Updated: Feb 21, 2022
Image source: https://japfa.com
Chart (left): Japfa's financials (monthly) Chart (right): Japfa's Daily price chart
Chart on the left shows some of the Japfa's financial metrics on monthly basis. The stock is currently trading at the lower end of its P/S and P/B valuation.
Revenue had been gradually growing over the past 5 years at compounded rate of 8% p.a. Its Operating Margin is relatively stable at 8-9% and EPS had been improving gradually the past 3 years.
Its debt is a little to the high side but not too high to cause any concern at the moment.
Share price is trading at 70% discount to its Asset Value and Earnings Power Value.
On the right, MACD to price divergence indicate possible end to its correction. Its share price is about 65% correlated to the price of Lean Hogs futures, which had risen about 45% from its low in early Dec'21. This could be a potential catalyst to Japfa's share price. Possible support @ $0.58 and resistance @ $0.75.
As usual, this writeup was broadcast to Clients on 15 Feb 2022 but posted here only on 21 Feb 2022.
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