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

Hanwa Co., Ltd.

Taikisha Ltd.

Sangetsu Corp.

Inaba Denkisangyo Co., Ltd.

ARE Holdings, Inc.

Inabata & Co., Ltd.

Mitani Corp.

Daiichikosho Co., Ltd.

Workman Co., Ltd.

Nagase & Co., Ltd.

Trusco Nakayama Corp.

Why is ARE Holdings, Inc. ?

High Management Efficiency with a high ROCE of 8.65%

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 7.56% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 7.56% of over the last 5 years

Positive results in Mar 26

NET PROFIT(HY) At JPY 13,592 MM has Grown at 76.38%
DEBT-EQUITY RATIO (HY) Lowest at 75.17 %
DIVIDEND PER SHARE(HY) Highest at JPY 1.78

With ROCE of 5.14%, it has a very attractive valuation with a 1.22 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 77.65%, its profits have risen by 75.5% ; the PEG ratio of the company is 0.2

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, Low Return

Absolute

Risk Adjusted

Volatility

ARE Holdings, Inc.

71.38%

1.28

45.50%

Japan Nikkei 225

78.33%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.04%

EBIT Growth (5y)

7.56%

EBIT to Interest (avg)

79.16

Debt to EBITDA (avg)

6.64

Net Debt to Equity (avg)

2.16

Sales to Capital Employed (avg)

1.08

Tax Ratio

33.27%

Dividend Payout Ratio

42.75%

Pledged Shares

Institutional Holding

ROCE (avg)

8.65%

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

1.91

EV to EBIT

23.77

EV to EBITDA

21.94

EV to Capital Employed

1.22

EV to Sales

1.56

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

5.14%

ROE (Latest)

13.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

13What is working for the Company

NET PROFIT(HY)

At JPY 13,592 MM has Grown at 76.38%

DEBT-EQUITY RATIO (HY)

Lowest at 75.17 %

DIVIDEND PER SHARE(HY)

Highest at JPY 1.78

NET SALES(Q)

Highest at JPY 185,337 MM

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY -99,385 MM

INTEREST(Q)

At JPY 974 MM has Grown at 29.69%

RAW MATERIAL COST(Y)

Grown by 15.06% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.05 times

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

Net Sales

At JPY 185,337 MM has Grown at 43.15%

over average net sales of the previous four periods of JPY 129,474.25 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 13,592 MM has Grown at 76.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 185,337 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at 75.17 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 1.78

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 843 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 974 MM has Grown at 29.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY -99,385 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Inventory Turnover Ratio

Lowest at 6.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 15.06% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales