ScoreWhy is ARE Holdings, Inc. ?
1
High Management Efficiency with a high ROCE of 8.71%
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate -0.25% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
3
Poor long term growth as Operating profit has grown by an annual rate -0.25% of over the last 5 years
4
The company has declared Positive results for the last 3 consecutive quarters
- ROCE(HY) Highest at 15.14%
- RAW MATERIAL COST(Y) Fallen by -92.23% (YoY)
- NET SALES(Q) Highest at JPY 146,416 MM
5
With ROCE of 5.11%, it has a very attractive valuation with a 1.05 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 70.89%, its profits have risen by 68.1% ; the PEG ratio of the company is 0.2
6
Market Beating Performance
- The stock has generated a return of 70.89% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow much should you hold?
- 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.
70.89%
1.67
41.01%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
28.46%
EBIT Growth (5y)
-0.25%
EBIT to Interest (avg)
79.16
Debt to EBITDA (avg)
6.64
Net Debt to Equity (avg)
2.16
Sales to Capital Employed (avg)
1.09
Tax Ratio
33.27%
Dividend Payout Ratio
42.75%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.65%
ROE (avg)
14.47%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.15
EV to EBIT
20.52
EV to EBITDA
18.06
EV to Capital Employed
1.05
EV to Sales
0.83
PEG Ratio
0.15
Dividend Yield
NA
ROCE (Latest)
5.11%
ROE (Latest)
11.33%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
ROCE(HY)
Highest at 15.14%
RAW MATERIAL COST(Y)
Fallen by -92.23% (YoY
NET SALES(Q)
Highest at JPY 146,416 MM
OPERATING PROFIT(Q)
Highest at JPY 13,779 MM
OPERATING PROFIT MARGIN(Q)
Highest at 9.41 %
PRE-TAX PROFIT(Q)
Highest at JPY 12,231 MM
NET PROFIT(Q)
Highest at JPY 8,720 MM
EPS(Q)
Highest at JPY 102.14
-19What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JPY -111,472 MM
NET SALES(HY)
At JPY 247,535 MM has Grown at -11.81%
INTEREST(Q)
At JPY 751 MM has Grown at 196.84%
DEBT-EQUITY RATIO
(HY)
Highest at 310.48 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.18 times
Here's what is working for ARE Holdings, Inc.
Pre-Tax Profit
At JPY 12,231 MM has Grown at 102.82%
over average net sales of the previous four periods of JPY 6,030.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
Highest at JPY 146,416 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 146,416 MM has Grown at 16.18%
over average net sales of the previous four periods of JPY 126,023.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 13,779 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 9.41 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 12,231 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 8,720 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 8,720 MM has Grown at 87.99%
over average net sales of the previous four periods of JPY 4,638.5 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 102.14
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -92.23% (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 787 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 ARE Holdings, Inc.
Interest
At JPY 751 MM has Grown at 196.84%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Cash Flow
Lowest at JPY -111,472 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Debt-Equity Ratio
Highest at 310.48 %
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
Debtors Turnover Ratio
Lowest at 1.18 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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