ARIAKE JAPAN Co., Ltd. (2815) 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

Fuji Oil Holdings, Inc.

NIPPN Corp.

Kagome Co., Ltd.

Toyo Suisan Kaisha, Ltd.

Yamazaki Baking Co., Ltd.

Morinaga & Co., Ltd.

ARIAKE JAPAN Co., Ltd.

Meiji Holdings Co., Ltd.

Nissin Foods Holdings Co., Ltd.

CALBEE, Inc.

House Foods Group, Inc.

Why is ARIAKE JAPAN Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 4.56% and Operating profit at -1.17% over the last 5 years

Flat results in Dec 25

INTEREST(HY) At JPY 0.7 MM has Grown at 23,266.67%
INTEREST COVERAGE RATIO(Q) Lowest at 605,721.26
CASH AND EQV(HY) Lowest at JPY 99,025.6 MM

With ROE of 6.40%, it has a very attractive valuation with a 1.68 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 -10.30%, its profits have fallen by -1.7%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.30% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ARIAKE JAPAN Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is ARIAKE JAPAN Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ARIAKE JAPAN Co., Ltd.

-100.0%

0.43

26.16%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.56%

EBIT Growth (5y)

-1.17%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.51

Tax Ratio

31.19%

Dividend Payout Ratio

50.45%

Pledged Shares

Institutional Holding

ROCE (avg)

19.48%

ROE (avg)

6.86%

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

1.68

EV to EBIT

13.88

EV to EBITDA

11.63

EV to Capital Employed

2.26

EV to Sales

2.36

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

16.31%

ROE (Latest)

6.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 3.82 times

RAW MATERIAL COST(Y)

Fallen by 0.29% (YoY

NET SALES(Q)

Highest at JPY 18,652.56 MM

OPERATING PROFIT(Q)

Highest at JPY 4,246.11 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.76 %

PRE-TAX PROFIT(Q)

Highest at JPY 4,320.04 MM

-13What is not working for the Company

INTEREST(HY)

At JPY 0.7 MM has Grown at 23,266.67%

INTEREST COVERAGE RATIO(Q)

Lowest at 605,721.26

CASH AND EQV(HY)

Lowest at JPY 99,025.6 MM

DEBT-EQUITY RATIO (HY)

Highest at -37.67 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.99 times

Here's what is working for ARIAKE JAPAN Co., Ltd.

Inventory Turnover Ratio

Highest at 3.82 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 18,652.56 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 4,246.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 22.76 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 4,320.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by 0.29% (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 ARIAKE JAPAN Co., Ltd.

Interest

At JPY 0.7 MM has Grown at 23,266.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 605,721.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Cash and Eqv

Lowest at JPY 99,025.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -37.67 %

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

Debtors Turnover Ratio

Lowest at 3.99 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio