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 Jun 25
- INTEREST(HY) At JPY 263 MM has Grown at 54.71%
- ROCE(HY) Lowest at 8.51%
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 0.33%, its profits have fallen by -0.8%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 0.33% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
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.
-0.82%
-0.30
21.97%
Japan Nikkei 225
28.54%
1.14
25.81%
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)
6.48
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
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.65% (YoY
-11What is not working for the Company
INTEREST(HY)
At JPY 263 MM has Grown at 54.71%
ROCE(HY)
Lowest at 8.51%
Here's what is working for Arata Corp.
Raw Material Cost
Fallen by 1.65% (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 136 MM
in the last five periods and Increased by 7.09% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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