We raise our fair value estimate for wide-moat Japan Exchange Group by 4% to JPY 2,620 per share, following its full-year results and the continued weakening of the Japanese yen. JPX reported a net income of JPY 62 billion for the year, an increase of 31% over the prior year.
JPX is a vertically integrated exchange with an effective monopoly to Japan, the world’s third-largest economy.
JPX’s fate is strongly linked to Japan’s economy, which has been stagnant or declining for nearly three decades due to the country’s aging population and high public debt levels.
|
Metric
|
8697
|
00388
|
ICE
|
|---|---|---|---|
Price/Earnings (Normalized) | 32.66 | 27.81 | 23.52 |
Price/Book Value | 5.75 | 6.43 | 2.93 |
Price/Sales | 11.97 | 22.05 | 7.44 |
Price/Cash Flow | 24.83 | 29.55 | 18.03 |
|
Metric
|
8697
|
00388
|
ICE
|
|---|---|---|---|
Quick Ratio | 0.00 | 0.90 | 0.05 |
Current Ratio | 1.00 | 1.10 | 1.00 |
Interest Coverage | 786.02 | 1.41 | 4.19 |
|
Metric
|
8697
|
00388
|
ICE
|
|---|---|---|---|
Return on Assets (Normalized) | 0.07% | 3.30% | 2.34% |
Return on Equity (Normalized) | 18.69% | 23.65% | 13.01% |
Return on Invested Capital (Normalized) | 15.62% | 14.91% | 8.16% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
SPGI
| S&P Global Inc | Qxbnxqbt | Jlk | $135.3 Bil | |
ICE
| Intercontinental Exchange Inc | Jpmkzykj | Ghls | $76.9 Bil | |
CME
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MCO
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LNSTY
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LDNXF
| London Stock Exchange Group PLC | — | Dhwb | $60.7 Bil | |
COIN
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MSCI
| MSCI Inc | Wxlyfbtkmv | Ymbd | $37.3 Bil | |
NDAQ
| Nasdaq Inc | Psknzlll | Lcyjjf | $34.5 Bil | |
FDS
| FactSet Research Systems Inc | Yycrvrcdx | Cgkzlny | $16.7 Bil |
