AEON Hokkaido Corp. (7512) 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

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H2O Retailing Corp.

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Matsuya Co., Ltd.

AEON Hokkaido Corp.

J. FRONT RETAILING Co., Ltd.

Izutsuya Co., Ltd.

Why is AEON Hokkaido Corp. ?

The company is Net-Debt Free

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -2.37% of over the last 5 years

Negative results in May 26

INTEREST COVERAGE RATIO(Q) Lowest at 1,921.66
DEBT-EQUITY RATIO (HY) Highest at 58.81 %
INTEREST(Q) Highest at JPY 157 MM

With ROCE of 7.35%, it has a very expensive valuation with a 1.37 Enterprise value to Capital Employed

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 -11.66%, its profits have risen by 2.2% ; the PEG ratio of the company is 8.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.66% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.62%

EBIT Growth (5y)

-2.37%

EBIT to Interest (avg)

55.84

Debt to EBITDA (avg)

2.00

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

3.50

Tax Ratio

27.07%

Dividend Payout Ratio

59.73%

Pledged Shares

Institutional Holding

ROCE (avg)

8.52%

ROE (avg)

9.03%

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

1.56

EV to EBIT

18.60

EV to EBITDA

9.60

EV to Capital Employed

1.37

EV to Sales

0.38

PEG Ratio

8.72

Dividend Yield

ROCE (Latest)

7.35%

ROE (Latest)

8.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.65% (YoY

CASH AND EQV(HY)

Highest at JPY 11,552 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 15.27 times

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,921.66

DEBT-EQUITY RATIO (HY)

Highest at 58.81 %

INTEREST(Q)

Highest at JPY 157 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 778 MM

NET PROFIT(Q)

Lowest at JPY 567.67 MM

Here's what is working for AEON Hokkaido Corp.

Cash and Eqv

Highest at JPY 11,552 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 15.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.65% (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 2,098 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 AEON Hokkaido Corp.

Interest

At JPY 157 MM has Grown at 16.3%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,921.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 157 MM

in the last five periods and Increased by 16.3% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 778 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 567.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 58.81 %

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