Adish Co. Ltd. (7093) 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

Edia Co., Ltd.

Sockets, Inc.

Adish Co. Ltd.

IPS Co., Ltd.

bBreak Systems Co. Ltd.

Hatena Co., Ltd.

Silver Egg Technology Co., Ltd.

CS-C. Co., Ltd.

Ekitan & Co., Ltd.

LIGUA, Inc.

FueTrek Co., Ltd.

Why is Adish Co. Ltd. ?

Poor Management Efficiency with a low ROE of 2.93%

The company has been able to generate a Return on Equity (avg) of 2.93% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -14.89% of over the last 5 years

With a growth in Net Sales of 7.55%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
PRE-TAX PROFIT(Q) At JPY 10.21 MM has Grown at 273.56%
ROCE(HY) Highest at 3.23%
RAW MATERIAL COST(Y) Fallen by -4.26% (YoY)

With ROE of -0.80%, it has a attractive valuation with a 2.19 Price to Book Value

Over the past year, while the stock has generated a return of -19.46%, its profits have risen by 96.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.46% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Adish Co. Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Adish Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Adish Co. Ltd.

-19.29%

-0.70

55.82%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.31%

EBIT Growth (5y)

-14.89%

EBIT to Interest (avg)

-4.48

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

4.72

Tax Ratio

4.89%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.31%

ROE (avg)

2.93%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.19

EV to EBIT

280.19

EV to EBITDA

43.98

EV to Capital Employed

3.26

EV to Sales

0.25

PEG Ratio

Dividend Yield

ROCE (Latest)

1.16%

ROE (Latest)

-0.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 10.21 MM has Grown at 273.56%

ROCE(HY)

Highest at 3.23%

RAW MATERIAL COST(Y)

Fallen by -4.26% (YoY

NET PROFIT(Q)

At JPY 4.23 MM has Grown at 133.04%

-7What is not working for the Company

INTEREST(Q)

At JPY 1.06 MM has Grown at 12.22%

CASH AND EQV(HY)

Lowest at JPY 946.51 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1,806.62 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.33 times

Here's what is working for Adish Co. Ltd.

Pre-Tax Profit

At JPY 10.21 MM has Grown at 273.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 4.23 MM has Grown at 133.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -4.26% (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

Here's what is not working for Adish Co. Ltd.

Interest

At JPY 1.06 MM has Grown at 12.22%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 946.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1,806.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 7.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio