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 3.64% over the last 5 years
3
The company has declared Negative results for the last 5 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Lowest at 1,468.1
- DEBT-EQUITY RATIO (HY) Highest at 11.3 %
- INTEREST(Q) Highest at JPY 210 MM
4
With ROCE of 9.33%, it has a very attractive valuation with a 0.90 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 -19.70%, its profits have fallen by -20.5%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -19.70% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
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.
-19.7%
-1.52
16.65%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.64%
EBIT Growth (5y)
1.73%
EBIT to Interest (avg)
60.47
Debt to EBITDA (avg)
0.65
Net Debt to Equity (avg)
0.07
Sales to Capital Employed (avg)
6.43
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
12
Industry P/E
Price to Book Value
0.89
EV to EBIT
9.68
EV to EBITDA
7.08
EV to Capital Employed
0.90
EV to Sales
0.13
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.33%
ROE (Latest)
7.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
NET PROFIT(Q)
At JPY 2,370 MM has Grown at 146.88%
RAW MATERIAL COST(Y)
Fallen by -0.6% (YoY
CASH AND EQV(HY)
Highest at JPY 63,679 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 6.23 times
DIVIDEND PER SHARE(HY)
Highest at JPY 6.23
PRE-TAX PROFIT(Q)
At JPY 3,224 MM has Grown at 74.84%
-16What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,468.1
DEBT-EQUITY RATIO
(HY)
Highest at 11.3 %
INTEREST(Q)
Highest at JPY 210 MM
OPERATING PROFIT(Q)
Lowest at JPY 3,083 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.3 %
Here's what is working for Arata Corp.
Net Profit
At JPY 2,370 MM has Grown at 146.88%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Pre-Tax Profit
At JPY 3,224 MM has Grown at 74.84%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Cash and Eqv
Highest at JPY 63,679 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 6.23 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at JPY 6.23
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -0.6% (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
At JPY 210 MM has Grown at 22.81%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,468.1
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 210 MM
in the last five periods and Increased by 22.81% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 3,083 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 1.3 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at 11.3 %
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
Non Operating Income
Highest at JPY 0.49 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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