ScoreWhy is Besterra Co., Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.83 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.83 times
2
Poor long term growth as Operating profit has grown by an annual rate 24.15% of over the last 5 years
3
With a fall in Operating Profit of -8.11%, the company declared Very Negative results in Jul 26
- The company has declared negative results in Jul 26 after 3 consecutive negative quarters
- NET SALES(Q) At JPY 2,621.88 MM has Fallen at -11.74%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,525.25
- INVENTORY TURNOVER RATIO(HY) Lowest at 46.91 times
4
Underperformed the market in the last 1 year
- The stock has generated a return of 12.15% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.58%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Besterra Co., Ltd for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Besterra Co., Ltd
12.91%
0.51
31.98%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
23.71%
EBIT Growth (5y)
24.15%
EBIT to Interest (avg)
31.65
Debt to EBITDA (avg)
2.77
Net Debt to Equity (avg)
0.60
Sales to Capital Employed (avg)
1.45
Tax Ratio
27.58%
Dividend Payout Ratio
49.17%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.84%
ROE (avg)
7.54%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.99
EV to EBIT
10.01
EV to EBITDA
9.31
EV to Capital Employed
2.23
EV to Sales
0.81
PEG Ratio
0.33
Dividend Yield
NA
ROCE (Latest)
22.32%
ROE (Latest)
15.87%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -28.67 %
PRE-TAX PROFIT(Q)
Highest at JPY 511.62 MM
RAW MATERIAL COST(Y)
Fallen by -33.94% (YoY
CASH AND EQV(HY)
Highest at JPY 9,561.75 MM
-29What is not working for the Company
NET SALES(Q)
At JPY 2,621.88 MM has Fallen at -11.74%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,525.25
INVENTORY TURNOVER RATIO(HY)
Lowest at 46.91 times
INTEREST(Q)
Highest at JPY 15.56 MM
NET PROFIT(Q)
Lowest at JPY -7,147.11 MM
EPS(Q)
Lowest at JPY -18.12
Here's what is working for Besterra Co., Ltd
Pre-Tax Profit
Highest at JPY 511.62 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Debt-Equity Ratio
Lowest at -28.67 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Pre-Tax Profit
At JPY 511.62 MM has Grown at 74.6%
over average net sales of the previous four periods of JPY 293.02 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Cash and Eqv
Highest at JPY 9,561.75 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -33.94% (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 Besterra Co., Ltd
Net Sales
At JPY 2,621.88 MM has Fallen at -11.74%
over average net sales of the previous four periods of JPY 2,970.57 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Net Profit
At JPY -7,147.11 MM has Fallen at -3,461.68%
over average net sales of the previous four periods of JPY 212.61 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 15.56 MM has Grown at 1,159.06%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,525.25
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 15.56 MM
in the last five periods and Increased by 1,159.06% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
Lowest at JPY -7,147.11 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -18.12
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 46.91 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Non Operating Income
Highest at JPY 26.57 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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