Arealink Co., Ltd. (8914) 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

Hoosiers Holdings Co., Ltd.

ESLEAD CORP.

Loadstar Capital KK

GA technologies Co., Ltd.

SRE Holdings Corp.

Mirarth Holdings, Inc.

Arealink Co., Ltd.

JSB Co., Ltd.

Miyakoshi Holdings, Inc.

CRE, Inc. (Japan)

Sanei Architecture Planning Co., Ltd.

Why is Arealink Co., Ltd. ?

Weak Long Term Fundamental Strength with a 8.20% CAGR growth in Net Sales

Poor long term growth as Net Sales has grown by an annual rate of 8.20%

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 31.29 %
INTEREST(Q) Highest at JPY 147.1 MM

With ROE of 12.53%, it has a fair valuation with a 1.54 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 -65.33%, its profits have risen by 16%

Below par performance in long term as well as near term

Along with generating -65.33% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Arealink Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Arealink Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arealink Co., Ltd.

-65.33%

-0.77

61.99%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.20%

EBIT Growth (5y)

13.49%

EBIT to Interest (avg)

25.46

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

29.30%

Dividend Payout Ratio

35.66%

Pledged Shares

Institutional Holding

ROCE (avg)

42.45%

ROE (avg)

13.53%

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

1.54

EV to EBIT

5.50

EV to EBITDA

4.13

EV to Capital Employed

2.15

EV to Sales

1.14

PEG Ratio

Dividend Yield

ROCE (Latest)

39.08%

ROE (Latest)

12.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

10What is working for the Company

ROCE(HY)

Highest at 13.5%

CASH AND EQV(HY)

Highest at JPY 33,414.31 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 135.32

NET SALES(Q)

Highest at JPY 9,193.96 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,894.71 MM

NET PROFIT(Q)

Highest at JPY 1,309.64 MM

EPS(Q)

Highest at JPY 26.62

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 31.29 %

INTEREST(Q)

Highest at JPY 147.1 MM

Here's what is working for Arealink Co., Ltd.

Net Sales

At JPY 9,193.96 MM has Grown at 40.47%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 9,193.96 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 1,894.71 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,309.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 26.62

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 33,414.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 135.32

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 529.99 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 Arealink Co., Ltd.

Interest

At JPY 147.1 MM has Grown at 16.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 147.1 MM

in the last five periods and Increased by 16.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 31.29 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio