Cawachi Ltd. (2664) 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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Genky DrugStores Co., Ltd.

Cawachi Ltd.

Why is Cawachi Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.09% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

INTEREST(HY) At JPY 34 MM has Grown at 61.9%
ROCE(HY) Lowest at 2.78%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

Underperformed the market in the last 1 year

The stock has generated a return of 26.45% 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 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.

26.45%

1.26

17.26%

Japan Nikkei 225

75.22%

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)

0.09%

EBIT Growth (5y)

-9.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

2.21

Tax Ratio

28.45%

Dividend Payout Ratio

36.58%

Pledged Shares

Institutional Holding

ROCE (avg)

8.84%

ROE (avg)

5.44%

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

0.64

EV to EBIT

7.42

EV to EBITDA

4.34

EV to Capital Employed

0.52

EV to Sales

0.16

PEG Ratio

2.77

Dividend Yield

0.05%

ROCE (Latest)

7.06%

ROE (Latest)

4.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.51% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 18.62

OPERATING PROFIT(Q)

Highest at JPY 3,355 MM

OPERATING PROFIT MARGIN(Q)

Highest at 4.83 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,431 MM

-26What is not working for the Company

INTEREST(HY)

At JPY 34 MM has Grown at 61.9%

ROCE(HY)

Lowest at 2.78%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.37 times

NET SALES(Q)

Lowest at JPY 69,506 MM

NET PROFIT(Q)

Lowest at JPY -2,686.29 MM

EPS(Q)

Lowest at JPY -11.87

Here's what is working for Cawachi Ltd.

Operating Profit

Highest at JPY 3,355 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 4.83 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,431 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Dividend per share

Highest at JPY 18.62

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.51% (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

Depreciation

Highest at JPY 1,213 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Cawachi Ltd.

Interest

At JPY 34 MM has Grown at 61.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY -2,686.29 MM has Fallen at -231.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 69,506 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Profit

Lowest at JPY -2,686.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -11.87

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 6.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at JPY 1.28 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income