Japan Post Holdings Co., Ltd. : Attractive price levels
May 20, 2020 at 03:43 am EDT
By
Share
BUY
Target price hit
Entry price
Target
Stop-loss
Potential
¥760
¥914
¥700
+20.26%
Japan Post Holdings Co., Ltd. shares are closing near attractive entry levels for a medium term horizon. Investors could regard the decline over the past weeks as a buying opportunity.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at JPY 759.5, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the JPY 746.7 support.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● The stock, which is currently worth 2020 to -4.06 times its sales, is clearly overvalued in comparison with peers.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● This company will be of major interest to investors in search of a high dividend stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company does not generate enough profits, which is an alarming weak point.
● Below the resistance at 977 JPY, the stock shows a negative configuration when looking looking at the weekly chart.
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Japan Post Holdings Co., Ltd. is a diversified group organized around 4 areas of activity:
- life insurance benefits (57.3% of revenues);
- postal and logistical services (23.9%): collection, transportation and delivery of mail (letters, postcards, etc.), shipping and delivery of parcels. The group also offers logistics and transport services;
- banking services (17.5%): corporate, investment and market banking, syndicated loans, sales of structured products, fund management, mortgage banking, credit card issuance, etc.;
- other (1.3%).