Why is Area Quest, Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -1.50% and Operating profit at -19.52%
2
Flat results in Jun 25
- NET PROFIT(9M) At JPY 92.53 MM has Grown at -29.48%
- INTEREST(Q) Highest at JPY 5.79 MM
3
With ROE of 10.17%, it has a expensive valuation with a 2.33 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 10.79%, its profits have risen by 18% ; the PEG ratio of the company is 0.6
4
Underperformed the market in the last 1 year
- The stock has generated a return of 10.79% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
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.
9.29%
-0.20
65.99%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.50%
EBIT Growth (5y)
-19.52%
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
42.86%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.77%
ROE (avg)
8.85%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
2.33
EV to EBIT
23.51
EV to EBITDA
11.49
EV to Capital Employed
2.96
EV to Sales
1.14
PEG Ratio
0.59
Dividend Yield
NA
ROCE (Latest)
12.57%
ROE (Latest)
10.17%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
No Trend
Technical Movement
4What is working for the Company
NET PROFIT(HY)
Higher at JPY 93.9 MM
RAW MATERIAL COST(Y)
Fallen by -4.36% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 16.68%
-13What is not working for the Company
NET PROFIT(9M)
At JPY 92.53 MM has Grown at -29.48%
INTEREST(Q)
Highest at JPY 5.79 MM
Here's what is working for Area Quest, Inc.
Net Profit
Higher at JPY 93.9 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Debtors Turnover Ratio
Highest at 16.68%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -4.36% (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
Here's what is not working for Area Quest, Inc.
Interest
At JPY 5.79 MM has Grown at 14.08%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 5.79 MM
in the last five periods and Increased by 14.08% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






