect the company to grow its invested capital more than 10% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 39 which means that currently professionals expect the company to grow less than 61% of its competitors. Profit Growth with a rank of 10 and Stock Returns with a rank of 7 are also low (below 93% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Jtekt is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the 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 limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	42	55	23	39
PROFIT GROWTH
PROFIT GROWTH	50	98	67	10
CAPITAL GROWTH
CAPITAL GROWTH	n/a	74	31	86
STOCK RETURNS
STOCK RETURNS	56	77	69	7
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	49	97	49	23

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Jtekt.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company Jtekt has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Jtekt 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 just one indicator above average for Jtekt and the other two below average. Refinancing is at 100, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 100% of its competitors. But Leverage is high with a rank of 44, meaning the company has an above-average debt-to-equity ratio. It has more debt than 56% of its competitors. Liquidity is also on the riskier side with a rank of 33, meaning the company generates less profit to service its debt than 67% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), Jtekt has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Jtekt are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Jtekt 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	14	34	34	44
REFINANCING
REFINANCING	96	95	95	100
LIQUIDITY
LIQUIDITY	30	6	27	33
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	40	39	39	55

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Jtekt 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	44	58	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	21	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	42	29	^new
MARKET PULSE
MARKET PULSE	n/a	24	53	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	24	30	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Jtekt.
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