DB:6JK

Stock Analysis Report

Executive Summary

JTEKT Corporation manufactures and sells steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc.

Snowflake

Fundamentals

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has JTEKT's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

6JK

2.8%

DE Machinery

4.4%

DE Market


1 Year Return

-12.6%

6JK

-19.0%

DE Machinery

1.6%

DE Market

Return vs Industry: 6JK exceeded the German Machinery industry which returned -19% over the past year.

Return vs Market: 6JK underperformed the German Market which returned 1.6% over the past year.


Shareholder returns

6JKIndustryMarket
7 Day2.9%2.8%4.4%
30 Day-0.9%-5.8%0.8%
90 Day1.0%-6.2%2.3%
1 Year-9.5%-12.6%-16.4%-19.0%4.8%1.6%
3 Year-15.2%-22.3%-19.5%-25.3%18.9%8.6%
5 Year5.1%-8.7%20.2%6.1%43.7%24.1%

Price Volatility Vs. Market

How volatile is JTEKT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is JTEKT undervalued compared to its fair value and its price relative to the market?

30.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 6JK (€10.5) is trading below our estimate of fair value (€15)

Significantly Undervalued: 6JK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6JK is poor value based on its PE Ratio (24.1x) compared to the Machinery industry average (14.3x).

PE vs Market: 6JK is poor value based on its PE Ratio (24.1x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: 6JK is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: 6JK is good value based on its PB Ratio (0.8x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is JTEKT forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6JK's forecast earnings growth (9.3% per year) is above the savings rate (0.2%).

Earnings vs Market: 6JK's earnings (9.3% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: 6JK's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6JK's revenue (2.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 6JK's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 6JK's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has JTEKT performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6JK's earnings have declined by -2.5% per year over the past 5 years.

Accelerating Growth: 6JK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6JK had negative earnings growth (-60.4%) over the past year, making it difficult to compare to the Machinery industry average (-9.7%).


Return on Equity

High ROE: 6JK's Return on Equity (4.1%) is considered low.


Return on Assets

ROA vs Industry: 6JK's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 6JK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is JTEKT's financial position?


Financial Position Analysis

Short Term Liabilities: 6JK's short term assets (¥620.6B) exceeds its short term liabilities (¥386.3B)

Long Term Liabilities: 6JK's short term assets (620.6B) exceeds its long term liabilities (290.2B)


Debt to Equity History and Analysis

Debt Level: 6JK's debt to equity ratio (46.7%) is considered high

Reducing Debt: 6JK's debt to equity ratio has reduced from 58.5% to 46.7% over the past 5 years.

Debt Coverage: 6JK's debt is well covered by operating cash flow (39.3%).

Interest Coverage: 6JK's interest payments on its debt are well covered by EBIT (262.7x coverage).


Balance Sheet

Inventory Level: 6JK has a high level of physical assets or inventory.

Debt Coverage by Assets: 6JK's debt is covered by short term assets (assets are 2.368980x debt).


Next Steps

Dividend

What is JTEKT's current dividend yield, its reliability and sustainability?

3.43%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.8%industryaverage2.4%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 6JK's dividend (3.43%) is higher than the bottom 25% of dividend payers in the German market (1.45%).

High Dividend: 6JK's dividend (3.43%) is low compared to the top 25% of dividend payers in the German market (3.85%).

Stable Dividend: 6JK's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6JK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.7%), 6JK's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of JTEKT's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Tetsuo Agata (67yo)

0yrs

Tenure

0

Mr. Tetsuo Agata serves as the President of JTEKT Corporation. Mr. Agata served as an Executive Vice President of Toyota Industries Corporation. He served as Head of Corporate Development at Toyota Industr ...


Management Age and Tenure

2.5yrs

Average Tenure

62.5yo

Average Age

Experienced Management: 6JK's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

63yo

Average Age

Experienced Board: 6JK's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Tetsuo Agata (67yo)

    President & Representative Director

    • Tenure: 0yrs
  • Hiroyuki Kaijima (63yo)

    Executive VP

    • Tenure: 0yrs
  • Kazunori Shimada

    Executive Managing Officer

    • Tenure: 0yrs
  • Katsumi Yamamoto (60yo)

    Senior Executive Director & Director

    • Tenure: 0yrs
  • Kazuhisa Makino (62yo)

    Executive Director

    • Tenure: 0.8yrs
  • Hiroshi Ii

    Executive Managing Officer & CEO of Europe

    • Tenure: 3.5yrs
  • Kunihiko Yokota

    Executive Managing Officer

    • Tenure: 2.5yrs
  • Haruhiko Segawa

    Executive Managing Officer

    • Tenure: 2.5yrs
  • Makoto Sano

    Executive Managing Officer

    • Tenure: 0yrs
  • Kanji Nagata

    Managing Officer

    • Tenure: 0.8yrs

Board Members

  • Takeshi Uchiyamada (73yo)

    Director

    • Tenure: 1.2yrs
  • Tetsuo Agata (67yo)

    President & Representative Director

    • Tenure: 0yrs
  • Hiroyuki Kaijima (63yo)

    Executive VP

    • Tenure: 0yrs
  • Atsushi Kume

    Member of the Audit & Supervisory Board

    • Tenure: 1.2yrs
  • Kazuhisa Makino (62yo)

    Executive Director

    • Tenure: 0.8yrs
  • Hirofumi Matsuoka (57yo)

    Executive Director

    • Tenure: 1.8yrs
  • Hiroshi Takenaka (61yo)

    Member of the Audit & Supervisory Board

    • Tenure: 0yrs
  • Takumi Matsumoto (58yo)

    MD, GM of Drive Business Division & Executive Director

    • Tenure: 3.3yrs
  • Takao Miyatani (79yo)

    Independent Outside Director

    • Tenure: 0yrs
  • Iwao Okamoto (73yo)

    Independent Outside Director

    • Tenure: 0yrs

Company Information

JTEKT Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JTEKT Corporation
  • Ticker: 6JK
  • Exchange: DB
  • Founded: 1921
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥440.032b
  • Listing Market Cap: JP¥3.665b
  • Shares outstanding: 342.97m
  • Website: https://www.jtekt.co.jp

Number of Employees


Location

  • JTEKT Corporation
  • No. 5-8, Minamisemba 3-chome
  • Chuo-ku
  • Osaka
  • 542-8502
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6473TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
JTEK.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6JKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
JTEK.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

JTEKT Corporation manufactures and sells steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc. The company offers steering systems, suc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:04
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.