ARE Holdings, Inc. (5857) 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

Inaba Denkisangyo Co., Ltd.

Sangetsu Corp.

Mitani Corp.

ARE Holdings, Inc.

Inabata & Co., Ltd.

Workman Co., Ltd.

Hanwa Co., Ltd.

Daiichikosho Co., Ltd.

Taikisha Ltd.

Nagase & Co., Ltd.

Trusco Nakayama Corp.

Why is ARE Holdings, Inc. ?

Positive results in Jun 26

NET PROFIT(HY) At JPY 13,484 MM has Grown at 105.45%
ROCE(HY) Highest at 16.09%
RAW MATERIAL COST(Y) Fallen by -38.38% (YoY)

With ROCE of 8.74%, it has a very attractive valuation with a 1.11 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 83.02%, its profits have risen by 70.6% ; the PEG ratio of the company is 0.2

Market Beating Performance

The stock has generated a return of 83.02% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to ARE Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is ARE Holdings, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

ARE Holdings, Inc.

89.39%

1.48

47.29%

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)

28.17%

EBIT Growth (5y)

6.65%

EBIT to Interest (avg)

19.66

Debt to EBITDA (avg)

6.96

Net Debt to Equity (avg)

2.16

Sales to Capital Employed (avg)

1.12

Tax Ratio

31.34%

Dividend Payout Ratio

39.62%

Pledged Shares

Institutional Holding

ROCE (avg)

7.66%

ROE (avg)

14.38%

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

1.20

EV to EBIT

12.74

EV to EBITDA

11.75

EV to Capital Employed

1.11

EV to Sales

0.79

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

8.74%

ROE (Latest)

10.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

18What is working for the Company

NET PROFIT(HY)

At JPY 13,484 MM has Grown at 105.45%

ROCE(HY)

Highest at 16.09%

RAW MATERIAL COST(Y)

Fallen by -38.38% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 105.1 %

NET SALES(Q)

Highest at JPY 197,177 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 1,434 MM has Grown at 12.65%

OPERATING CASH FLOW(Y)

Lowest at JPY -42,824 MM

Here's what is working for ARE Holdings, Inc.

Net Sales

At JPY 197,177 MM has Grown at 38.37%

over average net sales of the previous four periods of JPY 142,498 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 13,484 MM has Grown at 105.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 197,177 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at 105.1 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -38.38% (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 852 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 ARE Holdings, Inc.

Interest

At JPY 1,434 MM has Grown at 12.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY -42,824 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)