Daisho Co., Ltd. (2816) 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

KENKO Mayonnaise Co., Ltd.

Nihon Shokuhin Kako Co., Ltd.

Nakamuraya Co., Ltd.

Pickles Holdings Co., Ltd.

Yutaka Foods Corp.

Daisho Co., Ltd.

KIBUN FOODS, Inc.

Morozoff Ltd.

Bull-Dog Sauce Co., Ltd.

Meito Sangyo Co., Ltd.

Yaizu Suisankagaku Industry Co., Ltd.

Why is Daisho Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.33%

The company has been able to generate a Return on Equity (avg) of 5.33% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -8.97% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.33% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -8.97% of over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 33 MM has Grown at 43.48%
CASH AND EQV(HY) Lowest at JPY 3,486 MM

With ROE of 4.14%, it has a very expensive valuation with a 1.32 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 0.50%, its profits have fallen by -31.4%

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 Daisho Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daisho Co., Ltd.

0.43%

-0.37

3.39%

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)

4.06%

EBIT Growth (5y)

-8.97%

EBIT to Interest (avg)

37.88

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

2.09

Tax Ratio

31.58%

Dividend Payout Ratio

44.55%

Pledged Shares

Institutional Holding

ROCE (avg)

8.89%

ROE (avg)

5.33%

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

1.32

EV to EBIT

26.61

EV to EBITDA

11.66

EV to Capital Employed

1.23

EV to Sales

0.66

PEG Ratio

Dividend Yield

ROCE (Latest)

4.62%

ROE (Latest)

4.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.61% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 8.81 times

PRE-TAX PROFIT(Q)

At JPY -46 MM has Grown at 69.33%

NET PROFIT(Q)

At JPY 15.53 MM has Grown at 114.24%

-9What is not working for the Company

INTEREST(HY)

At JPY 33 MM has Grown at 43.48%

CASH AND EQV(HY)

Lowest at JPY 3,486 MM

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

Pre-Tax Profit

At JPY -46 MM has Grown at 69.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 15.53 MM has Grown at 114.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 8.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.61% (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 Daisho Co., Ltd.

Interest

At JPY 33 MM has Grown at 43.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 3,486 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at JPY 0.42 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income