Dear Life Co., Ltd. (3245) 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

Loadstar Capital KK

GA technologies Co., Ltd.

CRE, Inc. (Japan)

ESLEAD CORP.

SRE Holdings Corp.

FJ Next Holdings Co., Ltd.

Dear Life Co., Ltd.

Sanei Architecture Planning Co., Ltd.

Arealink Co., Ltd.

Hoosiers Holdings Co., Ltd.

Miyakoshi Holdings, Inc.

Why is Dear Life Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.28%

Healthy long term growth as Net Sales has grown by an annual rate of 18.70% and Operating profit at 6.76%
INTEREST(HY) At JPY 171 MM has Grown at 40.16%
ROCE(HY) Lowest at 15.31%
NET SALES(Q) Lowest at JPY 2,538 MM

With ROE of 13.12%, it has a very attractive valuation with a 2.09 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 -4.71%, its profits have fallen by -26%

Below par performance in long term as well as near term

Along with generating -4.71% 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 Dear Life Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Dear Life Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dear Life Co., Ltd.

-4.71%

0.74

25.86%

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)

18.70%

EBIT Growth (5y)

6.76%

EBIT to Interest (avg)

31.53

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

31.85%

Dividend Payout Ratio

51.51%

Pledged Shares

Institutional Holding

ROCE (avg)

679.02%

ROE (avg)

16.28%

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

2.09

EV to EBIT

7.73

EV to EBITDA

7.04

EV to Capital Employed

3.79

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

49.05%

ROE (Latest)

13.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.55% (YoY

CASH AND EQV(HY)

Highest at JPY 54,244 MM

DEBT-EQUITY RATIO (HY)

Lowest at -10.22 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.24 times

DEBTORS TURNOVER RATIO(HY)

Highest at 174.42 times

-23What is not working for the Company

INTEREST(HY)

At JPY 171 MM has Grown at 40.16%

ROCE(HY)

Lowest at 15.31%

NET SALES(Q)

Lowest at JPY 2,538 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -316 MM

NET PROFIT(Q)

Lowest at JPY -425 MM

EPS(Q)

Lowest at JPY -9.44

Here's what is working for Dear Life Co., Ltd.

Cash and Eqv

Highest at JPY 54,244 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -10.22 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 174.42 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 0.55% (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 Dear Life Co., Ltd.

Interest

At JPY 171 MM has Grown at 40.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 2,538 MM has Fallen at -77.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -316 MM has Fallen at -130.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -425 MM has Fallen at -162.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 2,538 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY -316 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 -425 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -9.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)