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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lovable Marketing Group, Inc.

Nissen, Inc.

Kensoh Co., Ltd.

Future Link Network Co., Ltd.

Alpha Co., Ltd. /Okayama/

Branding Technology, Inc.

eMnet Japan Co. Ltd.

YUMEMITSUKETAI Co., Ltd.

Axel Mark, Inc.

Saylor Advertising, Inc.

Seyfert Ltd.

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

Poor Management Efficiency with a low ROCE of 2.73%

The company has been able to generate a Return on Capital Employed (avg) of 2.73% 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 -12.23

Poor long term growth as Net Sales has grown by an annual rate of 1.36% and Operating profit at 20.61% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -12.23
The company has been able to generate a Return on Equity (avg) of 2.80% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.36% and Operating profit at 20.61% over the last 5 years

Flat results in Feb 26

CASH AND EQV(HY) Lowest at JPY 1,971.8 MM
INTEREST(Q) Highest at JPY 4.87 MM

With ROE of 7.56%, it has a very attractive valuation with a 0.99 Price to Book Value

Over the past year, while the stock has generated a return of -0.26%, its profits have fallen by -2.5%

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/

-0.26%

-0.06

49.78%

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)

1.36%

EBIT Growth (5y)

20.61%

EBIT to Interest (avg)

-12.23

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

2.06

Tax Ratio

43.29%

Dividend Payout Ratio

37.78%

Pledged Shares

Institutional Holding

ROCE (avg)

2.73%

ROE (avg)

2.80%

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

0.99

EV to EBIT

9.47

EV to EBITDA

8.91

EV to Capital Employed

0.99

EV to Sales

0.33

PEG Ratio

Dividend Yield

ROCE (Latest)

10.49%

ROE (Latest)

7.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

8What is working for the Company

NET PROFIT(Q)

At JPY 51.59 MM has Grown at 134.76%

RAW MATERIAL COST(Y)

Fallen by -0.25% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.44 times

OPERATING PROFIT(Q)

Highest at JPY 88.75 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.46 %

PRE-TAX PROFIT(Q)

At JPY 81.23 MM has Grown at 75.02%

-12What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 1,971.8 MM

INTEREST(Q)

Highest at JPY 4.87 MM

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

Net Profit

At JPY 51.59 MM has Grown at 134.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 88.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 5.46 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 81.23 MM has Grown at 75.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 7.44 times

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 -0.25% (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 5.23 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 Alpha Co., Ltd. /Okayama/

Interest

At JPY 4.87 MM has Grown at 13.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 4.87 MM

in the last five periods and Increased by 13.76% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 1,971.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents