Buffalo Co., Ltd. (3352) 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

I.A. Group Corp.

Buffalo Co., Ltd.

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Shinwa Wise Holdings Co., Ltd.

VISIONARYHOLDINGS CO., LTD.

Why is Buffalo Co., Ltd. ?

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 10.84% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 9.65 MM has Grown at 39.68%
INTEREST COVERAGE RATIO(Q) Lowest at 2,806.73
OPERATING PROFIT(Q) Lowest at JPY 135.12 MM

With ROE of 6.76%, it has a very attractive valuation with a 0.66 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 22.36%, its profits have risen by 25.7% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 22.36% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Buffalo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Buffalo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Buffalo Co., Ltd.

22.36%

0.85

28.65%

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)

7.53%

EBIT Growth (5y)

10.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

1.82

Tax Ratio

36.84%

Dividend Payout Ratio

40.89%

Pledged Shares

Institutional Holding

ROCE (avg)

13.66%

ROE (avg)

5.66%

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

0.66

EV to EBIT

2.76

EV to EBITDA

2.03

EV to Capital Employed

0.44

EV to Sales

0.13

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

16.02%

ROE (Latest)

6.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

6What is working for the Company

ROCE(HY)

Highest at 6.97%

RAW MATERIAL COST(Y)

Fallen by -1.61% (YoY

CASH AND EQV(HY)

Highest at JPY 7,106.08 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.46 times

DIVIDEND PER SHARE(HY)

Highest at JPY 18.48

-14What is not working for the Company

INTEREST(HY)

At JPY 9.65 MM has Grown at 39.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,806.73

OPERATING PROFIT(Q)

Lowest at JPY 135.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.28 %

PRE-TAX PROFIT(Q)

Lowest at JPY 81.21 MM

EPS(Q)

Lowest at JPY 29.74

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

Cash and Eqv

Highest at JPY 7,106.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 5.46 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 18.48

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -1.61% (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 Buffalo Co., Ltd.

Interest

At JPY 9.65 MM has Grown at 39.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,806.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 135.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 81.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

EPS

Lowest at JPY 29.74

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.17 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income