DCM Holdings Co., Ltd. (3050) 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

Handsman Co., Ltd.

Joyful Honda Co. Ltd.

Keiyo Co., Ltd.

DCM Holdings Co., Ltd.

Alleanza Holdings Co., Ltd.

KOMERI CO., LTD.

Makiya Co., Ltd.

NAFCO Co., Ltd.

Arclands Corp.

Kohnan Shoji Co., Ltd.

Sekichu Co., Ltd.

Why is DCM Holdings Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 4.48% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 4.48% over the last 5 years

Flat results in Nov 25

INVENTORY TURNOVER RATIO(HY) Lowest at 2.11 times
NET SALES(Q) Lowest at JPY 124,705 MM
PRE-TAX PROFIT(Q) At JPY 5,458 MM has Fallen at -29.09%

With ROCE of 7.86%, it has a very attractive valuation with a 0.83 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 13.90%, its profits have fallen by -0.9% ; the PEG ratio of the company is 9.7

Underperformed the market in the last 1 year

The stock has generated a return of 13.90% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DCM Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

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

Is DCM Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

DCM Holdings Co., Ltd.

-100.0%

0.13

17.60%

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)

4.48%

EBIT Growth (5y)

9.79%

EBIT to Interest (avg)

13.15

Debt to EBITDA (avg)

2.85

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

0.98

Tax Ratio

40.24%

Dividend Payout Ratio

35.15%

Pledged Shares

Institutional Holding

ROCE (avg)

8.16%

ROE (avg)

7.78%

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

0.73

EV to EBIT

10.60

EV to EBITDA

7.18

EV to Capital Employed

0.83

EV to Sales

0.65

PEG Ratio

9.69

Dividend Yield

ROCE (Latest)

7.86%

ROE (Latest)

6.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.74% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 55.51 %

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.11 times

NET SALES(Q)

Lowest at JPY 124,705 MM

PRE-TAX PROFIT(Q)

At JPY 5,458 MM has Fallen at -29.09%

NET PROFIT(Q)

At JPY 3,213.84 MM has Fallen at -32.3%

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

Debt-Equity Ratio

Lowest at 55.51 %

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 -1.74% (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 DCM Holdings Co., Ltd.

Net Sales

Lowest at JPY 124,705 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 124,705 MM has Fallen at -7.14%

over average net sales of the previous four periods of JPY 134,289.25 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 5,458 MM has Fallen at -29.09%

over average net sales of the previous four periods of JPY 7,697.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,213.84 MM has Fallen at -32.3%

over average net sales of the previous four periods of JPY 4,746.98 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 2.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio