ScoreWhy is Cawachi Ltd. ?
1
Poor Management Efficiency with a low ROE of 5.44%
- The company has been able to generate a Return on Equity (avg) of 5.44% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a % CAGR growth in Net Sales over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 5.44% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of % over the last 5 years
4
The company has declared Negative results for the last 7 consecutive quarters
- NET PROFIT(HY) At JPY -1,584.29 MM has Grown at -151.4%
- ROCE(HY) Lowest at 2.85%
- INTEREST COVERAGE RATIO(Q) Lowest at 8,058.06
5
With ROE of 4.69%, it has a very attractive valuation with a 0.74 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 29.81%, its profits have fallen by -13.3%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow 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 Cawachi Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cawachi Ltd.
27.44%
1.39
19.59%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.00%
EBIT Growth (5y)
-8.50%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
2.20
Tax Ratio
42.55%
Dividend Payout Ratio
69.79%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.84%
ROE (avg)
5.44%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
0.74
EV to EBIT
9.56
EV to EBITDA
5.74
EV to Capital Employed
0.68
EV to Sales
0.23
PEG Ratio
NA
Dividend Yield
0.04%
ROCE (Latest)
7.16%
ROE (Latest)
4.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -24.48 %
RAW MATERIAL COST(Y)
Fallen by 0.09% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 6.34 times
-23What is not working for the Company
NET PROFIT(HY)
At JPY -1,584.29 MM has Grown at -151.4%
ROCE(HY)
Lowest at 2.85%
INTEREST COVERAGE RATIO(Q)
Lowest at 8,058.06
INTEREST(Q)
Highest at JPY 31 MM
Here's what is working for Cawachi Ltd.
Debt-Equity Ratio
Lowest at -24.48 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 6.34 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.09% (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 Cawachi Ltd.
Net Profit
At JPY -1,584.29 MM has Grown at -151.4%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 31 MM has Grown at 93.75%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 8,058.06
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 31 MM
in the last five periods and Increased by 93.75% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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