Besterra Co., Ltd (1433) 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

Tanaken KK

Meiho Facility Works Ltd.

Semba Corp.

Besterra Co., Ltd

Nankai Tatsumura Construction Co., Ltd.

Wesco Holdings Inc. (Japan)

Japan Warranty Support Co., Ltd.

Sumiken Mitsui Road Co., Ltd.

KFC Ltd.

Kawagishi Bridge Works Co., Ltd.

CEL Corp.

Why is Besterra Co., Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.21 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.21 times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.07%

With a growth in Operating Profit of 188.52%, the company declared Very Positive results in Oct 25

RAW MATERIAL COST(Y) Fallen by -78.22% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -5.38 %
NET SALES(Q) Highest at JPY 2,967.3 MM

With ROE of 8.68%, it has a very attractive valuation with a 2.07 Price to Book Value

Over the past year, while the stock has generated a return of 20.16%, its profits have risen by 109.4% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 20.16% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.30%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Besterra Co., Ltd should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

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

Is Besterra Co., Ltd for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Besterra Co., Ltd

20.16%

0.43

34.69%

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)

25.97%

EBIT Growth (5y)

48.94%

EBIT to Interest (avg)

20.26

Debt to EBITDA (avg)

3.34

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

1.26

Tax Ratio

34.66%

Dividend Payout Ratio

43.25%

Pledged Shares

Institutional Holding

ROCE (avg)

6.13%

ROE (avg)

6.64%

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

2.07

EV to EBIT

32.71

EV to EBITDA

25.21

EV to Capital Employed

1.74

EV to Sales

1.12

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

5.33%

ROE (Latest)

8.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -78.22% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -5.38 %

NET SALES(Q)

Highest at JPY 2,967.3 MM

OPERATING PROFIT(Q)

Highest at JPY 328.09 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.06 %

PRE-TAX PROFIT(Q)

Highest at JPY 316.25 MM

NET PROFIT(Q)

Highest at JPY 215.7 MM

EPS(Q)

Highest at JPY 23.66

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Net Sales

Highest at JPY 2,967.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 2,967.3 MM has Grown at 16.02%

over average net sales of the previous four periods of JPY 2,557.63 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 328.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 11.06 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 316.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 316.25 MM has Grown at 67.31%

over average net sales of the previous four periods of JPY 189.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 215.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 215.7 MM has Grown at 65.64%

over average net sales of the previous four periods of JPY 130.22 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 23.66

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at -5.38 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -78.22% (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