AOYAMA TRADING Co., Ltd. (8219) 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

UNITED ARROWS LTD.

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SHIMAMURA Co., Ltd.

PAL GROUP Holdings Co., Ltd.

AOKI Holdings, Inc.

NISHIMATSUYA CHAIN Co., Ltd.

AOYAMA TRADING Co., Ltd.

Chiyoda Co., Ltd.

Baroque Japan Ltd.

XEBIO Holdings Co., Ltd.

Why is AOYAMA TRADING Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.81%

The company has been able to generate a Return on Equity (avg) of 3.81% signifying low profitability per unit of shareholders funds

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.09 times

Poor long term growth as Net Sales has grown by an annual rate of 2.71% and Operating profit at 23.45% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.09 times
The company has been able to generate a Return on Equity (avg) of 3.81% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.71% and Operating profit at 23.45% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At JPY 336 MM has Grown at 13.13%
NET PROFIT(9M) At JPY 6,861.74 MM has Grown at -28.66%
ROCE(HY) Lowest at 3.9%

With ROE of 5.29%, it has a very attractive valuation with a 0.61 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 -6.19%, its profits have fallen by -14.5%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AOYAMA TRADING Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is AOYAMA TRADING Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

AOYAMA TRADING Co., Ltd.

-5.44%

-0.71

72.97%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.71%

EBIT Growth (5y)

23.45%

EBIT to Interest (avg)

19.77

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.75

Tax Ratio

28.85%

Dividend Payout Ratio

94.55%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

4.85%

ROE (avg)

3.81%

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

0.61

EV to EBIT

11.09

EV to EBITDA

6.62

EV to Capital Employed

0.65

EV to Sales

0.64

PEG Ratio

Dividend Yield

ROCE (Latest)

5.87%

ROE (Latest)

5.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.28% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 17.13 %

-12What is not working for the Company

INTEREST(HY)

At JPY 336 MM has Grown at 13.13%

NET PROFIT(9M)

At JPY 6,861.74 MM has Grown at -28.66%

ROCE(HY)

Lowest at 3.9%

DEBT-EQUITY RATIO (HY)

Highest at 11.88 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.65 times

Here's what is working for AOYAMA TRADING Co., Ltd.

Operating Profit Margin

Highest at 17.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -1.28% (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 2,023 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 AOYAMA TRADING Co., Ltd.

Interest

At JPY 336 MM has Grown at 13.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 6,861.74 MM has Grown at -28.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 11.88 %

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

Debtors Turnover Ratio

Lowest at 2.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio