Asante, Inc. (6073) 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

Entrust, Inc. (Japan)

FALCO HOLDINGS Co., Ltd.

Gakkyusha Co., Ltd.

Tanabe Consulting Group Co., Ltd.

Direct Marketing MiX Inc.

VINX Corp.

Payroll, Inc. (Japan)

Paraca, Inc.

NAC Co., Ltd.

Asante, Inc.

Microwave Chemical Co., Ltd.

Why is Asante, Inc. ?

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 -0.57% and Operating profit at -11.35% over the last 5 years

Negative results in Jun 25

NET PROFIT(9M) At JPY 338.63 MM has Grown at -26.55%
ROCE(HY) Lowest at 4.8%
INTEREST(Q) At JPY 1.87 MM has Grown at 10.99%

With ROE of 7.36%, it has a very attractive valuation with a 2.05 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 -5.80%, its profits have risen by 26.4% ; the PEG ratio of the company is 1.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.80% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Asante, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Asante, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Asante, Inc.

-5.8%

708.79

11.84%

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)

-0.57%

EBIT Growth (5y)

-11.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.49

Sales to Capital Employed (avg)

1.07

Tax Ratio

39.34%

Dividend Payout Ratio

93.91%

Pledged Shares

Institutional Holding

ROCE (avg)

24.03%

ROE (avg)

7.20%

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

2.05

EV to EBIT

12.42

EV to EBITDA

10.89

EV to Capital Employed

3.05

EV to Sales

1.09

PEG Ratio

1.06

Dividend Yield

ROCE (Latest)

24.55%

ROE (Latest)

7.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

3What is working for the Company

NET SALES(Q)

At JPY 4,229.81 MM has Grown at 20.64%

PRE-TAX PROFIT(Q)

At JPY 465.34 MM has Grown at 59.99%

NET PROFIT(Q)

At JPY 332.17 MM has Grown at 85.23%

-19What is not working for the Company

NET PROFIT(9M)

At JPY 338.63 MM has Grown at -26.55%

ROCE(HY)

Lowest at 4.8%

INTEREST(Q)

At JPY 1.87 MM has Grown at 10.99%

DEBT-EQUITY RATIO (HY)

Highest at -48.54 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.75%

Here's what is working for Asante, Inc.

Net Sales

At JPY 4,229.81 MM has Grown at 20.64%

over average net sales of the previous four periods of JPY 3,506.02 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 465.34 MM has Grown at 59.99%

over average net sales of the previous four periods of JPY 290.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 332.17 MM has Grown at 85.23%

over average net sales of the previous four periods of JPY 179.33 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Here's what is not working for Asante, Inc.

Interest

At JPY 1.87 MM has Grown at 10.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1.87 MM

in the last five periods and Increased by 10.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -48.54 %

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

Inventory Turnover Ratio

Lowest at 11.75%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio