Asakuma Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Leisure Services
  • ISIN: JP3109700009
  • TKS: 7678
JPY
3,720.00
-550 (-12.88%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Tokyo Kaikan Co., Ltd.
Hub Co., Ltd.
Hachi-Ban Co., Ltd.
Asakuma Co., Ltd.
Satoh & Co., Ltd.
ANRAKUTEI Co., Ltd.
RIDE ON EXPRESS HOLDINGS Co., Ltd.
Ten Allied Co., Ltd.
AP Holdings Co., Ltd.
Balnibarbi Co., Ltd.
KICHIRI HOLDINGS & Co., Ltd.

Why is Asakuma Co., Ltd. ?

1
Poor Management Efficiency with a low ROE of 8.47%
  • The company has been able to generate a Return on Equity (avg) of 8.47% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 26.67
  • Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 26.67
  • The company has been able to generate a Return on Equity (avg) of 8.47% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 10.71% over the last 5 years
4
Flat results in Jul 26
  • PRE-TAX PROFIT(Q) At JPY 73.46 MM has Fallen at -42.79%
  • NET PROFIT(Q) At JPY 40.36 MM has Fallen at -45.65%
  • RAW MATERIAL COST(Y) Grown by 5.13% (YoY)
5
With ROE of 8.61%, it has a very expensive valuation with a 8.92 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 84.96%, its profits have fallen by -56.2%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Asakuma Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Asakuma Co., Ltd.
-100.0%
0.26
61.21%
Japan Nikkei 225
43.58%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
10.71%
EBIT Growth (5y)
22.27%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.66
Sales to Capital Employed (avg)
2.78
Tax Ratio
42.32%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
23.77%
ROE (avg)
8.47%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
104
Industry P/E
Price to Book Value
8.92
EV to EBIT
56.14
EV to EBITDA
44.02
EV to Capital Employed
27.95
EV to Sales
2.67
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
49.78%
ROE (Latest)
8.61%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company
NET SALES(Q)

Highest at JPY 2,993.01 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 24.78 times

-11What is not working for the Company
PRE-TAX PROFIT(Q)

At JPY 73.46 MM has Fallen at -42.79%

NET PROFIT(Q)

At JPY 40.36 MM has Fallen at -45.65%

RAW MATERIAL COST(Y)

Grown by 5.13% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -56.59 %

OPERATING PROFIT MARGIN(Q)

Lowest at 3.86 %

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

Net Sales
Highest at JPY 2,993.01 MM and Grown
In each period in the last five periods
MOJO Watch
Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales
At JPY 2,993.01 MM has Grown at 12.74%
over average net sales of the previous four periods of JPY 2,654.81 MM
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio
Highest at 24.78 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation
Highest at JPY 44.33 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 Asakuma Co., Ltd.

Pre-Tax Profit
At JPY 73.46 MM has Fallen at -42.79%
over average net sales of the previous four periods of JPY 128.4 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 40.36 MM has Fallen at -45.65%
over average net sales of the previous four periods of JPY 74.25 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin
Lowest at 3.86 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio
Highest at -56.59 %
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

Raw Material Cost
Grown by 5.13% (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

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Asakuma Co., Ltd. (7678) Stock Recommendation | Score, Valuation, Technicals & Financial Trend