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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Cawachi Ltd.

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Why is Cawachi Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 1.26% over the last 5 years

Negative results in Dec 25

INTEREST(HY) At JPY 36 MM has Grown at 111.76%
ROCE(HY) Lowest at 3.8%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.95 times

With ROE of 5.44%, it has a very attractive valuation with a 0.61 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 4.47%, its profits have risen by 11.2% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 4.47% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cawachi Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Cawachi Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cawachi Ltd.

4.47%

0.16

18.01%

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)

1.26%

EBIT Growth (5y)

5.78%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

2.22

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

0.61

EV to EBIT

6.64

EV to EBITDA

4.13

EV to Capital Employed

0.52

EV to Sales

0.17

PEG Ratio

1.00

Dividend Yield

0.02%

ROCE (Latest)

7.85%

ROE (Latest)

5.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.66% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -23.78 %

-13What is not working for the Company

INTEREST(HY)

At JPY 36 MM has Grown at 111.76%

ROCE(HY)

Lowest at 3.8%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.95 times

PRE-TAX PROFIT(Q)

Lowest at JPY 1,603 MM

NET PROFIT(Q)

Lowest at JPY 1,020.72 MM

Here's what is working for Cawachi Ltd.

Debt-Equity Ratio

Lowest at -23.78 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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 Cawachi Ltd.

Interest

At JPY 36 MM has Grown at 111.76%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 1,603 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,020.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 5.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio