Dairei Co., Ltd. (2883) 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

Nippi, Inc.

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Unicafé, Inc.

Nakamuraya Co., Ltd.

Pickles Holdings Co., Ltd.

Dairei Co., Ltd.

Yutaka Foods Corp.

Daisho Co., Ltd.

KIBUN FOODS, Inc.

Yaizu Suisankagaku Industry Co., Ltd.

Why is Dairei Co., Ltd. ?

Weak Long Term Fundamental Strength with a 2.17% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 2.17% over the last 5 years

Flat results in Jun 26

RAW MATERIAL COST(Y) Grown by 6.74% (YoY)
OPERATING PROFIT(Q) Lowest at JPY 74.66 MM
OPERATING PROFIT MARGIN(Q) Lowest at 1.24 %

With ROE of 5.47%, it has a expensive valuation with a 1.34 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 0.15%, its profits have risen by 184% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 0.15% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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 FMCG)

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

Is Dairei Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dairei Co., Ltd.

-100.0%

0.77

6.30%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.17%

EBIT Growth (5y)

-7.11%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

2.78

Tax Ratio

30.28%

Dividend Payout Ratio

73.09%

Pledged Shares

Institutional Holding

ROCE (avg)

17.21%

ROE (avg)

7.07%

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

1.34

EV to EBIT

12.51

EV to EBITDA

11.39

EV to Capital Employed

1.57

EV to Sales

0.33

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

12.58%

ROE (Latest)

5.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

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

10What is working for the Company

NET PROFIT(HY)

Higher at JPY 145.72 MM

DEBT-EQUITY RATIO (HY)

Lowest at -36.49 %

DEBTORS TURNOVER RATIO(HY)

Highest at 6.27 times

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 6.74% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 74.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.24 %

PRE-TAX PROFIT(Q)

Lowest at JPY 57.05 MM

NET PROFIT(Q)

Lowest at JPY 35.39 MM

EPS(Q)

Lowest at JPY 6.04

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

Debt-Equity Ratio

Lowest at -36.49 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 6.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Pre-Tax Profit

At JPY 57.05 MM has Fallen at -53.43%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 35.39 MM has Fallen at -61.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 74.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 57.05 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 35.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 6.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 6.74% (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