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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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COSMOS Pharmaceutical Corp.

Welcia Holdings Co., Ltd.

Cawachi Ltd.

Ain Holdings, Inc.

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 Jun 25

DEBTORS TURNOVER RATIO(HY) Lowest at 18.95%
INTEREST(Q) At JPY 18 MM has Grown at 63.64%
INTEREST COVERAGE RATIO(Q) Lowest at 12,722.22

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 13.10%, 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 13.10% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

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.

12.2%

0.14

15.87%

Japan Nikkei 225

28.54%

1.14

25.81%

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

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

3What is working for the Company

ROCE(HY)

Highest at 4.23%

RAW MATERIAL COST(Y)

Fallen by 1.19% (YoY

-19What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 18.95%

INTEREST(Q)

At JPY 18 MM has Grown at 63.64%

INTEREST COVERAGE RATIO(Q)

Lowest at 12,722.22

OPERATING PROFIT(Q)

Lowest at JPY 2,290 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.22 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,611 MM

NET PROFIT(Q)

Lowest at JPY 1,045 MM

Here's what is working for Cawachi Ltd.

Raw Material Cost

Fallen by 1.19% (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 18 MM has Grown at 63.64%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 12,722.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 18.95% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at JPY 18 MM

in the last five periods and Increased by 63.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 2,290 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,611 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 1,045 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)