ScoreComparison
Why is Business Brain Showa-ota, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.43%
- Healthy long term growth as Net Sales has grown by an annual rate of 7.46% and Operating profit at 4.08%
- Company has very low debt and has enough cash to service the debt requirements
- INTEREST(Q) At JPY 13.74 MM has Grown at 39.03%
- RAW MATERIAL COST(Y) Grown by 5.53% (YoY)
- OPERATING PROFIT(Q) Lowest at JPY 706.51 MM
2
With ROE of 8.88%, it has a very attractive valuation with a 1.16 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 11.68%, its profits have fallen by -4.6% ; the PEG ratio of the company is 2.9
- At the current price, the company has a high dividend yield of 0
3
Underperformed the market in the last 1 year
- The stock has generated a return of 11.68% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.52%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Business Brain Showa-ota, Inc. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Business Brain Showa-ota, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Business Brain Showa-ota, Inc.
11.68%
-0.65
74.50%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.46%
EBIT Growth (5y)
4.08%
EBIT to Interest (avg)
66.85
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.31
Sales to Capital Employed (avg)
1.26
Tax Ratio
31.98%
Dividend Payout Ratio
48.90%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
29.46%
ROE (avg)
20.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.16
EV to EBIT
8.23
EV to EBITDA
5.37
EV to Capital Employed
1.24
EV to Sales
0.60
PEG Ratio
2.89
Dividend Yield
NA
ROCE (Latest)
15.05%
ROE (Latest)
8.88%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
CASH AND EQV(HY)
Highest at JPY 23,126.76 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 202.01 times
-13What is not working for the Company
INTEREST(Q)
At JPY 13.74 MM has Grown at 39.03%
RAW MATERIAL COST(Y)
Grown by 5.53% (YoY
OPERATING PROFIT(Q)
Lowest at JPY 706.51 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 6.72 %
PRE-TAX PROFIT(Q)
Lowest at JPY 348.49 MM
NET PROFIT(Q)
Lowest at JPY 213.65 MM
EPS(Q)
Lowest at JPY 6.56
Here's what is working for Business Brain Showa-ota, Inc.
Cash and Eqv
Highest at JPY 23,126.76 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 202.01 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at JPY 431.79 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Business Brain Showa-ota, Inc.
Pre-Tax Profit
At JPY 348.49 MM has Fallen at -60.98%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Interest
At JPY 13.74 MM has Grown at 39.03%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 213.65 MM has Fallen at -61.57%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Operating Profit
Lowest at JPY 706.51 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 6.72 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 348.49 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 213.65 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 6.56
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Raw Material Cost
Grown by 5.53% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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