create restaurants holdings, inc. (3387) 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

FOOD & LIFE COMPANIES LTD.

McDonald's Holdings Co. (Japan) Ltd.

Colowide Co., Ltd.

Saizeriya Co., Ltd.

Zensho Holdings Co., Ltd.

create restaurants holdings, inc.

Ichibanya Co., Ltd.

TORIDOLL Holdings Corp.

Yoshinoya Holdings Co., Ltd.

Skylark Holdings Co., Ltd.

ATOM Corp.

Why is create restaurants holdings, inc. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 11.24% and Operating profit at 21.79% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 9.01% signifying low profitability per unit of total capital (equity and debt)

Flat results in Nov 25

CASH AND EQV(HY) Lowest at JPY 38,082 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 49.77 times
OPERATING PROFIT(Q) Lowest at JPY 6,152 MM

With ROCE of 17.27%, it has a very expensive valuation with a 5.53 Enterprise value to Capital Employed

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 -48.66%, its profits have fallen by -21.4%

Below par performance in long term as well as near term

Along with generating -48.66% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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 Leisure Services)

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

Is create restaurants holdings, inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

create restaurants holdings, inc.

-48.66%

-0.62

56.79%

Japan Nikkei 225

69.82%

2.74

25.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.24%

EBIT Growth (5y)

21.79%

EBIT to Interest (avg)

-1.57

Debt to EBITDA (avg)

14.57

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.97

Tax Ratio

20.09%

Dividend Payout Ratio

30.11%

Pledged Shares

Institutional Holding

ROCE (avg)

9.01%

ROE (avg)

14.21%

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

7.29

EV to EBIT

32.01

EV to EBITDA

12.59

EV to Capital Employed

5.53

EV to Sales

2.02

PEG Ratio

Dividend Yield

ROCE (Latest)

17.27%

ROE (Latest)

13.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

DEBT-EQUITY RATIO (HY)

Lowest at 112.44 %

RAW MATERIAL COST(Y)

Fallen by 1.07% (YoY

-4What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 38,082 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 49.77 times

OPERATING PROFIT(Q)

Lowest at JPY 6,152 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.24 %

Here's what is working for create restaurants holdings, inc.

Debt-Equity Ratio

Lowest at 112.44 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.07% (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 create restaurants holdings, inc.

Operating Profit

Lowest at JPY 6,152 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 15.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at JPY 38,082 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 49.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio