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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

GA technologies Co., Ltd.

ESLEAD CORP.

CRE, Inc. (Japan)

Arealink Co., Ltd.

Sanei Architecture Planning Co., Ltd.

Hoosiers Holdings Co., Ltd.

JSB Co., Ltd.

Loadstar Capital KK

Mirarth Holdings, Inc.

Miyakoshi Holdings, Inc.

SRE Holdings Corp.

Why is Arealink Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.53%

Healthy long term growth as Operating profit has grown by an annual rate of 14.51%

The company has declared Negative results for the last 4 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 2,246.4
INTEREST(Q) Highest at JPY 83.71 MM

With ROE of 12.75%, it has a very attractive valuation with a 2.64 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 -6.71%, its profits have risen by 13%

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 28.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.71% returns

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.

-6.71%

-0.64

62.26%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.80%

EBIT Growth (5y)

14.51%

EBIT to Interest (avg)

89.81

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

31.10%

Dividend Payout Ratio

35.29%

Pledged Shares

Institutional Holding

ROCE (avg)

16.31%

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

2.64

EV to EBIT

14.81

EV to EBITDA

9.06

EV to Capital Employed

2.60

EV to Sales

2.35

PEG Ratio

Dividend Yield

ROCE (Latest)

17.58%

ROE (Latest)

12.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

7What is working for the Company

ROCE(HY)

Highest at 13.31%

DIVIDEND PAYOUT RATIO(Y)

Highest at 65.96%

RAW MATERIAL COST(Y)

Fallen by -7.49% (YoY

CASH AND EQV(HY)

Highest at JPY 31,986.71 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.07%

DIVIDEND PER SHARE(HY)

Highest at JPY 164.6

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,246.4

INTEREST(Q)

Highest at JPY 83.71 MM

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

Cash and Eqv

Highest at JPY 31,986.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.07%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 164.6

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 65.96%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.49% (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 Arealink Co., Ltd.

Interest

At JPY 83.71 MM has Grown at 16.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,246.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 83.71 MM

in the last five periods and Increased by 16.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)