Carchs Holdings Co., Ltd. (7602) 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

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Carchs Holdings Co., Ltd.

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Encho Co., Ltd.

Shinwa Wise Holdings Co., Ltd.

Why is Carchs Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROE of 1.73%

The company has been able to generate a Return on Equity (avg) of 1.73% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.63% and Operating profit at -228.78% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 4.08 MM has Grown at 198.03%
PRE-TAX PROFIT(Q) At JPY -64.09 MM has Fallen at -1,932.67%
NET PROFIT(Q) At JPY -86.58 MM has Fallen at -152.3%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 46.90%, its profits have fallen by -251.9%

Real-Time Research Report

Verdict Report

How 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 Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Carchs Holdings Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Carchs Holdings Co., Ltd.

46.9%

0.34

72.12%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.63%

EBIT Growth (5y)

-228.78%

EBIT to Interest (avg)

28.70

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

3.75

Tax Ratio

26.93%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.44%

ROE (avg)

1.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.69

EV to EBIT

-10.81

EV to EBITDA

-26.91

EV to Capital Employed

0.60

EV to Sales

0.11

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.57%

ROE (Latest)

-3.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

6What is working for the Company

NET PROFIT(HY)

Higher at JPY -1.88 MM

RAW MATERIAL COST(Y)

Fallen by -3.98% (YoY

-21What is not working for the Company

INTEREST(HY)

At JPY 4.08 MM has Grown at 198.03%

PRE-TAX PROFIT(Q)

At JPY -64.09 MM has Fallen at -1,932.67%

NET PROFIT(Q)

At JPY -86.58 MM has Fallen at -152.3%

CASH AND EQV(HY)

Lowest at JPY 2,365.79 MM

DEBT-EQUITY RATIO (HY)

Highest at -5.38 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.12 times

Here's what is working for Carchs Holdings Co., Ltd.

Raw Material Cost

Fallen by -3.98% (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 Carchs Holdings Co., Ltd.

Interest

At JPY 4.08 MM has Grown at 198.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -64.09 MM has Fallen at -1,932.67%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -86.58 MM has Fallen at -152.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 2,365.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -5.38 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 6.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio