ScoreWhy is Arata Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 60.47
2
Poor long term growth as Net Sales has grown by an annual rate of 4.37% over the last 5 years
3
Negative results in Dec 25
- ROCE(HY) Lowest at 7.38%
- DEBT-EQUITY RATIO (HY) Highest at 16.14 %
- INVENTORY TURNOVER RATIO(HY) Lowest at 15.3 times
4
With ROCE of 12.03%, it has a very attractive valuation with a 0.93 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 -8.45%, its profits have fallen by -0.8%
5
Below par performance in long term as well as near term
- Along with generating -8.45% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Arata Corp. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arata Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arata Corp.
-100.0%
-0.40
21.45%
Japan Nikkei 225
38.94%
1.38
28.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.37%
EBIT Growth (5y)
9.96%
EBIT to Interest (avg)
60.47
Debt to EBITDA (avg)
0.65
Net Debt to Equity (avg)
0.07
Sales to Capital Employed (avg)
6.46
Tax Ratio
33.65%
Dividend Payout Ratio
32.95%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.62%
ROE (avg)
9.12%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.92
EV to EBIT
7.72
EV to EBITDA
5.85
EV to Capital Employed
0.93
EV to Sales
0.12
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.03%
ROE (Latest)
8.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.81% (YoY
CASH AND EQV(HY)
Highest at JPY 51,064 MM
NET SALES(Q)
Highest at JPY 264,986 MM
-14What is not working for the Company
ROCE(HY)
Lowest at 7.38%
DEBT-EQUITY RATIO
(HY)
Highest at 16.14 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 15.3 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.15 times
INTEREST(Q)
Highest at JPY 171 MM
Here's what is working for Arata Corp.
Net Sales
Highest at JPY 264,986 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 51,064 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 1.81% (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 Arata Corp.
Interest
Highest at JPY 171 MM
in the last five periods and Increased by 6.88% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 16.14 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 15.3 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.15 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at JPY 0.1 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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