Alpha Co., Ltd. /Okayama/ (4760) 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

eMnet Japan Co. Ltd.

Nissen, Inc.

Alpha Co., Ltd. /Okayama/

Future Link Network Co., Ltd.

Saylor Advertising, Inc.

Kensoh Co., Ltd.

YUMEMITSUKETAI Co., Ltd.

Branding Technology, Inc.

Seyfert Ltd.

Axel Mark, Inc.

Lovable Marketing Group, Inc.

Why is Alpha Co., Ltd. /Okayama/ ?

Poor Management Efficiency with a low ROCE of 1.39%

The company has been able to generate a Return on Capital Employed (avg) of 1.39% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -15.61

Poor long term growth as Net Sales has grown by an annual rate of -2.00% and Operating profit at 22.97% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -15.61
The company has been able to generate a Return on Equity (avg) of 1.62% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.00% and Operating profit at 22.97% over the last 5 years

Flat results in May 25

INTEREST(HY) At JPY 7.69 MM has Grown at 40.98%
RAW MATERIAL COST(Y) Grown by 5.72% (YoY)
CASH AND EQV(HY) Lowest at JPY 2,107.92 MM

With ROE of 8.08%, it has a very attractive valuation with a 1.04 Price to Book Value

Over the past year, while the stock has generated a return of 6.75%, its profits have risen by 328.8% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Alpha Co., Ltd. /Okayama/ should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Alpha Co., Ltd. /Okayama/ for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Alpha Co., Ltd. /Okayama/

6.38%

-0.03

60.99%

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)

-2.00%

EBIT Growth (5y)

22.97%

EBIT to Interest (avg)

-12.23

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

2.03

Tax Ratio

43.29%

Dividend Payout Ratio

30.17%

Pledged Shares

Institutional Holding

ROCE (avg)

2.73%

ROE (avg)

1.62%

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

1.04

EV to EBIT

14.85

EV to EBITDA

13.65

EV to Capital Employed

1.03

EV to Sales

0.32

PEG Ratio

0.04

Dividend Yield

ROCE (Latest)

6.93%

ROE (Latest)

8.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 36.38 %

INVENTORY TURNOVER RATIO(HY)

Highest at 8.18%

NET SALES(Q)

Highest at JPY 1,652.23 MM

-13What is not working for the Company

INTEREST(HY)

At JPY 7.69 MM has Grown at 40.98%

RAW MATERIAL COST(Y)

Grown by 5.72% (YoY

CASH AND EQV(HY)

Lowest at JPY 2,107.92 MM

Here's what is working for Alpha Co., Ltd. /Okayama/

Net Sales

Highest at JPY 1,652.23 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at 36.38 %

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 8.18%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Alpha Co., Ltd. /Okayama/

Interest

At JPY 4.36 MM has Grown at 31.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 4.36 MM

in the last five periods and Increased by 31.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 2,107.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 5.72% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales