Why is Beauty Garage, Inc. ?
1
Strong Long Term Fundamental Strength with a 8.87% CAGR growth in Operating Profits
- Company has very low debt and has enough cash to service the debt requirements
- The company has been able to generate a Return on Capital Employed (avg) of 33.47% signifying high profitability per unit of total capital (equity and debt)
2
The company has declared Negative results for the last 10 consecutive quarters
- INTEREST(HY) At JPY 21.14 MM has Grown at 105.49%
- DEBTORS TURNOVER RATIO(HY) Lowest at 10.1 times
3
With ROE of 12.58%, it has a expensive valuation with a 2.21 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 9.27%, its profits have risen by 1% ; the PEG ratio of the company is 17.4
4
Underperformed the market in the last 1 year
- The stock has generated a return of 9.27% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.58%
How much should you hold?
- Overall Portfolio exposure to Beauty Garage, Inc. 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 Beauty Garage, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Beauty Garage, Inc.
9.27%
-0.61
33.22%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
15.99%
EBIT Growth (5y)
8.87%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.32
Sales to Capital Employed (avg)
3.47
Tax Ratio
31.61%
Dividend Payout Ratio
18.55%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
27.01%
ROE (avg)
14.75%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
2.21
EV to EBIT
11.89
EV to EBITDA
9.43
EV to Capital Employed
2.24
EV to Sales
0.47
PEG Ratio
17.40
Dividend Yield
NA
ROCE (Latest)
18.85%
ROE (Latest)
12.58%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -4.16% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 7.94 times
PRE-TAX PROFIT(Q)
At JPY 451.14 MM has Grown at 85.89%
NET PROFIT(Q)
At JPY 282.33 MM has Grown at 74.03%
-10What is not working for the Company
INTEREST(HY)
At JPY 21.14 MM has Grown at 105.49%
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.1 times
Here's what is working for Beauty Garage, Inc.
Pre-Tax Profit
At JPY 451.14 MM has Grown at 85.89%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 282.33 MM has Grown at 74.03%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 7.94 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -4.16% (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
Here's what is not working for Beauty Garage, Inc.
Interest
At JPY 21.14 MM has Grown at 105.49%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 10.1 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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