ScoreWhy is AZEARTH Corp. ?
1
Poor Management Efficiency with a low ROE of 5.08%
- The company has been able to generate a Return on Equity (avg) of 5.08% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a -4.52% CAGR growth in Net Sales over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 5.08% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -4.52% over the last 5 years
4
Positive results in Jul 26
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- NET SALES(HY) At JPY 4,620.75 MM has Grown at 19.95%
- NET PROFIT(HY) Higher at JPY 101.39 MM
5
With ROE of 0.91%, it has a very attractive valuation with a 0.60 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 4.67%, its profits have fallen by -67.9%
6
Underperformed the market in the last 1 year
- The stock has generated a return of 4.67% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.58%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to AZEARTH Corp. should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is AZEARTH Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
AZEARTH Corp.
3.55%
0.40
16.75%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-4.52%
EBIT Growth (5y)
-33.10%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.42
Sales to Capital Employed (avg)
1.20
Tax Ratio
29.72%
Dividend Payout Ratio
65.77%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.87%
ROE (avg)
5.08%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
65
Industry P/E
Price to Book Value
0.60
EV to EBIT
18.29
EV to EBITDA
7.86
EV to Capital Employed
0.39
EV to Sales
0.22
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.12%
ROE (Latest)
0.91%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
NET SALES(HY)
At JPY 4,620.75 MM has Grown at 19.95%
NET PROFIT(HY)
Higher at JPY 101.39 MM
RAW MATERIAL COST(Y)
Fallen by -3.06% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.88 times
DEBTORS TURNOVER RATIO(HY)
Highest at 4.74 times
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for AZEARTH Corp.
Net Profit
At JPY 101.39 MM has Grown at 622.33%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
At JPY 4,620.75 MM has Grown at 19.95%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
Higher at JPY 101.39 MM
than preceding 12 month period ended Jul 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 3.88 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 4.74 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -3.06% (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
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