Beauty Garage, Inc. (3180) 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

SATO SHO-JI CORP.

Fuji Corp. (Miyagi)

Suzuden Corp.

Shinsho Corp.

Kanaden Corp.

Sanyo Trading Co., Ltd.

KPP Group Holdings Co., Ltd.

Beauty Garage, Inc.

Tenpos Holdings Co., Ltd.

Maruzen CHI Holdings Co., Ltd.

Onoken Co., Ltd.

Why is Beauty Garage, Inc. ?

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)

The company has declared Negative results for the last 8 consecutive quarters

ROCE(HY) Lowest at 12.34%
RAW MATERIAL COST(Y) Grown by 5.59% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -2.34 %

With ROE of 12.58%, it has a fair valuation with a 2.30 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 -12.24%, its profits have risen by 1% ; the PEG ratio of the company is 18.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.24% 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 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.

-12.24%

-0.97

34.36%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

3.47

Tax Ratio

32.72%

Dividend Payout Ratio

18.55%

Pledged Shares

Institutional Holding

ROCE (avg)

33.47%

ROE (avg)

14.75%

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

2.30

EV to EBIT

12.39

EV to EBITDA

9.83

EV to Capital Employed

2.34

EV to Sales

0.49

PEG Ratio

18.12

Dividend Yield

ROCE (Latest)

18.85%

ROE (Latest)

12.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

CASH AND EQV(HY)

Highest at JPY 7,225.45 MM

NET SALES(Q)

Highest at JPY 9,431.62 MM

-16What is not working for the Company

ROCE(HY)

Lowest at 12.34%

RAW MATERIAL COST(Y)

Grown by 5.59% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -2.34 %

INTEREST(Q)

Highest at JPY 7.63 MM

Here's what is working for Beauty Garage, Inc.

Net Sales

Highest at JPY 9,431.62 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 7,225.45 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 Beauty Garage, Inc.

Interest

At JPY 7.63 MM has Grown at 41.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 7.63 MM

in the last five periods and Increased by 41.21% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -2.34 %

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

Raw Material Cost

Grown by 5.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales