Stock Diagnosis I tried to figure out when is the best time to buy 2914 Japan Tobacco Inc!


Hello everyone. This is Olivertomo!

JT’s core business is tobacco in Japan, but they also have other businesses such as food and pharmaceuticals.

The company’s stock price has been declining steadily over the past five years, but I think it is stable because cigarettes are a luxury item that is hard to quit.

I will now explain when to buy and how to buy.

Recommended for the following people
  • Want to invest in Japanese stocks, but don’t know which ones to buy.
  • Want to invest in Japanese stocks, but don’t know which products to buy
  • Want to buy investment trusts, but don’t know which ones to buy

Contents of this article
  • When is the best time to buy Japan Tobacco Inc.
  • How should I buy?
  • About Japan Tobacco Inc.
  • The company’s business
  • Strengths of the Company
  • Indicators
  • Shareholder Benefits
  • Inclusion of Investment Trusts
  • Personal Perspective

I have been investing for three years and have experience in the securities industry.

By reading this article, you’ll learn all you need to know about the company and when to buy Japan Tobacco!


When is the best time to buy Japan Tobacco Inc.


In conclusion, I believe that you should buy the company after this year.

This is because the global spread of infectious diseases and the associated concern for health issues have been discussed recently.

In fact, it is very difficult to find a good time to buy this stock where many people who are investing for the long term have unrealized losses.

Since many parts of the company rely on tobacco, I have high hopes for future business reforms.

How should I buy?

This suggestion for Japanese people so you can skip this sector.

You should avoid using the NISA system to buy this stock.

Although this stock is always at the top of the NISA ranking in Japan, where dividends can be received tax-free, I do not recommend it.

This is because we believe that it has no future potential.

And since the image of smokers is worsening year by year, it is also a difficult situation.

If you want to buy, it is better to buy with a specific account.

About Japan Tobacco Inc.


Japan Tobacco Inc. was established as a private company in 1985 when the state-run business was separated from the government.

However, according to the law, one third of the shares are owned by the government.

It is the only company in Japan that has been granted the right to manufacture cigarettes, and has a 60% share of the domestic market.

The company is also focusing on overseas strategies and is the fourth largest in the world.

Company’s business

The company is engaged in four major businesses.

1 Domestic Tobacco Business

The domestic tobacco business encompasses everything from the manufacture to the sale of cigarettes, and also includes the import of cigarettes from overseas.

We are also developing smoke-free tobacco products and researching ways to be considerate to those around us.

2 Overseas Tobacco Business

We are engaged in the manufacture and sale of cigarettes overseas, and have affiliates around the world through corporate acquisitions.

The number of affiliated companies is increasing, and sales are stable.

3 Pharmaceuticals business

This business is engaged in the research, development, and sales of pharmaceuticals for medical use.

Research is conducted by Japan Tobacco Inc. and manufacturing and sales are conducted by Torii Pharmaceutical Co.

We have had a business alliance with Torii Pharmaceutical since 1999.

4 Processed food business

In 2008, we entered the processed food business by acquiring shares in Fuji Food Industries Co.

Tablemark manufactures and sells frozen and room temperature processed foods and seasonings.

The company has 32 of its own factories in Japan and overseas, and provides safe and reliable products.

Strengths of the company

Since the company is engaged in global business, I think one of the strengths of the company is that even if sales decline in Japan, the company is able to recover through overseas earnings.

Another strength of the company is its stable financial base and the fact that the Japanese government holds shares in the company.



As of 5/19, the PER is 12.44x PBR is 1.67x and the dividend yield is 7.07%.

The dividend payout ratio is quite large, so I am concerned about maintaining the dividend in the future.

Shareholder benefits

By holding 100 shares for at least one year in the December rights month, you can receive 2,500 yen worth of the company’s products once a year.

It is nice to know that the amount increases as the number of shares increases.

Although it is limited to residents of Japan, I think it is a good idea to receive the benefit in addition to dividends.

Inclusion of investment trusts

Investment trusts can be started with a small amount of money, so even beginners can get started.

By accumulating monthly, you can diversify your risk, so I recommend it.

I have selected investment trusts for inclusion at my own discretion, so please refer to them for your reference.

Nikko Asset Management Nikko Evolution

Nikko Asset Management Index Fund 225

Mitsubishi UFJ International Investment Trust Mitsubishi UFJ Index 225 Open

Personal Viewpoint

Companies that have developed around the tobacco industry are now facing situations where they are forced to diversify their operations.

This is probably due to international environmental concerns and health initiatives.

However, it is a financially stable company with a stable dividend.

The stock price has been declining steadily for the last five years, and we need to keep a close eye on when it will stop declining.

For those who have been holding the stock for a long period of time, I believe that there will be more difficult times ahead, but I believe that the light will come.



  • Stocks should be bought after next year.
  • Domestic demand in Japan is at a turning point.
  • The company has a strong overseas revenue base.

This is a summary of Japan Tobacco Inc.

Investing is your own responsibility. Make your own final decision after referring to various opinions.

I will continue to introduce Japanese companies in the future, so please stay tuned.

Thank you for reading to the end!