Draft, Inc. (Japan) (5070) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Shingakukai Holdings Co., Ltd.

Draft, Inc. (Japan)

Why is Draft, Inc. (Japan) ?

Poor long term growth as Operating profit has grown by an annual rate -8.33% of over the last 5 years

With a fall in Net Sales of -54.47%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 2 consecutive quarters
The company has declared negative results in Dec 24 after 5 consecutive negative quarters
NET SALES(Q) At JPY 1,779.59 MM has Fallen at -54.47%
ROCE(HY) Lowest at -5.22%
CASH AND EQV(HY) Lowest at JPY 1,851 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 19.74%, its profits have fallen by -72.7%

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 Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Draft, Inc. (Japan) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Draft, Inc. (Japan)

19.74%

0.49

33.97%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.67%

EBIT Growth (5y)

-8.33%

EBIT to Interest (avg)

47.66

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

2.33

Tax Ratio

39.19%

Dividend Payout Ratio

18.65%

Pledged Shares

Institutional Holding

ROCE (avg)

22.99%

ROE (avg)

11.91%

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

1.44

EV to EBIT

14.03

EV to EBITDA

9.15

EV to Capital Employed

1.43

EV to Sales

0.50

PEG Ratio

Dividend Yield

ROCE (Latest)

10.21%

ROE (Latest)

6.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -32.1% (YoY

-47What is not working for the Company

NET SALES(Q)

At JPY 1,779.59 MM has Fallen at -54.47%

ROCE(HY)

Lowest at -5.22%

CASH AND EQV(HY)

Lowest at JPY 1,851 MM

DEBT-EQUITY RATIO (HY)

Highest at 28.04 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.54%

INTEREST(Q)

Highest at JPY 8.16 MM

OPERATING PROFIT(Q)

Lowest at JPY -324.36 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -381.58 MM

NET PROFIT(Q)

Lowest at JPY -270.38 MM

EPS(Q)

Lowest at JPY -26.83

Here's what is working for Draft, Inc. (Japan)

Raw Material Cost

Fallen by -32.1% (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 Draft, Inc. (Japan)

Net Sales

At JPY 1,779.59 MM has Fallen at -54.47%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -381.58 MM has Fallen at -241.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -270.38 MM has Fallen at -271.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 8.16 MM has Grown at 114.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 8.16 MM

in the last five periods and Increased by 114.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -324.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY -381.58 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 -270.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -26.83

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 1,851 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 28.04 %

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

Inventory Turnover Ratio

Lowest at 9.54%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio