Why is Area Quest, Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 2.70% and Operating profit at 5.72%
2
Flat results in Mar 26
- INTEREST(Q) At JPY 5.04 MM has Grown at 26.63%
- RAW MATERIAL COST(Y) Grown by 13.35% (YoY)
3
With ROE of 7.47%, it has a fair valuation with a 1.96 Price to Book Value
- 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 -5.49%, its profits have fallen by -17%
4
Below par performance in long term as well as near term
- Along with generating -5.49% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Area Quest, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Area Quest, Inc.
-6.56%
-0.04
70.58%
Japan Nikkei 225
81.96%
2.98
27.54%
Quality key factors
Factor
Value
Sales Growth (5y)
2.70%
EBIT Growth (5y)
5.72%
EBIT to Interest (avg)
37.03
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
41.41%
Dividend Payout Ratio
42.85%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.77%
ROE (avg)
8.85%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
1.96
EV to EBIT
8.77
EV to EBITDA
6.07
EV to Capital Employed
2.30
EV to Sales
1.03
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
26.24%
ROE (Latest)
7.47%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
6What is working for the Company
ROCE(HY)
Highest at 10.33%
NET PROFIT(9M)
Higher at JPY 129.8 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 1.7 %
-5What is not working for the Company
INTEREST(Q)
At JPY 5.04 MM has Grown at 26.63%
RAW MATERIAL COST(Y)
Grown by 13.35% (YoY
Here's what is working for Area Quest, Inc.
Net Profit
At JPY 129.8 MM has Grown at 55.21%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at 1.7 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Profit
Higher at JPY 129.8 MM
than preceding 12 month period ended Mar 2026MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Here's what is not working for Area Quest, Inc.
Interest
At JPY 5.04 MM has Grown at 26.63%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 13.35% (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






