JFE Holdings (TSE:5411) - Share price, News & Analysis

5411 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	4/6

5411 Stock Overview

JFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally.

Rewards

Trading at 12.8% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 8.9% per year for the next 3 years

Debt is not well covered by operating cash flow

Dividend of 11.37% is not well covered by earnings

JFE Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for JFE Holdings
Historical stock prices
Current Share Price	JP¥1,407.00
52 Week High	JP¥1,950.00
52 Week Low	JP¥1,227.00
Beta	1.96
1 Month Change	-7.92%
3 Month Change	-23.78%
1 Year Change	6.43%
3 Year Change	-11.09%
5 Year Change	-27.87%
Change since IPO	1.08%

Shareholder Returns

	5411	JP Metals and Mining	JP Market
7D	-3.6%	-3.5%	1.9%
1Y	6.4%	-1.6%	-6.2%

Return vs Industry: 5411 exceeded the JP Metals and Mining industry which returned -1.7% over the past year.

Return vs Market: 5411 exceeded the JP Market which returned -7.1% over the past year.

Price Volatility

Is 5411's price volatile compared to industry and market?
5411 volatility
5411 Average Weekly Movement	4.7%
Metals and Mining Industry Average Movement	4.4%
Market Average Movement	4.2%
10% most volatile stocks in JP Market	8.5%
10% least volatile stocks in JP Market	2.3%

Stable Share Price: 5411 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 5411's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	64,371	Koji Kakigi	https://www.jfe-holdings.co.jp

JFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally. Its Steel segment produces and sells various steel products, processed steel products, and raw materials, as well as operates in the transportation, facility maintenance, and construction businesses. The company’s Engineering segment engages in the engineering of energy, urban environment, steel structures and industrial machinery, recycling, and electricity retailing projects.

JFE Holdings Fundamentals Summary

How do JFE Holdings's earnings and revenue compare to its market cap?
5411 fundamental statistics
Market Cap	JP¥810.21b
Earnings (TTM)	JP¥288.06b
Revenue (TTM)	JP¥4.37t

2.8x

P/E Ratio

0.2x

P/S Ratio

Is 5411 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5411 income statement (TTM)
Revenue	JP¥4.37t
Cost of Revenue	JP¥3.69t
Gross Profit	JP¥670.46b
Other Expenses	JP¥382.40b
Earnings	JP¥288.06b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)	500.24
Gross Margin	15.36%
Net Profit Margin	6.60%
Debt/Equity Ratio	89.3%

How did 5411 perform over the long term?

See historical performance and comparison

Dividends

11.4%

Current Dividend Yield

28%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 5411 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5411?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 5411. This is calculated by dividing 5411's market cap by their current preferred multiple.
What is 5411's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥810.21b

5411 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	4.6x
PEG Ratio	-0.3x

Price to Earnings Ratio vs Peers

How does 5411's PE Ratio compare to its peers?

5411 PE Ratio vs Peers

The above table shows the PE ratio for 5411 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.9x

Forward PE

Price-To-Earnings vs Peers: 5411 is good value based on its Price-To-Earnings Ratio (2.8x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

How does 5411's PE Ratio compare vs other companies in the Japanese Metals and Mining Industry?

Price-To-Earnings vs Industry: 5411 is good value based on its Price-To-Earnings Ratio (2.8x) compared to the JP Metals and Mining industry average (5.9x)

Price to Earnings Ratio vs Fair Ratio

What is 5411's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5411 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.8x
Fair PE Ratio	8x

Price-To-Earnings vs Fair Ratio: 5411 is good value based on its Price-To-Earnings Ratio (2.8x) compared to the estimated Fair Price-To-Earnings Ratio (8x).

Share Price vs Fair Value

What is the Fair Price of 5411 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5411 (¥1407) is trading below our estimate of fair value (¥1613.67)

Significantly Below Fair Value: 5411 is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: 5411's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is JFE Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-8.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5411's earnings are forecast to decline over the next 3 years (-8.9% per year).

Earnings vs Market: 5411's earnings are forecast to decline over the next 3 years (-8.9% per year).

High Growth Earnings: 5411's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 5411's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: 5411's revenue is forecast to decline over the next 3 years (-0.3% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 5411's Return on Equity is forecast to be low in 3 years time (7.2%).

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Past Performance

How has JFE Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-12.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5411 has high quality earnings.

Growing Profit Margin: 5411 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 5411's earnings have declined by 12.5% per year over the past 5 years.

Accelerating Growth: 5411 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 5411 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (133.7%).

Return on Equity

High ROE: 5411's Return on Equity (14%) is considered low.

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Financial Health

How is JFE Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 5411's short term assets (¥2,392.6B) exceed its short term liabilities (¥1,493.8B).

Long Term Liabilities: 5411's short term assets (¥2,392.6B) exceed its long term liabilities (¥1,723.3B).

Debt to Equity History and Analysis

Debt Level: 5411's net debt to equity ratio (84.4%) is considered high.

Reducing Debt: 5411's debt to equity ratio has increased from 71.6% to 89.3% over the past 5 years.

Debt Coverage: 5411's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: 5411's interest payments on its debt are well covered by EBIT (27.2x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

11.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5411's dividend (11.37%) is higher than the bottom 25% of dividend payers in the JP market (1.71%).

High Dividend: 5411's dividend (11.37%) is in the top 25% of dividend payers in the JP market (3.76%)

Stability and Growth of Payments

Stable Dividend: 5411's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5411's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28%), 5411's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 5411 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average board tenure

CEO

Koji Kakigi (69 yo)

3.17yrs

Tenure

JP¥106,847,000

Compensation

Mr. Koji Kakigi serves as a Representative Executive Director of JFE Holdings, Inc. since June 2015 and has been its Chief Executive Officer since April 1, 2019. Mr. Kakigi served as the Chief Executive Of...

CEO Compensation Analysis

Compensation vs Market: Koji's total compensation ($USD793.84K) is about average for companies of similar size in the JP market ($USD1.10M).

Compensation vs Earnings: Koji's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: 5411's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31