Double Standard, Inc. (3925) 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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Why is Double Standard, Inc. ?

High Management Efficiency with a high ROE of 30.50%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 16.89% and Operating profit at 18.80%

Negative results in Dec 25

NET SALES(HY) At JPY 3,450.29 MM has Grown at -10.96%
NET PROFIT(HY) At JPY 590.27 MM has Grown at -35.75%
ROCE(HY) Lowest at 21.4%

With ROE of 27.96%, it has a very attractive valuation with a 3.46 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 -7.78%, its profits have risen by 6.9% ; the PEG ratio of the company is 1.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.78% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Double Standard, Inc. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

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

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

Is Double Standard, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Double Standard, Inc.

-7.78%

-0.52

33.82%

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)

16.89%

EBIT Growth (5y)

18.80%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.84

Sales to Capital Employed (avg)

1.37

Tax Ratio

31.72%

Dividend Payout Ratio

45.50%

Pledged Shares

Institutional Holding

ROCE (avg)

436.60%

ROE (avg)

30.50%

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

3.46

EV to EBIT

6.41

EV to EBITDA

6.21

EV to Capital Employed

16.12

EV to Sales

2.09

PEG Ratio

1.80

Dividend Yield

ROCE (Latest)

251.52%

ROE (Latest)

27.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at JPY 9,801.03 MM

-13What is not working for the Company

NET SALES(HY)

At JPY 3,450.29 MM has Grown at -10.96%

NET PROFIT(HY)

At JPY 590.27 MM has Grown at -35.75%

ROCE(HY)

Lowest at 21.4%

RAW MATERIAL COST(Y)

Grown by 22.73% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.35 times

Here's what is working for Double Standard, Inc.

Cash and Eqv

Highest at JPY 9,801.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

At JPY 25.09 MM has Grown at 47.69%

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 Double Standard, Inc.

Net Sales

At JPY 3,450.29 MM has Grown at -10.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Profit

At JPY 590.27 MM has Grown at -35.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 9.35 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 22.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales