Curves Holdings Co., Ltd. (7085) 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

Nagase Brothers, Inc.

Azoom Co. Ltd.

Curves Holdings Co., Ltd.

Kakaku.com, Inc.

Kanagawa Chuo Kotsu Co., Ltd.

Riso Kyoiku Co., Ltd.

Tosho Co., Ltd.

Adventure, Inc.

Park24 Co., Ltd.

Benesse Holdings, Inc.

H.I.S. Co. Ltd.

Why is Curves Holdings Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 17.02%

Healthy long term growth as Net Sales has grown by an annual rate of 12.90% and Operating profit at 70.00%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 60.27

Negative results in May 25

INTEREST(9M) At JPY 45 MM has Grown at 38.88%
DEBTORS TURNOVER RATIO(HY) Lowest at 6.96%

With ROCE of 31.54%, it has a very attractive valuation with a 3.31 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 -6.80%, its profits have risen by 21.1% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -6.80% 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 hold?

Overall Portfolio exposure to Curves Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

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

Is Curves Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Curves Holdings Co., Ltd.

-7.97%

0.12

25.29%

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)

12.90%

EBIT Growth (5y)

70.00%

EBIT to Interest (avg)

69.95

Debt to EBITDA (avg)

1.28

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.24

Tax Ratio

36.08%

Dividend Payout Ratio

38.71%

Pledged Shares

Institutional Holding

ROCE (avg)

19.19%

ROE (avg)

15.90%

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

3.17

EV to EBIT

10.49

EV to EBITDA

7.64

EV to Capital Employed

3.31

EV to Sales

1.73

PEG Ratio

0.79

Dividend Yield

ROCE (Latest)

31.54%

ROE (Latest)

19.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

7What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -6.92 %

RAW MATERIAL COST(Y)

Fallen by 1.93% (YoY

NET SALES(Q)

Highest at JPY 9,553 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,738 MM

NET PROFIT(Q)

Highest at JPY 1,121 MM

EPS(Q)

Highest at JPY 12.18

-9What is not working for the Company

INTEREST(9M)

At JPY 45 MM has Grown at 38.88%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.96%

Here's what is working for Curves Holdings Co., Ltd.

Debt-Equity Ratio

Lowest at -6.92 % 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

Net Sales

Highest at JPY 9,553 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 1,738 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,121 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 12.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 1.93% (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 Curves Holdings Co., Ltd.

Interest

At JPY 32 MM has Grown at 46.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 6.96%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio