Belluna Co., Ltd. (9997) 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

Valuence Holdings, Inc.

ZOZO, Inc.

USS Co., Ltd.

Aucnet, Inc.

Mercari, Inc.

Kitanotatsujin Corp.

Rakuten Group, Inc.

Belluna Co., Ltd.

Kakuyasu Group Co., Ltd.

Oisix ra daichi, Inc.

ASKUL Corp.

Why is Belluna Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 2.89% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 2.89% of over the last 5 years

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,184.32
DEBT-EQUITY RATIO (HY) Highest at 75.71 %
INTEREST(Q) Highest at JPY 287 MM

With ROCE of 5.08%, it has a very attractive valuation with a 0.76 Enterprise value to Capital Employed

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 9.53%, its profits have risen by 37.9% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 9.53% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Belluna Co., Ltd. should be less than 10%
Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

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

Is Belluna Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Belluna Co., Ltd.

-100.0%

1.05

26.63%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.22%

EBIT Growth (5y)

2.89%

EBIT to Interest (avg)

40.50

Debt to EBITDA (avg)

4.05

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

0.81

Tax Ratio

33.16%

Dividend Payout Ratio

31.78%

Pledged Shares

Institutional Holding

ROCE (avg)

6.66%

ROE (avg)

7.36%

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

0.61

EV to EBIT

15.04

EV to EBITDA

9.81

EV to Capital Employed

0.76

EV to Sales

0.85

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

5.08%

ROE (Latest)

6.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

6What is working for the Company

ROCE(HY)

Highest at 6.18%

RAW MATERIAL COST(Y)

Fallen by -2.1% (YoY

NET PROFIT(9M)

Higher at JPY 7,273.97 MM

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,184.32

DEBT-EQUITY RATIO (HY)

Highest at 75.71 %

INTEREST(Q)

Highest at JPY 287 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 1,329 MM

NET PROFIT(Q)

Lowest at JPY 782.02 MM

EPS(Q)

Lowest at JPY 7.68

Here's what is working for Belluna Co., Ltd.

Raw Material Cost

Fallen by -2.1% (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 1,807 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 Belluna Co., Ltd.

Interest

At JPY 287 MM has Grown at 10.38%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,184.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 287 MM

in the last five periods and Increased by 10.38% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 1,329 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 782.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 7.68

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 75.71 %

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