Autobacs Seven Co., Ltd. (9832) 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

Inabata & Co., Ltd.

Inaba Denkisangyo Co., Ltd.

Nagase & Co., Ltd.

Mitani Corp.

Taikisha Ltd.

Hanwa Co., Ltd.

Sangetsu Corp.

Autobacs Seven Co., Ltd.

ARE Holdings, Inc.

Trusco Nakayama Corp.

Daiichikosho Co., Ltd.

Why is Autobacs Seven 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 2.42% over the last 5 years

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 4,631.25
DEBT-EQUITY RATIO (HY) Highest at 2.61 %
INTEREST(Q) Highest at JPY 96 MM

With ROE of 5.88%, it has a very attractive valuation with a 0.90 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 11.50%, its profits have fallen by -4.7%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 11.50% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Autobacs Seven Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Autobacs Seven Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Autobacs Seven Co., Ltd.

11.5%

0.28

13.81%

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)

2.42%

EBIT Growth (5y)

9.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.65

Tax Ratio

37.09%

Dividend Payout Ratio

57.75%

Pledged Shares

Institutional Holding

ROCE (avg)

9.89%

ROE (avg)

5.90%

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

0.90

EV to EBIT

10.10

EV to EBITDA

6.75

EV to Capital Employed

0.90

EV to Sales

0.49

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

8.90%

ROE (Latest)

5.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

20What is working for the Company

ROCE(HY)

Highest at 7.28%

PRE-TAX PROFIT(Q)

At JPY 3,049 MM has Grown at 124.85%

NET PROFIT(Q)

At JPY 2,001 MM has Grown at 173.73%

RAW MATERIAL COST(Y)

Fallen by -4.63% (YoY

NET SALES(Q)

At JPY 64,223 MM has Grown at 18.91%

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,631.25

DEBT-EQUITY RATIO (HY)

Highest at 2.61 %

INTEREST(Q)

Highest at JPY 96 MM

Here's what is working for Autobacs Seven Co., Ltd.

Pre-Tax Profit

At JPY 3,049 MM has Grown at 124.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,001 MM has Grown at 173.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 64,223 MM has Grown at 18.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -4.63% (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

Depreciation

Highest at JPY 1,759 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 Autobacs Seven Co., Ltd.

Interest Coverage Ratio

Lowest at 4,631.25 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 96 MM has Grown at 31.51%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 96 MM

in the last five periods and Increased by 31.51% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 2.61 %

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