AZEARTH Corp. (3161) 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

Narumiya International Co., Ltd.

Cross Plus Inc.

Tabio Corp.

KURAUDIA HOLDINGS Co., Ltd.

AZEARTH Corp.

KIMURATAN Corp.

Atsugi Co., Ltd.

Yamato International, Inc.

Tsukamoto Corp Co., Ltd.

Daidoh Ltd.

Charle Co., Ltd.

Why is AZEARTH Corp. ?

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 -3.90% over the last 5 years

The company declared positive results in Jan'25 after negative results in Oct'24

RAW MATERIAL COST(Y) Fallen by 1.61% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 4.17%

With ROE of 2.83%, it has a very attractive valuation with a 0.58 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 -2.73%, its profits have fallen by -30.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.73% 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 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.

-2.73%

0.10

16.56%

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)

-3.90%

EBIT Growth (5y)

-10.04%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.25

Tax Ratio

28.12%

Dividend Payout Ratio

65.77%

Pledged Shares

Institutional Holding

ROCE (avg)

11.45%

ROE (avg)

5.51%

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

0.58

EV to EBIT

6.35

EV to EBITDA

4.66

EV to Capital Employed

0.37

EV to Sales

0.21

PEG Ratio

Dividend Yield

ROCE (Latest)

5.82%

ROE (Latest)

2.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.61% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.17%

-12What is not working for the Company

NET PROFIT(Q)

At JPY -11.01 MM has Fallen at -123.03%

INTEREST COVERAGE RATIO(Q)

Lowest at 10,433.33

OPERATING PROFIT(Q)

Lowest at JPY 14.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.7 %

PRE-TAX PROFIT(Q)

Lowest at JPY -11.13 MM

Here's what is working for AZEARTH Corp.

Debtors Turnover Ratio

Highest at 4.17%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.61% (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 27.54 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 AZEARTH Corp.

Pre-Tax Profit

At JPY -11.13 MM has Fallen at -114.81%

over average net sales of the previous four periods of JPY 75.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -11.01 MM has Fallen at -123.03%

over average net sales of the previous four periods of JPY 47.8 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 10,433.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 14.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -11.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -11.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)