Asax Co., Ltd. (8772) 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

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Asax Co., Ltd.

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Japan Investment Adviser Co., Ltd.

SBI ARUHI Corp.

Why is Asax Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.67%

Poor long term growth as Net Sales has grown by an annual rate of 10.10% and Operating profit at 12.22%

Poor long term growth as Net Sales has grown by an annual rate of 10.10% and Operating profit at 12.22%

Flat results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 9,322.86
DEBT-EQUITY RATIO (HY) Highest at 127.94 %
INTEREST(Q) Highest at JPY 18.54 MM

With ROE of 6.56%, it has a attractive valuation with a 0.51 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 17.20%, its profits have risen by 3% ; the PEG ratio of the company is 2.6

Underperformed the market in the last 1 year

The stock has generated a return of 17.20% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 58.07%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Asax Co., Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is Asax Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Asax Co., Ltd.

16.02%

0.16

25.75%

Japan Nikkei 225

57.85%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.10%

EBIT Growth (5y)

12.22%

EBIT to Interest (avg)

12.37

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

35.09%

Dividend Payout Ratio

18.37%

Pledged Shares

Institutional Holding

ROCE (avg)

13.11%

ROE (avg)

6.67%

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

0.51

EV to EBIT

3.28

EV to EBITDA

3.23

EV to Capital Employed

0.43

EV to Sales

2.53

PEG Ratio

2.62

Dividend Yield

ROCE (Latest)

13.08%

ROE (Latest)

6.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

12What is working for the Company

ROCE(HY)

Highest at 8.4%

DEBTORS TURNOVER RATIO(HY)

Highest at 0.09 times

NET SALES(Q)

Highest at JPY 2,514.19 MM

CASH AND EQV(HY)

Highest at JPY 16,429.69 MM

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 9,322.86

DEBT-EQUITY RATIO (HY)

Highest at 127.94 %

INTEREST(Q)

Highest at JPY 18.54 MM

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

Net Sales

Highest at JPY 2,514.19 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 0.09 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At JPY 2,514.19 MM has Grown at 14.55%

over average net sales of the previous four periods of JPY 2,194.84 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 16,429.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Asax Co., Ltd.

Interest

At JPY 18.54 MM has Grown at 28.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 9,322.86

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 18.54 MM

in the last five periods and Increased by 28.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 127.94 %

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