Ainavo Holdings Co., Ltd. (7539) 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

Moriya Transportation Engineering & Manufacturing Co., Ltd.

TAKARA STANDARD CO., LTD.

Bunka Shutter Co. Ltd.

Komatsu Wall Industry Co., Ltd.

Ainavo Holdings Co., Ltd.

KVK Corp.

Maezawa Kasei Industries Co., Ltd.

Danto Holdings Corp.

INABA SEISAKUSHO Co., Ltd.

Noda Corp.

Nihon Flush Co., Ltd.

Why is Ainavo Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.77%

The company has been able to generate a Return on Equity (avg) of 5.77% signifying low profitability per unit of shareholders funds

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

Poor long term growth as Operating profit has grown by an annual rate 0.23% of over the last 5 years

Flat results in Jun 25

INTEREST(HY) At JPY 9.95 MM has Grown at 47.96%

With ROE of 5.80%, it has a very attractive valuation with a 0.63 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 18.35%, its profits have risen by 4.2%

Underperformed the market in the last 1 year

The stock has generated a return of 18.35% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ainavo Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Ainavo Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ainavo Holdings Co., Ltd.

-100.0%

0.77

21.15%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.51%

EBIT Growth (5y)

0.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

3.45

Tax Ratio

46.59%

Dividend Payout Ratio

35.92%

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

14.04%

ROE (avg)

5.77%

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

0.63

EV to EBIT

2.05

EV to EBITDA

1.81

EV to Capital Employed

0.32

EV to Sales

0.05

PEG Ratio

Dividend Yield

ROCE (Latest)

15.68%

ROE (Latest)

5.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

18What is working for the Company

ROCE(HY)

Highest at 6.7%

PRE-TAX PROFIT(Q)

At JPY 512.5 MM has Grown at 223%

RAW MATERIAL COST(Y)

Fallen by -8.51% (YoY

CASH AND EQV(HY)

Highest at JPY 26,157.52 MM

DEBT-EQUITY RATIO (HY)

Lowest at -46.57 %

INVENTORY TURNOVER RATIO(HY)

Highest at 16.54%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.59%

NET PROFIT(Q)

At JPY 338.26 MM has Grown at 101.05%

-8What is not working for the Company

INTEREST(HY)

At JPY 9.95 MM has Grown at 47.96%

Here's what is working for Ainavo Holdings Co., Ltd.

Pre-Tax Profit

At JPY 512.5 MM has Grown at 223%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 338.26 MM has Grown at 101.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 26,157.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -46.57 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 16.54%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.59%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.51% (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 Ainavo Holdings Co., Ltd.

Interest

At JPY 9.95 MM has Grown at 47.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)