ADVAN GROUP CO., LTD (7463) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mitsuuroko Group Holdings Co., Ltd.

Happinet Corp.

Totech Corp.

Matsuda Sangyo Co., Ltd.

Senshu Electric Co., Ltd.

Tachibana Eletech Co., Ltd.

SIIX Corp.

Wakita & Co., Ltd.

ADVAN GROUP CO., LTD

Maruka Furusato Corp.

Japan Pulp & Paper Co., Ltd.

Why is ADVAN GROUP CO., LTD ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -2.59% and Operating profit at -9.72% over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 75.59 MM has Grown at 21.91%
ROCE(HY) Lowest at -0.32%
INTEREST COVERAGE RATIO(Q) Lowest at 1,945.69

With ROE of 15.13%, it has a very attractive valuation with a 0.73 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 -11.12%, its profits have risen by 75.3% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.12% 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 ADVAN GROUP CO., LTD should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is ADVAN GROUP CO., LTD for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ADVAN GROUP CO., LTD

-11.29%

-0.50

23.22%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.59%

EBIT Growth (5y)

-9.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.28

Tax Ratio

29.99%

Dividend Payout Ratio

23.66%

Pledged Shares

Institutional Holding

ROCE (avg)

8.49%

ROE (avg)

10.84%

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

0.73

EV to EBIT

14.46

EV to EBITDA

11.30

EV to Capital Employed

0.76

EV to Sales

2.46

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

5.26%

ROE (Latest)

15.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 4,079.05 MM

NET PROFIT(9M)

At JPY 5,150.41 MM has Grown at 59.79%

-22What is not working for the Company

INTEREST(HY)

At JPY 75.59 MM has Grown at 21.91%

ROCE(HY)

Lowest at -0.32%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,945.69

PRE-TAX PROFIT(Q)

At JPY 765.66 MM has Fallen at -50.17%

DEBT-EQUITY RATIO (HY)

Highest at 18.48 %

NET SALES(Q)

Lowest at JPY 4,103.78 MM

NET PROFIT(Q)

Lowest at JPY 880.18 MM

Here's what is working for ADVAN GROUP CO., LTD

Operating Cash Flow

Highest at JPY 4,079.05 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Here's what is not working for ADVAN GROUP CO., LTD

Interest

At JPY 75.59 MM has Grown at 21.91%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 880.18 MM has Fallen at -56.79%

over average net sales of the previous four periods of JPY 2,036.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 4,103.78 MM has Fallen at -11.36%

over average net sales of the previous four periods of JPY 4,629.71 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 1,945.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 765.66 MM has Fallen at -50.17%

over average net sales of the previous four periods of JPY 1,536.41 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Lowest at JPY 4,103.78 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Profit

Lowest at JPY 880.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 18.48 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio