Delica Foods Holdings Co., Ltd. (3392) 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

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Delica Foods Holdings Co., Ltd.

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Why is Delica Foods Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.22%

The company has been able to generate a Return on Capital Employed (avg) of 3.22% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 31.46% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.30% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 31.46% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 49.8 MM has Grown at 16.03%
INVENTORY TURNOVER RATIO(HY) Lowest at 85.72 times
PRE-TAX PROFIT(Q) Fallen at -35.42%

With ROCE of 14.10%, it has a attractive valuation with a 1.19 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 31.53%, its profits have risen by 226.1% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Delica Foods Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Delica Foods Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Delica Foods Holdings Co., Ltd.

13.32%

1.21

36.77%

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)

13.50%

EBIT Growth (5y)

31.46%

EBIT to Interest (avg)

11.91

Debt to EBITDA (avg)

5.19

Net Debt to Equity (avg)

0.74

Sales to Capital Employed (avg)

2.72

Tax Ratio

29.51%

Dividend Payout Ratio

26.77%

Pledged Shares

Institutional Holding

ROCE (avg)

5.88%

ROE (avg)

5.30%

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

8.44

EV to EBITDA

5.53

EV to Capital Employed

1.19

EV to Sales

0.32

PEG Ratio

0.04

Dividend Yield

ROCE (Latest)

14.10%

ROE (Latest)

15.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

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

8What is working for the Company

NET PROFIT(9M)

At JPY 868.14 MM has Grown at 66.02%

DEBT-EQUITY RATIO (HY)

Lowest at 53.74 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 103.82%

RAW MATERIAL COST(Y)

Fallen by 1.09% (YoY

CASH AND EQV(HY)

Highest at JPY 9,923.22 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 10.09

-9What is not working for the Company

INTEREST(HY)

At JPY 49.8 MM has Grown at 16.03%

INVENTORY TURNOVER RATIO(HY)

Lowest at 85.72 times

PRE-TAX PROFIT(Q)

Fallen at -35.42%

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

Debt-Equity Ratio

Lowest at 53.74 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Profit

At JPY 868.14 MM has Grown at 66.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 9,923.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 10.09

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 103.82%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.09% (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 334.75 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Delica Foods Holdings Co., Ltd.

Interest

At JPY 49.8 MM has Grown at 16.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -35.42%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 85.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio