Charm Care Corp. (6062) 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

Saint-Care Holding Corp.

Charm Care Corp.

Care Twentyone Corp.

Recovery International Co.,Ltd.

Living Platform Ltd.

Hoshi Iryo-Sanki Co., Ltd.

Care Service Co., Ltd.

HYUGA PRIMARY CARE Co., Ltd.

CEDAR Co., Ltd.

Japan Hospice Holdings, Inc.

SUNWELS Co., Ltd.

Why is Charm Care Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.44%

Healthy long term growth as Net Sales has grown by an annual rate of 20.77% and Operating profit at 24.31%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 54.89

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

NET PROFIT(HY) At JPY 1,665 MM has Grown at -53.13%
NET SALES(HY) At JPY 26,622 MM has Grown at -8.96%
ROCE(HY) Lowest at 14.91%

With ROE of 23.85%, it has a very attractive valuation with a 2.07 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 -4.98%, its profits have risen by 13.8% ; the PEG ratio of the company is 0.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.98% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Charm Care Corp. should be less than 10%
Overall Portfolio exposure to Hospital should be less than 30%

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

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

Is Charm Care Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Charm Care Corp.

-5.57%

-0.62

33.43%

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)

20.77%

EBIT Growth (5y)

24.31%

EBIT to Interest (avg)

54.89

Debt to EBITDA (avg)

0.97

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

1.40

Tax Ratio

31.05%

Dividend Payout Ratio

37.83%

Pledged Shares

Institutional Holding

ROCE (avg)

18.81%

ROE (avg)

19.44%

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

2.07

EV to EBIT

8.18

EV to EBITDA

6.77

EV to Capital Employed

1.90

EV to Sales

0.91

PEG Ratio

0.63

Dividend Yield

ROCE (Latest)

23.24%

ROE (Latest)

23.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

DIVIDEND PER SHARE(HY)

Highest at JPY 13.27

NET SALES(Q)

At JPY 16,360 MM has Grown at 34.77%

INVENTORY TURNOVER RATIO(HY)

Highest at 19.86%

-22What is not working for the Company

NET PROFIT(HY)

At JPY 1,665 MM has Grown at -53.13%

NET SALES(HY)

At JPY 26,622 MM has Grown at -8.96%

ROCE(HY)

Lowest at 14.91%

RAW MATERIAL COST(Y)

Grown by 34.54% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.27%

INTEREST(Q)

Highest at JPY 33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.18 %

Here's what is working for Charm Care Corp.

Net Sales

At JPY 16,360 MM has Grown at 34.77%

over average net sales of the previous four periods of JPY 12,139.5 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 13.27 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Inventory Turnover Ratio

Highest at 19.86%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 325 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 Charm Care Corp.

Net Profit

At JPY 1,665 MM has Grown at -53.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 33 MM

in the last five periods and Increased by 6.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 10.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 13.27%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 34.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales