OTCPK:JFEE.F

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JFEE.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-20.1%

JFEE.F

1.1%

US Metals and Mining

0.06%

US Market


1 Year Return

n/a

JFEE.F

-1.9%

US Metals and Mining

19.3%

US Market

Return vs Industry: Insufficient data to determine how JFEE.F performed against the US Metals and Mining industry.

Return vs Market: Insufficient data to determine how JFEE.F performed against the US Market.


Shareholder returns

JFEE.FIndustryMarket
7 Day-20.1%1.1%0.06%
30 Day-20.1%-3.4%1.7%
90 Dayn/a0.4%9.0%
1 Yearn/a0.6%-1.9%21.8%19.3%
3 Year-44.4%-44.4%-0.8%-6.1%49.5%39.9%
5 Year-59.3%-59.3%20.9%11.6%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

16.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JFEE.F ($10) is trading above our estimate of fair value ($5.16)

Significantly Below Fair Value: JFEE.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JFEE.F is poor value based on its PE Ratio (16.2x) compared to the Metals and Mining industry average (11.1x).

PE vs Market: JFEE.F is good value based on its PE Ratio (16.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: JFEE.F is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: JFEE.F is good value based on its PB Ratio (0.3x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is JFE Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

30.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JFEE.F's forecast earnings growth (30% per year) is above the savings rate (1.7%).

Earnings vs Market: JFEE.F's earnings (30% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JFEE.F's revenue (0.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: JFEE.F's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JFEE.F's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has JFE Holdings performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JFEE.F has high quality earnings.

Growing Profit Margin: JFEE.F's current net profit margins (1.1%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: JFEE.F's earnings have grown by 6.6% per year over the past 5 years.

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

Earnings vs Industry: JFEE.F had negative earnings growth (-74.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-17.7%).


Return on Equity

High ROE: JFEE.F's Return on Equity (2.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JFE Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: JFEE.F's short term assets (¥2,020.8B) exceed its short term liabilities (¥1,316.0B).

Long Term Liabilities: JFEE.F's short term assets (¥2,020.8B) exceed its long term liabilities (¥1,621.1B).


Debt to Equity History and Analysis

Debt Level: JFEE.F's debt to equity ratio (89.8%) is considered high.

Reducing Debt: JFEE.F's debt to equity ratio has increased from 83.9% to 89.8% over the past 5 years.

Debt Coverage: JFEE.F's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: JFEE.F's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: JFEE.F has a high level of physical assets or inventory.

Debt Coverage by Assets: JFEE.F's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.81%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: JFEE.F's dividend (1.81%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: JFEE.F's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

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

Growing Dividend: JFEE.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (102.4%), JFEE.F's dividend payments are not well 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

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

2.7yrs

Average board tenure


CEO

Koji Kakigi 0

0.8yrs

Tenure

JP¥101,585,000

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 ($USD907.48K) is below average for companies of similar size in the US market ($USD6.36M).

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


Board Members

NamePositionTenureCompensationOwnership
Koji Kakigi
CEO, President & Representative Director0.8yrsJP¥101.59m0.0062% ¥354.5k
Masashi Terahata
CFO, Executive VP & Representative Director0.7yrsno data0.0015% ¥88.3k
Masao Yoshida
External Director4.7yrsno data0.0015% ¥86.1k
Masami Yamamoto
External Director2.7yrsno data0.00071% ¥40.5k
Nobumasa Kemori
External Director1.7yrsno data0.00030% ¥17.1k
Isao Saiki
Outside Audit & Supervisory Board Member0yrsno data0.00043% ¥24.5k
Naosuke Oda
Director2.7yrsno data0.0027% ¥152.2k
Shigeo Ohyagi
Outside Audit & Supervisory Board Member9.7yrsno data0.0020% ¥114.0k
Hajime Oshita
Director2.7yrsJP¥175.55m0.0017% ¥96.9k
Yoshihisa Kitano
Representative Director0.7yrsno data0.0016% ¥90.1k

2.7yrs

Average Tenure

68yo

Average Age

Experienced Board: JFEE.F's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

JFE Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JFE Holdings, Inc.
  • Ticker: JFEE.F
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Steel
  • Sector: Materials
  • Market Cap: JP¥638.044b
  • Listing Market Cap: JP¥5.700b
  • Shares outstanding: 575.85m
  • Website: https://www.jfe-holdings.co.jp

Number of Employees


Location

  • JFE Holdings, Inc.
  • 2-2-3 Uchisaiwaicho
  • Chiyoda-ku
  • Tokyo
  • 100-0011
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JFEE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 2002
5411TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYSep 2002
JFRDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2002

Biography

JFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally. The company’s Steel segment produces and sells a range of steel products, including steel pipes; steel bars and wire rods; steel processed products; and raw materials, as well as operates transportation, facility maintenance, and construction businesses. Its Engineering segment provides engineering services for energy, urban environment, steel structures, industrial machines, recycling, and electricity retailing. The company’s Trading segment purchases, processes, and sells steel products, raw materials for steel production, nonferrous metal products, food, etc. JFE Holdings, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:30
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.