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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Intimate Merger, Inc.

IFIS Japan Ltd.

MicroAd, Inc.

SecondXight Analytica, Inc.

Solekia Ltd.

CORREC Co., Ltd.

Fuji Soft Service Bureau, Inc.

Planet, Inc.

ODK Solutions Co., Ltd.

ASJ Inc.

E-SUPPORTLINK Ltd.

Why is CORREC Co., Ltd. ?

INVENTORY TURNOVER RATIO(HY) Lowest at 17.99%
RAW MATERIAL COST(Y) Grown by 21.78% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -61.97 %

With ROE of 14.47%, it has a very attractive valuation with a 1.88 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 28.42%, its profits have risen by 102.5% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CORREC Co., Ltd. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

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

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

Is CORREC Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CORREC Co., Ltd.

28.42%

0.11

49.92%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.88%

EBIT Growth (5y)

25.51%

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)

2.76

Tax Ratio

4.30%

Dividend Payout Ratio

32.59%

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

1.88

EV to EBIT

8.37

EV to EBITDA

5.89

EV to Capital Employed

3.30

EV to Sales

0.25

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

39.45%

ROE (Latest)

14.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

27What is working for the Company

NET SALES(Q)

At JPY 1,837.97 MM has Grown at 29.83%

PRE-TAX PROFIT(Q)

At JPY 86.98 MM has Grown at 112.8%

CASH AND EQV(HY)

Highest at JPY 2,972.3 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 9.1

NET PROFIT(Q)

At JPY 71.55 MM has Grown at 81.81%

-19What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.99%

RAW MATERIAL COST(Y)

Grown by 21.78% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -61.97 %

INTEREST(Q)

Highest at JPY 1.87 MM

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

Net Sales

At JPY 1,837.97 MM has Grown at 29.83%

over average net sales of the previous four periods of JPY 1,415.64 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 86.98 MM has Grown at 112.8%

over average net sales of the previous four periods of JPY 40.87 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 71.55 MM has Grown at 81.81%

over average net sales of the previous four periods of JPY 39.36 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 2,972.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 9.1

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for CORREC Co., Ltd.

Interest

At JPY 1.87 MM has Grown at 40%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 17.99% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 1.87 MM

in the last five periods and Increased by 40% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -61.97 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 21.78% (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