ScoreWhy is COVER Corp. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 35.47%
- Healthy long term growth as Net Sales has grown by an annual rate of 65.90% and Operating profit at 47.33%
- Company has very low debt and has enough cash to service the debt requirements
2
Negative results in Jun 26
- ROCE(HY) Lowest at 15.64%
- NET SALES(Q) Lowest at JPY 8,825 MM
- OPERATING PROFIT(Q) Lowest at JPY 861 MM
3
With ROE of 26.98%, it has a expensive valuation with a 4.45 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 -14.51%, its profits have risen by 43% ; the PEG ratio of the company is 0.5
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -14.51% 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 ReportHow much should you hold?
- Overall Portfolio exposure to COVER Corp. should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is COVER Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
COVER Corp.
-21.57%
-0.16
62.14%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
65.90%
EBIT Growth (5y)
47.33%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.68
Sales to Capital Employed (avg)
2.60
Tax Ratio
20.96%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
182.94%
ROE (avg)
35.47%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
4.45
EV to EBIT
10.15
EV to EBITDA
8.53
EV to Capital Employed
13.13
EV to Sales
1.58
PEG Ratio
0.49
Dividend Yield
NA
ROCE (Latest)
129.43%
ROE (Latest)
26.98%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.1% (YoY
-8What is not working for the Company
ROCE(HY)
Lowest at 15.64%
NET SALES(Q)
Lowest at JPY 8,825 MM
OPERATING PROFIT(Q)
Lowest at JPY 861 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.76 %
PRE-TAX PROFIT(Q)
Lowest at JPY 641 MM
NET PROFIT(Q)
Lowest at JPY 445.59 MM
Here's what is working for COVER Corp.
Raw Material Cost
Fallen by 0.1% (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 COVER Corp.
Net Sales
Lowest at JPY 8,825 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 861 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 9.76 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 641 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 445.59 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Net Profit
Fallen at -35.7%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
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