CORREC Co., Ltd. (6578) 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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ASJ Inc.

CORREC Co., Ltd.

Why is CORREC Co., Ltd. ?

With a fall in EPS of -348.58%, the company declared Very Negative results in Feb 26

The company has declared negative results for the last 3 consecutive quarters
The company has declared negative results in Aug 25 after 3 consecutive negative quarters
NET SALES(HY) At JPY 3,372.87 MM has Grown at -11.5%
INVENTORY TURNOVER RATIO(HY) Lowest at 18.75 times
DEBTORS TURNOVER RATIO(HY) Lowest at 6.27 times

Underperformed the market in the last 1 year

The stock has generated a return of 45.25% 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 Commercial Services & Supplies)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is CORREC Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

CORREC Co., Ltd.

44.79%

0.82

43.84%

Japan Nikkei 225

85.83%

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)

10.97%

EBIT Growth (5y)

17.27%

EBIT to Interest (avg)

-245.49

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

3.21

Tax Ratio

4.30%

Dividend Payout Ratio

164.05%

Pledged Shares

Institutional Holding

ROCE (avg)

34.50%

ROE (avg)

9.08%

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

2.99

EV to EBIT

10.55

EV to EBITDA

8.66

EV to Capital Employed

4.99

EV to Sales

0.36

PEG Ratio

18.68

Dividend Yield

ROCE (Latest)

47.34%

ROE (Latest)

16.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -36.61% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 6.27

-35What is not working for the Company

NET SALES(HY)

At JPY 3,372.87 MM has Grown at -11.5%

INVENTORY TURNOVER RATIO(HY)

Lowest at 18.75 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.27 times

INTEREST(Q)

Highest at JPY 2.7 MM

OPERATING PROFIT(Q)

Lowest at JPY -35.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.06 %

PRE-TAX PROFIT(Q)

Lowest at JPY -49.53 MM

NET PROFIT(Q)

Lowest at JPY -14.84 MM

Here's what is working for CORREC Co., Ltd.

Dividend per share

Highest at JPY 6.27

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -36.61% (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 CORREC Co., Ltd.

Pre-Tax Profit

At JPY -49.53 MM has Fallen at -178.11%

over average net sales of the previous four periods of JPY 63.41 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -14.84 MM has Fallen at -137.35%

over average net sales of the previous four periods of JPY 39.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 2.7 MM has Grown at 40.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 3,372.87 MM has Grown at -11.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 2.7 MM

in the last five periods and Increased by 40.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -35.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -2.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -49.53 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 -14.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 18.75 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio