Benefit Japan Co., Ltd. (3934) 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

U-NEXT HOLDINGS Co., Ltd.

Benefit Japan Co., Ltd.

Fibergate, Inc.

Accrete, Inc.

AI CROSS, Inc.

IPS Inc. /Japan/

Techfirm Holdings, Inc.

SoftBank Group Corp.

JTOWER, Inc.

Kanda Tsushinki Co., Ltd.

Giga Prize Co., Ltd.

Why is Benefit Japan Co., Ltd. ?

High Management Efficiency with a high ROE of 12.92%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 1.65% of over the last 5 years

With a growth in Net Profit of 57.36%, the company declared Very Positive results in Dec 25

NET SALES(Q) Highest at JPY 4,884.36 MM
RAW MATERIAL COST(Y) Fallen by -1.51% (YoY)
CASH AND EQV(HY) Highest at JPY 7,460.05 MM

With ROE of 10.46%, it has a very attractive valuation with a 1.25 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 68.49%, its profits have risen by 13.2% ; the PEG ratio of the company is 0.9

Market Beating Performance

The stock has generated a return of 68.49% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 38.30%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Benefit Japan Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Benefit Japan Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Benefit Japan Co., Ltd.

-100.0%

1.52

43.30%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.60%

EBIT Growth (5y)

1.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.40

Tax Ratio

32.50%

Dividend Payout Ratio

30.46%

Pledged Shares

Institutional Holding

ROCE (avg)

20.68%

ROE (avg)

12.92%

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

1.25

EV to EBIT

6.31

EV to EBITDA

5.59

EV to Capital Employed

1.35

EV to Sales

0.60

PEG Ratio

0.94

Dividend Yield

ROCE (Latest)

21.47%

ROE (Latest)

10.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

18What is working for the Company

NET SALES(Q)

Highest at JPY 4,884.36 MM

RAW MATERIAL COST(Y)

Fallen by -1.51% (YoY

CASH AND EQV(HY)

Highest at JPY 7,460.05 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.3 times

OPERATING PROFIT(Q)

Highest at JPY 451.87 MM

PRE-TAX PROFIT(Q)

Highest at JPY 428.05 MM

NET PROFIT(Q)

Highest at JPY 281.25 MM

EPS(Q)

Highest at JPY 47.6

-13What is not working for the Company

INTEREST(Q)

Highest at JPY 2.86 MM

Here's what is working for Benefit Japan Co., Ltd.

Net Sales

Highest at JPY 4,884.36 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 4,884.36 MM has Grown at 35.06%

over average net sales of the previous four periods of JPY 3,616.44 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 451.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 428.05 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 281.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 47.6

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 7,460.05 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.3 times

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 -1.51% (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 Benefit Japan Co., Ltd.

Interest

At JPY 2.86 MM has Grown at 21.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 2.86 MM

in the last five periods and Increased by 21.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)