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

Nakamuraya Co., Ltd.

KENKO Mayonnaise Co., Ltd.

Pickles Holdings Co., Ltd.

Bull-Dog Sauce Co., Ltd.

Daisho Co., Ltd.

Yaizu Suisankagaku Industry Co., Ltd.

Nihon Shokuhin Kako Co., Ltd.

KIBUN FOODS, Inc.

Yutaka Foods Corp.

Morozoff Ltd.

Meito Sangyo Co., Ltd.

Why is Daisho Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 3.39% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at 41.48 %
INTEREST(Q) Highest at JPY 17 MM

With ROE of 4.89%, it has a expensive valuation with a 1.41 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 -0.21%, its profits have fallen by -20%

Below par performance in long term as well as near term

Along with generating -0.21% 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 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.

-0.21%

-0.06

4.41%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.45%

EBIT Growth (5y)

3.39%

EBIT to Interest (avg)

47.86

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

2.24

Tax Ratio

25.73%

Dividend Payout Ratio

37.94%

Pledged Shares

Institutional Holding

ROCE (avg)

10.33%

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

1.41

EV to EBIT

21.63

EV to EBITDA

10.91

EV to Capital Employed

1.39

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

6.45%

ROE (Latest)

4.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly 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

RAW MATERIAL COST(Y)

Fallen by -4.82% (YoY

NET SALES(Q)

Highest at JPY 9,228 MM

OPERATING PROFIT(Q)

Highest at JPY 1,376 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.91 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,077 MM

NET PROFIT(Q)

Highest at JPY 746 MM

EPS(Q)

Highest at JPY 77.28

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 41.48 %

INTEREST(Q)

Highest at JPY 17 MM

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

Net Sales

Highest at JPY 9,228 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,376 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 14.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,077 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 746 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 77.28

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -4.82% (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

Depreciation

Highest at JPY 290 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 290 MM has Grown at 69.59%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 17 MM has Grown at 21.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 17 MM

in the last five periods and Increased by 21.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 41.48 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio