What is JFE Holdings Financial Strength?
JFE Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
JFE Holdings Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
JFE Holdings's Interest Coverage for the quarter that ended in Mar. 2024 was 7.22.
JFE Holdings's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.35.
As of today, JFE Holdings's Altman Z-Score is 1.93.
Competitive Comparison of JFE Holdings's Financial Strength
For the Steel subindustry, JFE Holdings's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
JFE Holdings's Financial Strength Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, JFE Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where JFE Holdings's Financial Strength falls into.
JFE Holdings Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
JFE Holdings's Interest Expense for the
months ended in Mar. 2024 was 円-5,757 Mil. Its Operating Income for the
months ended in Mar. 2024 was 円41,580 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was 円1,403,849 Mil.
JFE Holdings's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
JFE Holdings's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
JFE Holdings has a Z-score of 1.93, indicating it is in Grey Zones. This implies that JFE Holdings is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 1.93 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
JFE Holdings (TSE:5411) Business Description
Traded in Other Exchanges
Address
2-2-3 Uchisaiwaicho, Chiyoda-ku, Tokyo, JPN, 100-0011
JFE Holdings Inc is a Japan-based company operating through three subsidiaries, namely JFE Steel, JFE Engineering and JFE Shoji. JFE Steel produces and sells a wide range of steel products and raw materials, and also operates peripheral businesses such as transporting, maintenance and construction of equipment. JFE Engineering provides engineering services for energy, urban environment, recycle, steel construction and industrial machines and systems. JFE Shoji purchases, processes and sells steel products, raw materials for steel production, nonferrous metal products, food, etc. Steel manufacturing and trading account for majority of JFE's revenue. The company generates most of its sales from the Japanese market.
JFE Holdings (TSE:5411) Headlines
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