CANDEAL Co., Ltd. (1446) 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

e'grand Co., Ltd.

AVANTIA Co., Ltd.

Agratio urban design, Inc.

Sanyo Homes Corp.

EPCO Co., Ltd.

CANDEAL Co., Ltd.

The Global Ltd.

Japan Living Warranty, Inc.

First-corporation Inc.

REVOLUTION CO., LTD. (Yamaguchi)

Tsuchiya Holdings Co., Ltd.

Why is CANDEAL Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 22.13

Poor long term growth as Net Sales has grown by an annual rate of 3.15% and Operating profit at 2.26% over the last 5 years

With a growth in Net Profit of 33.73%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 8.46%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -1.66% (YoY)

With ROCE of 17.32%, it has a very expensive valuation with a 2.32 Enterprise value to Capital Employed

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 -8.22%, its profits have risen by 38.7% ; the PEG ratio of the company is 0.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.22% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CANDEAL Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is CANDEAL Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

CANDEAL Co., Ltd.

-8.22%

-1.23

11.86%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.15%

EBIT Growth (5y)

2.26%

EBIT to Interest (avg)

22.13

Debt to EBITDA (avg)

0.58

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

3.15

Tax Ratio

59.78%

Dividend Payout Ratio

37.68%

Pledged Shares

Institutional Holding

ROCE (avg)

11.03%

ROE (avg)

4.88%

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

2.14

EV to EBIT

13.38

EV to EBITDA

8.47

EV to Capital Employed

2.32

EV to Sales

0.42

PEG Ratio

0.76

Dividend Yield

ROCE (Latest)

17.32%

ROE (Latest)

7.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

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

16What is working for the Company

ROCE(HY)

Highest at 8.46%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -1.66% (YoY

NET SALES(Q)

Highest at JPY 4,172.73 MM

OPERATING PROFIT(Q)

Highest at JPY 387.55 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.29 %

PRE-TAX PROFIT(Q)

Highest at JPY 334.27 MM

NET PROFIT(Q)

Highest at JPY 185.19 MM

EPS(Q)

Highest at JPY 19.83

-8What is not working for the Company

INTEREST(Q)

At JPY 4.51 MM has Grown at 11.16%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.24 times

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

Net Sales

Highest at JPY 4,172.73 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 387.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.29 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 334.27 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 185.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 19.83

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -1.66% (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 CANDEAL Co., Ltd.

Interest

At JPY 4.51 MM has Grown at 11.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 6.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income