Japan Smaller Capitalization Fund Inc Common Stock (JOF)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I view Japan Smaller Capitalization Fund as a closed-end fund holding Japanese small caps, not an operating business. The shares closed at $12.45 on 2026-10-13, with a $314.5M market cap. At that close, FairStock calculates a P/B of 0.90, so the market pays less than stated book value, which catches Grahams eye. FairStocks P/E of 2.46 and ROE of 43.52% look remarkable, but for a fund those can be driven by unrealized investment gains and distributions rather than repeatable operating earnings. FairStocks ROCE of 0.54% is far less exciting and suggests the underlying portfolio may not earn high returns on capital. FairStocks Graham Number of $39.65 and 68.60% margin of safety imply deep statistical cheapness if the figures are trustworthy. A 9.21% dividend yield is attractive, and beta of 0.51 indicates low historical volatility. Yet FairStocks Piotroski F-Score of 1/9 is a red flag, though many tests are not designed for closed-end funds. FairStocks Altman Z-Score of 66.82 signals very low bankruptcy risk by that calculation. D/E is N/A. The Lynch category is none because there are only 0 years of filed results, needing 3, so I cannot judge a multi-year growth trajectory. FairStock Score of 53/100 is middling. A closed-end fund can stay cheap if the discount persists and distributions are not covered. I would want NAV, portfolio turnover, expense ratio, and distribution coverage, none of which are given, before trusting the optical cheapness. The price is not expensive versus the supplied numbers, but the quality evidence is mixed.

In plain English: This fund owns shares of smaller companies in Japan. It looks mixed: it pays a very high income and sells for less than its stated book value, but its recent financial signals are weak and there are not enough yearly reports to judge a track record. At the recent price, it looks cheap compared with the supplied earnings and book-value numbers, though those numbers can be volatile for a fund.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer