Belc Co. Faces Financial Challenges Amid Strong Management Efficiency and Low Debt Profile

Belc Co., Ltd., a small-cap player in the retailing industry, has recently undergone an adjustment in evaluation, reflecting a shift in its market position. The company has demonstrated a high level of management efficiency, evidenced by a robust Return on Capital Employed (ROCE) of 12.88%. Additionally, Belc Co. maintains a low debt profile, with sufficient cash reserves to meet its debt obligations. Despite these strengths, the company faced challenges in its financial performance for the quarter ending May 2025, which has influenced the recent revision in its score. Key metrics indicate a notable increase in interest expenses, growing by 37.84%, alongside a low interest coverage ratio of 10,623.64. Furthermore, the debtors turnover ratio has also reached a low of 60.87%, suggesting potential liquidity concerns. While Belc Co. has generated a return of 21.14% over the past year, this performance lags behind the broader market, specifically the Japan Nikkei 225, which recorded returns of 33.06%. The stock's valuation remains attractive with a PEG ratio of 0.7, although it is trading at a premium compared to its peers' historical averages. Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.