ScoreWhy is Arata Corp. ?
1
Weak Long Term Fundamental Strength with a 3.64% CAGR growth in Net Sales over the last 5 years
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 6 consecutive quarters
- DEBT-EQUITY RATIO (HY) Highest at 26.58 %
- INTEREST(Q) Highest at JPY 249 MM
- PRE-TAX PROFIT(Q) Lowest at JPY 3,151 MM
4
With ROCE of 9.33%, it has a very attractive valuation with a 0.75 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 -18.79%, its profits have fallen by -20.5%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -18.79% 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.
-20.28%
-1.24
17.60%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.64%
EBIT Growth (5y)
1.73%
EBIT to Interest (avg)
51.12
Debt to EBITDA (avg)
0.60
Net Debt to Equity (avg)
0.07
Sales to Capital Employed (avg)
6.34
Tax Ratio
31.35%
Dividend Payout Ratio
37.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.38%
ROE (avg)
9.12%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.71
EV to EBIT
8.08
EV to EBITDA
5.91
EV to Capital Employed
0.75
EV to Sales
0.11
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.33%
ROE (Latest)
7.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
CASH AND EQV(HY)
Highest at JPY 65,327 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 5.93 times
-15What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 26.58 %
INTEREST(Q)
Highest at JPY 249 MM
PRE-TAX PROFIT(Q)
Lowest at JPY 3,151 MM
NET PROFIT(Q)
Lowest at JPY 2,039 MM
EPS(Q)
Lowest at JPY 60.86
Here's what is working for Arata Corp.
Cash and Eqv
Highest at JPY 65,327 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 5.93 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at JPY 1,367 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Arata Corp.
Interest
At JPY 249 MM has Grown at 18.57%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 249 MM
in the last five periods and Increased by 18.57% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
Lowest at JPY 3,151 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 2,039 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 60.86
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at 26.58 %
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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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