A.D. Works Group Co., Ltd. (2982) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

FaithNetwork Co., Ltd.

Ascot Corp.

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Tenpo Innovation Co., Ltd.

A.D. Works Group Co., Ltd.

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Mainichi Comnet Co., Ltd.

Global Link Management, Inc.

&Do Holdings Co., Ltd.

Why is A.D. Works Group Co., Ltd. ?

Strong Long Term Fundamental Strength with a 15.00% CAGR growth in Net Sales

With ROE of 8.45%, it has a very attractive valuation with a 0.78 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 63.28%, its profits have risen by 13% ; the PEG ratio of the company is 0.8

Market Beating Performance

The stock has generated a return of 63.28% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to A.D. Works Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is A.D. Works Group Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

A.D. Works Group Co., Ltd.

63.28%

1.85

44.56%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.00%

EBIT Growth (5y)

8.68%

EBIT to Interest (avg)

3.72

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

37.00%

Dividend Payout Ratio

29.85%

Pledged Shares

Institutional Holding

ROCE (avg)

24.33%

ROE (avg)

5.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.78

EV to EBIT

1.90

EV to EBITDA

1.78

EV to Capital Employed

0.60

EV to Sales

0.12

PEG Ratio

0.75

Dividend Yield

ROCE (Latest)

31.54%

ROE (Latest)

8.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

NET SALES(HY)

At JPY 34,566.56 MM has Grown at 18.8%

NET PROFIT(HY)

At JPY 1,111.4 MM has Grown at 62.2%

ROCE(HY)

Highest at 16.86%

RAW MATERIAL COST(Y)

Fallen by -20.49% (YoY

CASH AND EQV(HY)

Highest at JPY 25,008.4 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.38 times

DIVIDEND PER SHARE(HY)

Highest at JPY 350.81

EPS(Q)

Highest at JPY 20.33

-14What is not working for the Company

INTEREST(HY)

At JPY 460.26 MM has Grown at 30.33%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 48.69%

INTEREST COVERAGE RATIO(Q)

Lowest at 379.45

PRE-TAX PROFIT(Q)

Lowest at JPY 580.16 MM

NET PROFIT(Q)

Lowest at JPY 402.71 MM

Here's what is working for A.D. Works Group Co., Ltd.

Net Sales

At JPY 34,566.56 MM has Grown at 18.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 20.33

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 25,008.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.38 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 350.81

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -20.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 59.8 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for A.D. Works Group Co., Ltd.

Interest

At JPY 460.26 MM has Grown at 30.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 379.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Dividend Payout Ratio

Lowest at 48.69% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Pre-Tax Profit

Lowest at JPY 580.16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 402.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)